Interim Results

BERRY BIRCH & NOBLE PLC
30 September 1999


Berry Birch & Noble, a leading Independent Financial Services Group, today
announced interim results for the half year ended 31 July 1999.

Berry Birch & Noble plc - results for the half year ended 31 July 1999

Financial highlights


                              Unaudited       Unaudited   Change      Audited
                              half year       half year               year
                              ended           ended                   ended
                              31 July         31 July               31 January
                                  1999            1998                    1999
                                  £000            £000                    £000

Turnover                         4,537           4,411       +3%         8,308

Operating profit before            373             534      -30%           750
exceptional item                                

Profit before exceptional          411             571      -28%           840
item and taxation

Exceptional item                     -            (150)                  (519)
 
Profit before taxation             411             421       -2%           321

Basic earnings per share before   
exceptional item                  5.9p            8.4p      -30%         11.3p

Basic earnings per share          
after exceptional item            5.9p            6.1p       -3%          5.8p

Interim Dividend                    1p              1p      Unchanged

Net Funds                          545             536      +£9K           602

------------------------------------------------------------------------------

Group results

We are pleased to be able to announce a Group profit before taxation for the
half year ended 31 July 1999 of £411,000 (1998: £421,000).  Whilst the result
represents a reduction of 2% in the Group profit before taxation when compared
to the corresponding period last year, it does, however, confirm the Board's
commitment to deliver a solid profit-base from which to grow the business
further.

The current result was realised by an increase in turnover of 3% over the
corresponding period last year, whereas operating costs increased by some 7%. 
As explained in last year's annual accounts, the Board recognises that
enhancing long-term shareholder value can only be achieved by continued
expansion, either organically or by acquisition.  Whilst the Board is
committed to keeping costs firmly under control, the strengthening of the
organisational structure, considered necessary as a base for future expansion,
together with additional expenditure on computer systems relating to the year
2000 issue, contributed to operating costs increasing at a faster rate than
revenue.

In accordance with the Group's strategic review carried out in 1998, the Group
has started to expand by acquisition, having entered into a number of
agreements since the beginning of the current financial year.  In March 1999,
the Group agreed to purchase the ongoing business operations of Bernard Denver
Associates, a small IFA based in Surrey.  In June 1999, the Group agreed to
purchase the ongoing Personal Financial Planning and Group Pensions business
operations of Moores Marr Bradley Ltd.  In July 1999, the Group entered into
an agreement to market financial services products to the clients of South
Essex Insurance Brokers Ltd.  In August 1999 and after the end of our latest
half year, the Group agreed to purchase the ongoing Insurance Broking business
operations of Peter Stewart Associates Ltd.  Whilst the effects of these
transactions were broadly neutral on the operating results for the half year,
the benefits will start to flow through for the first time during the second
half of our current financial year.

In respect of the Pensions Review, a full assessment of the Group's exposure
was completed in May 1999.  Between then and now little has changed and it is
the  Board's view that no further increase in the provision already
constituted is necessary at the current time.

As a result of the slightly reduced Group profit after taxation of £384,000
(1998: £400,000), basic earnings per share after exceptional item for the half
year fell to 5.9p per share (1998: 6.1p).

Review of operations

Our Personal Financial Planning Division remains extremely buoyant.  Following
the Moores Marr Bradley and South Essex Insurance Brokers transactions, we are
seeking to expand this Division at an accelerated rate to meet the needs of
our increased client base.  A significant development for this Division has
also been the rapid increase in the direct marketing of investment
opportunities to our clients which has proved a profitable and effective means
of keeping our clients in touch with offers on the market.  The half year also
saw a significant increase in activity in the provision of personal financial
seminars for the employees of our large corporate clients.

Our Mortgage Division had a mixed half year.  Despite the property market
becoming more active, and with property prices moving ahead strongly,
particularly in the South East, the results of this Division have been below
expectations.  This Division, which principally relies on its business from
the new build sector of the housing market, is dependent on the rate of
housing starts from our developer contacts.  We are currently in the process
of restructuring our Mortgage Division to develop a multifaceted approach to
sales, and our team of consultants has been reduced accordingly.  Whilst we
are keen to retain the business of our key developers, we are strengthening
our telesales team and introducing mortgages through the intranet sites of
some of our corporate connections.

Our Pensions Division is finding increased demand for advice on a wide range
of employee benefits issues.   The message from the Government is clear -
everyone will need to take more responsibility for their own financial
security.  This fact, together with the complexity of new financial products
introduced by the Government, means there is and will continue to be an
ever-increasing need for professional financial advice.

Our Insurance Broking Division which includes home, contents, motor and travel
insurance, goes from strength to strength as we continue to increase our
client numbers and market share.  Individuals are becoming more and more
cost-conscious and are being attracted to our products as a result of the
competitive rates that we offer.  The Insurance Broking Division will also
benefit from the acquisition of the Insurance Broking business of Peter
Stewart Associates.

Year 2000
A review of the Group's computer systems for year 2000 compliance had
previously been set out and the majority of these projects have now been
completed.  Those projects that have not been completed are nearing
completion, and it is the Board's view that year 2000 compliance will be
achieved by the end of October 1999.

Outlook
The Group remains committed to expansion, both organically and by acquisition.
 The acquisitions completed during the first half of the year will not only
improve the Group's earnings during the current year but  will also encourage
the Board to continue expansion by acquisition.  We remain confident in the
future of the Group.

Dividend
The Group's dividend policy for interim dividends is to pay one-third of the
prior year's total dividend, providing circumstances permit.   In respect of
the financial year to 31 January 1999, the Group paid a total dividend of 3p. 
Consequently, the Board has decided, in line with the Group's dividend policy,
to maintain the interim dividend at 1p per share (1998: 1p).  The interim
dividend will be paid on 24 November 1999 to shareholders on the register on
15 October 1999.

Staff members
The hard effort and loyalty of our staff have helped us achieve an overall
satisfactory result for the half year.  No company could succeed without the
support and dedication of its staff.  The Board would therefore, once again,
like to express their gratitude and sincere appreciation to those staff
members who have made such a result possible.

Sir Jeremy Black                                               Derek Berry
Chairman                                                       Chief Executive
30 September 1999


Consolidated profit and loss account
for the half year ended 31 July 1999


                                  Unaudited      Unaudited      Audited
                                  half year      half year        year
                                    ended          ended         ended
                                31 July 1999   31 July 1998   31 January 1999
                         Notes          £000           £000              £000

 
Turnover                              4,537           4,411             8,308
                                          
Operating costs                      (4,164)         (3,877)           (7,558)
                                ____________    ____________     _____________
                                 
Operating profit before                  
exceptional item                        373             534               750
                                          
Exceptional item             
- Pensions review            3            -            (150)             (519)
                               ____________    ____________     _____________

Operating profit                        373             384               231
                                          
Net interest receivable                  38              37                90
                                ____________    ____________     _____________
                                          
Profit on ordinary activities
before taxation                         411             421               321
                                          
Taxation                     4          (27)             (21)               57
                                ____________    ____________     _____________
                                          
Profit on ordinary activities 
after taxation                          384             400               378
                                          
Dividends paid and proposed  6          (65)            (65)             (196)
                                ____________    ____________     _____________
                                          
Retained profit                         319             335               182
                                ____________    ____________     _____________
                  

             
Earnings per share           5
- basic before exceptional 
  item                                  5.9p            8.4p             11.3p
- basic                                 5.9p            6.1p              5.8p
- diluted before exceptional 
  item                                  5.9p            8.4p             11.3p
- diluted                               5.9p            6.1p              5.8p
                                 ____________    ____________    _____________
            
The Group has no recognised gains or losses other than those included in the
profit above, therefore no separate statement of total recognised gains and
losses has been presented.


Consolidated balance sheet
at 31 July 1999


                                 Unaudited      Unaudited      Audited
                                     at             at            at
                                31 July 1999   31 July 1998   31 January 1999
                                        £000           £000              £000
 
Fixed assets                               
Intangible assets - goodwill             98               -                 - 
Tangible assets                       1,521           1,689             1,559
                                ____________    ____________     ____________
                                      1,619           1,689             1,559
                                          
Current assets
Debtors                               2,774           1,806             2,139
Cash at bank                          1,340           1,573             1,468
                                ____________    ____________     _____________
                                      4,114           3,379             3,607

Creditors - amounts falling
due within one year                                          
Borrowings                             (795)           (679)             (866)
Other                                (2,839)         (1,538)           (2,520)
                                ____________    ____________     _____________
                                     (3,634)         (2,217)           (3,386)

                                         
Net current assets                      480           1,162               221
                                ____________    ____________     _____________
Total assets less current             
liabilities                           2,099           2,851             1,780
                                          
Creditors - amounts falling 
due after more than one year                                          
Borrowings                                -            (358)              -
                                ____________    ____________     _____________
                                      2,099           2,493             1,780

Provisions for liabilities             
and charges                            (700)         (1,260)             (700)
                                ____________    ____________     _____________
                                       1,339           1,233             1,080
                                ____________    ____________     _____________

Capital and reserves
Called up share capital                 652             652               652
Share premium account                    78              78                78
Profit and loss account                 669             503               350
                                ____________    ____________     _____________
Equity shareholders' funds            1,399           1,233             1,080
                                ____________    ____________     _____________


Reconciliation of movements in shareholders' funds

                                                               Unaudited
                                                               half year ended
                                                                  31 July 1999
                                                                          £000
Profit for the period                                                     384
Dividends                                                                 (65)
                                                                 _____________
Net increase in shareholders' funds                                       319 
Opening shareholders' funds                                             1,080
                                                                 _____________
Closing shareholders' funds                                             1,399
                                                                 _____________
  


Consolidated cash flow statement
for the half year ended 31 July 1999

                                  Unaudited      Unaudited      Audited
                                  half year      half year        year
                                    ended          ended         ended
                                31 July 1999   31 July 1998   31 January 1999 
                                        £000           £000              £000

Net cash inflow from operating          
activities                               224             557               677
(Note 7)
                                   
Returns on investments and 
servicing of finance
Interest received                        54              66               144
Interest paid                           (16)            (29)              (54)
                                ____________    ____________     _____________
                                         38              37                90

Taxation                                   
UK corporation tax received              11               -                 -
Advance corporation tax                   -             (16)              (48)
                               ____________    ____________     _____________
                                         11             (16)              (48)

Capital expenditure and 
financial investment                                   
Purchase of tangible fixed assets      (158)            (28)             (124)
Purchase of goodwill                   (100)              -                 -
Sale of tangible fixed assets            58              50               183
                               ____________    ____________     _____________
Net cash (outflow)/inflow             
from capital expenditure              (200)              22                59

Equity dividends paid                  (130)            (65)             (130)
                               ____________    ____________     _____________
Cash inflow before management           
of liquid resources and financing       (57)            535               648 
   

Financing                                   
Capital element of finance 
lease payments                          (71)            (89)             (307)
                               ____________    ____________     _____________
(Decrease)/increase in cash in         (128)            446               341
the period                     ____________    ____________     _____________



Reconciliation of net cash flow to movement in net funds

                                 Unaudited      Unaudited      Audited
                                  half year      half year        year
                                    ended          ended         ended
                                31 July 1999   31 July 1998   31 January 1999 
                                        £000           £000              £000
                               
(Decrease)/increase in cash in 
the period                              (128)           446               341

Capital element of finance 
lease repayments                          71             89               307
                                ____________    ____________     _____________
Change in net cash resulting             
from cash flows                         (57)           535               648
                                   
Other non-cash items - 
finance leases                             -            (34)              (81)
                                ____________    ____________     _____________
Movement in net (debt)/funds             
in the period                           (57)            501               567
                                   
Net funds at commencement of 
period                                   602             35                35
                                ____________    ____________     _____________
Net funds at end of period               545            536               602
                                ____________    ____________     _____________
  
Notes to the interim results

1. Basis of preparation of interim financial information
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year
ended 31 January 1999.  The financial information contained in this interim
statement does not constitute statutory accounts as defined in section 240 of
the Companies Act 1985.  The financial information for the full preceding year
is extracted from the statutory accounts for the financial year ended 31
January 1999.  Those accounts, upon which the auditors issued an unqualified
opinion have been delivered to the Registrar of Companies.

2.  Segmental information

                                Unaudited      Unaudited        Audited
                                  half year      half year        year 
                                    ended          ended          ended
                                31 July 1999   31 July 1998   31 January 1999 
Turnover by business                    £000           £000              £000
Financial services                     3,598          3,560             6,589
Insurance broking                        939            851             1,719
                                ____________    ____________     _____________
                                       4,537          4,411             8,308
                                ____________    ____________     _____________
                                   
Profit before tax by business     
                              
Financial services                       308            326               164
Insurance broking                        103             95               157
                                ____________    ____________     _____________
                                         411            421               321
                                ____________    ____________     _____________

3.  Exceptional item
The exceptional item relates to provisions made in respect of the Pensions
Review.  The amount included at 31 January 1999 was calculated to include
amounts relating to both phase 1 and phase 2 of the Review.  At present no
further increase in the provision  is considered necessary. 

4. Taxation
The taxation charge is calculated by applying estimated rates, based on the
anticipated rate for the full year and is calculated after taking into account
prior year tax losses and after writing back advance corporation tax
previously written off.

5. Earnings per share
The calculation of the basic earnings per share of 5.9p (1998: 6.1p) is based
on profit after taxation of £384,000 (1998: £400,000) divided by the number of
shares in issue during the year of 6,516,836 (1998: 6,516,836).  The diluted
earnings per share of 5.9p (1998: 6.1p) is based on the same profit after
taxation of £384,000 (1998: £400,000) divided by 6,516,836 (1998: 6,516,836)
shares. 


6. Dividend
The Directors have approved the payment of an interim dividend of 1p on each
of the issued ordinary shares in the Company at a cost of £65,000 (1998:
£65,000).  The dividend will be paid on 24 November 1999 and sent to
shareholders on the register on 15 October 1999 (the record date).



7. Reconciliation of operating profit to net cash inflow from operating
activities
 

                                  Unaudited      Unaudited        Audited
                                  half year       half year        year 
                                    ended           ended          ended
                                31 July 1999   31 July 1998   31 January 1999
                                        £000           £000              £000

    
OPERATING ACTIVITIES                                   
Operating profit                         373            534               750
Exceptional item - Pensions review      
payments made net of recoveries         (252)          (321)             (622)
Depreciation of fixed assets             128            163               284
Loss/(profit) on sale of tangible 
fixed assets                              12             (5)                3
(Increase)/decrease in debtors          (618)           120                57
Increase in creditors                    581             66               205
                                 ____________    ____________    _____________
Net cash inflow from operating           224            557               677
activities                       ____________    ____________    _____________


8. Analysis of net funds

                              At 1      Cashflow   Other non-cash   At 31 July
                          February                        changes         1999
                              1999
                              £000          £000             £000         £000
                                              
Cash at bank                 1,468          (128)               -        1,340
Loan                          (500)            -                -        (500)
                          _________     __________    ___________   __________
                               968          (128)               -          840

Finance leases                (366)           71                -        (295)
                          _________     __________    ___________   __________
Total                          602           (57)               -         545 
                          _________     __________    ___________   __________
                                           
                                                 


9. General
This report will be sent to shareholders and will be made available to the
public, upon request, at the registered office of Berry Birch & Noble plc,
22-26 Station Road, West Wickham, Kent BR4 0PS.