Interim Results

4imprint Group PLC
18 September 2001


Press Release                                                 18 September 2001

                              4imprint Group plc

               Interim Results for the six months ended 30 June 2001

4imprint Group plc, the leading global distributor of imprinted promotional
products, today reports its Interim Results for the six months ended 30 June
2001.

Highlights

  * turnover from continuing operations up 5.5% to £45.7 million

  * profit before tax, exceptional items and goodwill amortisation £944,000,
    (£2,014,000 half year 2000)

  * earnings per share (EPS) pre goodwill amortisation of 2.3p

  * new dividend policy implemented - interim dividend of 1.0p per ordinary
    share

  * integration of US-based AIA franchise operations on target

  * other operating divisions performing well and poised for growth

  * Nissan Europe added to global 'blue chip' client list

  * market share worldwide still increasing

Commenting on the Results, Dick Nelson, Chief Executive of 4imprint Group plc,
said:

'The resources we have put in place during the first half of this year puts us
in a position to gain market share in a highly fragmented market.  The results
for the six months to end of June 2001 are the first to reflect our new
dividend policy that we made reference to in our review of the full year's
results in 2000.

'Although we remain cautious about the effect of the economy on our US direct
marketing business in the second half of this year, we are working on a number
of new substantial programme opportunities on both sides of the Atlantic that
should have a positive effect on the group from 2002 and beyond.'



                                   - Ends -



www.4imprint.com / www.4imprint.co.uk

For further information, please contact:

4imprint Group plc

Dick Nelson, Chief Executive                Tel: [phone]

Email: [e-mail]



Issued by:

Julian Bosdet / Henry Harrison-Topham

Bankside Consultants Limited                 Tel: [phone]

Email: [e-mail]


2001 Interim Results announcement

Introduction

4imprint Group has continued to increase its market share worldwide, despite
the problems with the US economy and the knock-on effects that they have
created in the UK and the rest of the world.  At the same time, the Company
also continues to invest in the systems and processes it will need to support
its future growth.

The integration of Adventures in Advertising Franchise, Inc. (AIA), the
acquisition made in December of last year, is proceeding on plan as we now
begin to convert their 450 'plus' franchise owners into OASIS, the Company's
bespoke enterprise operating system.  Additionally, the franchise owner
network has responded extremely positively to the expanded support they now
have available to them.  Evidence of this can already be seen by a number of
corporate programme contract wins as well as a growing number of programmes
that are in various stages of discussion.

Financial Summary

It is most encouraging to report that group turnover is up by 5.5% to £45.7
million in the Company's continuing operations.  Every even year our direct
import division, PPI, experiences significant revenues from major sporting
events such as the World Cup.  Management has been successful in diversifying
revenues towards more predictable streams in this division as evidenced by
PPI's first half sales of £7.6 million, which are more than double the £2.9
million it achieved in 1999, the last 'non-event' year, though down £3.7
million from 2000.

Profits before tax and goodwill amortisation were £940,000 compared with £
2,041,000 last year.  This decrease is largely the result of lower profit by
the US direct marketing operations, reallocation of central costs and the '
one-off' costs associated with the AIA acquisition referred to below.  The
Board has declared an interim dividend of 1.0p per ordinary share that
implements the new dividend policy as set out in the full report and accounts
for 2000.

Adventures in Advertising contributed turnover of $3.3 million for the half
year but incurred losses of $400,000 due to the seasonal nature of the
business, including one-off costs of $250,000, relating to its acquisition in
respect of the termination of its credit facility with GE Capital and the
winding down of its contract with its previous software provider.

Cash outflow in the first half of the year amounted to £16m, the non-recurring
factors being the acquisition of AIA (£11 million) and the acceleration of
payments to AIA suppliers (£3 million).  Further detail is shown in the cash
flow statement.

Corporate Programmes

                  Our corporate programme division designs, sources,
manufacturers, warehouses and distributes promotional products for such major
clients as Audi, British Airways, BT, Gillette, IBM, JCB, L'Oreal, Microsoft,
ntl:, Rolls Royce, and UNISYS.

Turnover in UK corporate programmes was up 11% in the first half, virtually on
budget.  From a near standing start last year, nearly 18% of our corporate
programme orders came in through the client internet stores.  Additionally,
the team has won seven new contracts in the last three months against no
losses.  These wins, which include Nissan Europe and others will yield
estimated annualised revenue of £5 million.

US corporate programme turnover was more than double last year's first half,
but is from a much smaller base than in the UK.  However, this part of the
Company is poised for considerable growth and has won in recent weeks several
significant multi-year contracts that will add annualised estimated revenue of
$10 million.  These include new programmes with Hitachi Data Systems,
Brunswick and Raley's, which will produce estimated combined annual revenue of
over $5 million, that have been won by AIA franchise owners, an excellent
result that we anticipated at the time of the acquisition.

Direct Marketing

               Our direct marketing division posts over 10 million catalogues
and other mailing pieces annually and serves over 150,000 customers worldwide.

UK direct marketing and field sales were up 25% over the first half of last
year, driven by an increase in catalogues posted and greater productivity from
the reorganised sales force.  Twenty-five percent of the direct marketing
orders are now coming in over the internet, which has a positive impact on
processing costs.

Order count was up slightly in the US direct marketing business though
additional costs were incurred as16% more catalogues were posted this year
than last.   A slippage in the average order value has left turnover level
with last year though exchange rate movements lifted revenues by £1.7 million.
Gross margins have remained the same.  It is pleasing to report that the
busiest order intake week in the US direct marketing division's history took
place in the second week of August, only to be eclipsed with another new
record in the fourth week of August.

Premiums

              Our premium division designs, sources and arranges offshore
manufacturing of large one-off imprinted product orders most often used by
larger companies in consumer promotions.

Our direct import business in the UK continues to move away from its
dependence on major events, for example the World Cup, with contracts such as
the one the Company has to provide airline amenity kits for several of the
world's leading carriers.  As a result, turnover is up more than two and
one-half times on the first half of 1999, the last year when there were no
significant world sporting events.

We have added staff in both the USA and Hong Kong to support the growth of the
US direct import business, which will be driven largely by the AIA franchise
owner network. This expanded resource was introduced to the owners in the
latter part of the first half and, as lead times are quite long in the import
business, we have achieved only limited billable US direct import sales in the
first half.  However, there is much in the pipeline that bodes well for the
second half of 2001 and for next year.

Partner Services

                  Our Partner Services division's charter is to leverage our
bespoke enterprise operating systems and industry-leading supply chain
management processes into other channels of distribution.

The Company's acquisition of AIA at the end of last year was its first effort
to leverage its processes and systems on a wider scale.  In the first half
Service Fee Income, the 'royalties' AIA receives on sales billed through it
system, increased 63%, while System Wide Billings were up 32% to $47.4
million.  Service Fee Income has increased at more than double the rate of
billings because the Company has expanded its services to the franchise owners
in recent years and is therefore able to charge additional fees.

The 62 new franchises sold in the first half were a little below plan as a
number of prospects took a wait-and-see attitude after it was announced at the
beginning of the year that AIA had been acquired.  This initial scepticism has
since evaporated as the expanded services and financial support brought to AIA
by 4imprint has become better known.  Sales activity in recent months has
accelerated and we expect to outpace last year's total in the second half.

As AIA continues to shift to the 'conversion' phase of franchising, we are
attracting more people who have industry experience.  As a result, a larger
percentage of those joining the system now have an existing customer base and
an active order book.  These 'veteran' owners pay a lower initial fee because
they require less training and therefore absorb fewer company resources than
do those who are new to the industry.  However, these 'industry-experienced'
owners also produce billable sales at both a faster and higher rate, yielding
more immediate Service Fee Income for the Company.

Current plans call for the introduction of a variation of the AIA model into
the UK next year, after the systems integration has been completed in the US.

Outlook

The resources we have been adding to the Company over the last six months have
put us in a position to gain market share in a highly fragmented market in
challenging times. Though our US direct marketing business has shown
considerable strength in recent weeks, we remain cautious about the effect of
the economy on this division in the second half.  We are working on a number
of new substantial corporate programme opportunities on both sides of the
Atlantic, which in a logical market would have a positive effect from 2002 and
beyond.  Unfortunately, market uncertainties have increased following the
tragic events in the United States last week and it is too early to assess the
impact it will have on our businesses.

Dick Nelson
Chief Executive
18 September 2001


Financial Summary
for the six months to 30 June 2001

                                        Half year    Half year      Full year 
                                        Unaudited    Unaudited        Audited 
                                          30 June       1 July    30 December 
                                             2001         2000           2000 
  Turnover                                                                    
  Continuing operations                   £45.68m      £43.28m        £88.03m 
  Discontinued operations                       -      £25.55m        £28.65m 
                                          £45.68m      £68.83m       £116.68m 
  Operating profit/(loss)                                                     
  Continuing operations                    £0.20m       £1.93m         £3.81m 
  Discontinued operations                       -     £(2.66)m       £(3.72)m 
                                           £0.20m     £(0.73)m         £0.09m 
  Profit/(loss) before taxation,                                              
  goodwill amortisation and                                                   
  exceptional items                                                           
  Continuing operations                    £0.94m       £2.04m         £4.79m 
  Discontinued operations                       -     £(2.66)m       £(3.72)m 
                                           £0.94m     £(0.62)m         £1.07m 

  Exceptional item (Disposals &                 -    £(44.55)m      £(45.88)m 
  reorganisation)                                                             

  Dividends per share                                                         
  Ordinary                                  1.00p        6.45p         18.65p 

  Earnings/(loss) per share                                                   
  Basic                                     1.16p    (158.72)p      (160.84)p 
  Diluted                                   1.16p    (157.96)p      (160.83)p 
  Pre goodwill amortisation                 2.30p    (158.37)p      (160.15)p 

  Shareholders' funds                     £47.02m      £47.32m        £45.84m 

  Net cash / (debt)                        £4.02m     £(5.32)m        £20.00m 

  Gearing                                       -          11%              - 


These financial statements should be read in conjunction with the notes.


Consolidated Profit & Loss Account


Unaudited, for the six months to 30 June 2001

                                          Half Year    Half Year    Full Year 
                                               2001         2000         2000 
                                              £'000        £'000        £'000 
  Turnover                                   45,680       68,826      116,678 
  Operating profit/(loss) before                665        (592)          370 
  goodwill amortisation                                                       
  Goodwill amortisation                       (469)        (138)        (277) 
  Operating profit/(loss)                       196        (730)           93 
  Exceptional item : loss on sale of                                          
  businesses and fundamental                      -     (44,547)     (45,884) 
  reorganisation                                                              
  Interest                                      279         (23)          704 
  Profit/(loss) before taxation                 475     (45,300)     (45,087) 
  Taxation                                    (142)          807        (275) 
  Profit/(loss) after taxation                  333     (44,493)     (45,362) 
  Dividends :          Ordinary &             (287)      (1,822)      (5,350) 
                       preference                                             
  Transfer to/(from) reserves                    46     (46,315)     (50,712) 
  Earnings per share                                                          
                       Basic                  1.16p    (158.72)p    (160.84)p 
                       Diluted                1.16p    (157.96)p    (160.83)p 
                       Pre goodwill           2.30p    (158.37)p    (160.15)p 
                       amortisation                                           

  Dividend per ordinary share:                1.00p        6.45p       18.65p 


These financial statements should be read in conjunction with the notes.


Reconciliation of Movement in Shareholders' Funds

  Unaudited                         At 30 June    At 1 July    At 30 December 
                                          2001         2000              2000 
                                         £'000        £'000             £'000 
  Profit/(loss) for the                    333     (44,493)          (45,362) 
  financial period                                                            
  Dividends                              (287)      (1,822)           (5,350) 
                                            46     (46,315)          (50,712) 

  Other recognised gains and losses      1,128         (33)             (374) 
  relating to the period                                         
  Shares issued in the                       -           54             1,727 
  period                                                                      
  Redemption of                              -            -             (208) 
  preference share                                                            
  capital                                                                     
  Goodwill reinstated                        -       29,789            31,590 
  on disposal of                                                              
  subsidiaries                                                                

  Net movement in                        1,174     (16,505)          (17,977) 
  shareholders' funds                                                         

  Opening shareholders'                 45,845       63,822            63,822 
  funds                                                                       

  Closing shareholders'                 47,019       47,317            45,845 
  funds                                                                       


These financial statements should be read in conjunction with the notes. 

                                                                              
  Consolidated Balance Sheet Unaudited                                          
                        
                                             At          At    At 30 December 
                                        30 June      1 July                   
                                           2001        2000              2000 
                                          £'000       £'000             £'000 
  Fixed assets                           25,079      34,099            22,143 

  Current assets                                                              
  Stock                                   5,412      21,074             5,732 
  Debtors due within one year            39,577      33,748            39,635 
  Debtors due after more than one         5,368       3,963             7,005 
  year                                                                        
  Cash at bank and in hand               19,800       4,988            28,110 
                                         70,157      63,773            80,482 

  Creditors due within one year        (40,632)    (42,006)          (49,352) 

  Net current assets                     29,525      21,767            31,130 

  Pension cost prepayment                     -      11,556                 - 

  Total assets less current              54,604      67,422            53,273 
  liabilities                                                                 

  Creditors due after more than one     (5,333)           -           (5,221) 
  year                                                                        
  Provisions for liabilities and        (2,252)    (20,105)           (2,207) 
  charges                                                                     
  Net assets                             47,019      47,317            45,845 
  Capital and reserves                                                        

  Called up share capital                11,044      11,052            11,044 
  Other reserves                         35,975      36,265            34,801 

  Shareholders' funds                    47,019      47,317            45,845 

  Analysis of shareholders' funds                                             
  Equity                                 47,019      47,109            45,845 
  Non-equity                                  -         208                 - 
                                         47,019      47,317            45,845 

  Net cash/(debt)                         4,021     (5,316)            19,997 

  Cash/(debt) as a percentage of             9%        -11%               44% 
  shareholders funds                                                          


    These financial statements should be read in conjunction with the notes.    
            
                                                                              
  Consolidated Cashflow                                                       
  Unaudited, for the six months to 30 June 2001                                 
                              
                                     Notes         Half       Half       Full 
                                                   Year       Year       Year 
                                                   2001       2000       2001 
                                                  £'000      £'000      £'000 
  Cash inflow from operating         6            1,068      4,984        183 
  activities                                                                  

  Returns on investments and                        207       (23)        772 
  servicing of finance                                                        

  Taxation                                        (111)      (418)      (797) 

  Capital expenditure                           (2,815)    (3,902)    (4,745) 

  Acquisitions                                 (10,954)    (3,259)    (1,863) 

  Disposals                                         266      1,476     37,672 

  Equity dividends paid                         (3,490)    (3,430)    (5,272) 

  Cash (outflow) / inflow before               (15,829)    (4,572)     25,950 
  the use of liquid resources and                                             
  financing                                                                   

  Financing                                                                   
  Issue of shares                                    67         54      1,689 
  Increase/(repayment) of loans                   7,801      3,724    (2,700) 
  Capital element of finance lease                  (7)      (162)      (179) 
  rental payments                                                             
                                                  7,861      3,616    (1,190) 

  (Decrease)/increase in cash in                (7,968)      (956)     24,760 
  the period                                                                  

  Cash (outflow)/inflow from                    (7,794)    (3,562)      2,879 
  movement in debt and                                                        
  finance leasing                                                             

  Change in net debt resulting                 (15,762)    (4,518)     27,639 
  from cashflows                                                              

  Debt acquired with subsidiaries                     -          -    (7,139) 
  Finance leases disposed of with                     -          -         31 
  subsidiaries                                                                
  Translation difference                          (214)      (194)         70 

  Cash (outflow)/inflow in the                 (15,976)    (4,712)     20,601 
  period                                                                      

  Opening net cash/(debt)                        19,997      (604)      (604) 

  Closing net cash/(debt)                         4,021    (5,316)     19,997 


These financial statements should be read in conjunction with the notes. 
                                                                              
  Notes to the Financial Statements                                           

  1 Basis of preparation                                                      
  This Interim Report for the half year ended 30 June 2001 has not been       
  audited and does not constitute statutory accounts within the meaning of    
  S240 of the Companies Act 1985. The financial information has been prepared 
  on the basis of the accounting policies set out in the Group's Annual       
  Report & Accounts for the year ended 30 December 2000. These accounts carry 
  an unqualified auditor's report and have been delivered to the Registrar of 
  Companies. The comparative results for the year ended 30 December 2000 are  
  abridged, and as such do not represent statutory accounts.                  


  2 Segmental Analysis                           2001                    2000 
                                  Sales    Op. profit     Sales    Op. profit 
                                  £'000         £'000     £'000         £'000 
  ORIGIN                                                                      
  United Kingdom                 24,878           347    26,711           971 
  United States                  20,802         (151)    16,569           955 
  Businesses disposed of              -             -    25,546       (2,656) 
  TOTAL                          45,680           196    68,826         (730) 

  PRODUCT                                                                     
  Promotional Marketing          45,680           196    43,280         1,926 
  Businesses disposed of              -             -    25,546       (2,656) 
  TOTAL                          45,680           196    68,826         (730) 

  3 Taxation                                                                  

  The taxation charge is calculated by applying the Directors' best estimate  
  of the Group's annual tax rate to the profit before taxation for the        
  period.                                                                     

  4 Dividend                                                                  

  The interim dividend for 2001 of 1.00p per ordinary share (2000 : 6.45p)    
  will be paid on 12 November 2001 to ordinary shareholders on the register   
  at the close of business on 19 October 2001.                                

  5 Earnings Per Share                                                        

  The Earnings Per Share for the half year is based on the profit after tax   
  of £333,000 (2000 : Loss - £44,501,000) and weighted average shares in      
  issue of 28,712,756 (2000 : 28,038,032).                                    

  The Diluted Earnings Per Share for the half year is based on the same       
  profit and loss figures as above, but takes into account the dilutive       
  effect of share options outstanding. The weighted average number of shares  
  in issue for Diluted Earnings Per Share purposes are 28,712,756 (2000 :     
  28,172,635).                                                                

  The Earnings Per Share pre goodwill amortisation for the half year is based 
  on a profit after tax of £661,000 (2000: Loss - £44,404,000) and weighted   
  average shares in issue of 28,712,756 (2000 : 28,038,032)                   
                                                                              
  6 Reconciliation of operating profit to operating cashflows                 

                                   Half                Half              Full 
                                   Year                Year              Year 
                                   2001                2000              2000 
                                  £'000               £'000             £'000 
  Operating                         196               (730)                93 
  profit/(loss)                                                               
  Depreciation                      843               2,668             3,537 
  charge                                                                      
  Amortisation of                   469                 138               277 
  goodwill                                                                    
  Profit on sale of                 (7)                (24)              (33) 
  tangible fixed                                                              
  assets                                                                      
  Release of                       (35)                (75)             (150) 
  deferred profit on                                                          
  sale and leaseback                                                          
  Pension prepayment                  -                  75                75 
  movement                                                                    
  Exceptional                      (27)               (250)           (1,256) 
  reorganisation                                                              
  costs paid                                                                  
  Decrease/(increase)               348             (7,905)           (6,350) 
  in stocks                                                                   
  Decrease in                     3,138              15,468            11,617 
  debtors                                                                     
  Decrease in                   (3,857)             (4,371)           (7,230) 
  creditors                                                                   
  Expenditure                         -                (10)             (397) 
  against provisions                                                          
  Net cash inflows from           1,068               4,984               183 
  operating activities