Interim Results

4Less Group plc (The)
23 November 2005



     The 4Less Group plc. 160 Brompton Road, Knightsbridge, London SW3 1HW
                     Tel. [phone] Fax. [phone]
                             www.the4lessgroup.com

                              The 4Less Group Plc

           Interim results for the six months ended 30 September 2005

Key Points

.       The Group returned to profitability with a profit before tax of £2,000
compared to a loss of £476,000 before tax in the comparable period in 2004.

.       Administration costs have been reduced by almost £850,000 to £1.4
million from £2.3 million in the comparable period in 2004.

.       Net cash of £0.4m (2004: £1.2m).

.       There is a clear focus on the Group's core businesses.



Contacts

The 4Less Group Plc                            020 7594 0515
Eric Peacock, Chairman
Richard Collier, Chief Executive

Corporate Synergy Plc                          020 7448 4400
Justin Lewis
Oliver Cairns





Chairman's Statement



The 6 month period to 30 September 2005 has been characterised by management
changes and by significant on-going investment in the core businesses. The
break-even position at September is considered satisfactory in the context of
the pre-tax loss of £476,000 for the comparable period last year and the pre-tax
loss of £968,000 for the year ended March 2005.

Interims

For the 6 months ended 30 September 2005 the Group made a profit before tax of
£1,617 (2004: Loss £475,887) on a turnover of £168m (2004: £181m). As at 30
September 2005 the Group had gross cash balances of £5.1m of which £0.4m
represented cash resources available to the Group.

Review

At the end of March 2005 the trade finance division was closed and the Car
Finance Company sold to Charles McLeod, a non-executive director.  In the period
under review, the Group has concentrated on its core businesses which are the
provision of specialist foreign exchange services for retail and corporate
customers, the provision of overseas mortgages, insurance products primarily for
the owners of overseas properties, and the provision of services to facilitate
regular payments to cover mortgages, pensions and other payments.

A number of board changes have taken place following the restructuring of the
business. Charles McLeod became a non-executive director with effect from 1
April 2005. On 15 August 2005 David Haddon was appointed executive marketing
director and James Corsellis resigned from his position as non-executive
director. On 26 September 2005 Richard Collier was appointed Chief Executive
Officer in place of Nigel Paul, who resigned from the Board. I would like to
offer my thanks to James for his contribution over the years, and to Nigel whose
services were invaluable to us during the difficulties that we experienced over
the last year.

Outlook

The business environment is becoming increasingly competitive and, although
reliable statistics are difficult to obtain, various commentators have pointed
to a 30 per cent decline in the number of overseas property acquisitions.
Nonetheless, the Currency Division is performing admirably in a highly
competitive market and it continues to provide significant savings to the medium
size corporations, individuals and introducers who use our services.

I am delighted that, following its restructuring, the Property Finance Division
is performing above target.  We have entered into a number of agreements with
overseas banks, highly reputable financial institutions, Independent Financial
Advisor groups and Real Estate Property Services Groups.  Coupled with the
Group's ability to facilitate regular overseas payment plans and overseas
insurance, the Group provides a completely integrated financial services
solution for clients who are looking to purchase, or who already own properties
overseas.

The Company will require further investment in its core businesses including
customer relationship management, innovative online registration and related
compliance systems, and technology across all the divisions. This investment is
being expensed and by year end we will have incurred in excess of some £200,000
in infrastructure and marketing investment.

We are confident that our concentration on our core activities coupled with the
fresh marketing and management initiatives will enable the Group to increase its
market share and maintain its highly professional service in the market place.
However the Group believes that the benefit from the investment and the
anticipated returns will only be fully felt in the next financial year.

Given this £200,000 investment in the future of the Company and that the period
from December to March are seasonally poor trading periods, we anticipate that
the results for the full year to 31 March 2006 will be a loss but very much less
than that incurred in the comparative period last year and that we will have a
satisfactory cash position.

As can be seen from the results, we have much to do but the turn-around from the
position last year is encouraging, and the benefits of our new investment should
be seen in the financial year commencing in April 2006.



Eric Peacock
Chairman


23 November 2005



CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                 Six months ended      Six months ended       Twelve months ended
                              30th September 2005   30th September 2004           31st March 2005
                                      (unaudited)           (unaudited)                 (audited)

TURNOVER
Continuing Operations                 168,017,316           181,047,698               355,048,877
Discontinued                                    0               102,852                   184,403
                                      168,017,316           181,150,550               335,233,280

Cost of sales
Continuing Operations               (166,645,459)         (179,390,777)             (332,166,149)
Discontinued Operations                         0               (6,717)                  (38,525)
                                    (166,645,459)         (179,397,494)             (332,204,674)

GROSS PROFIT
Continuing Operations                   1,371,857             1,656,921                 2,882,728
Discontinued Operations                         0                96,135                   145,878
                                        1,371,857             1,753,056                 3,028,606

Administrative expenses
Continuing Operations                 (1,483,755)           (2,188,806)               (3,628,056)
Discontinued Operations                         0             (142,095)                 (412,699)
                                      (1,483,755)           (2,330,901)               (4,040,755)

OPERATING (LOSS)
Continuing Operations                   (111,898)             (531,885)                 (745,328)
Discontinued Operations                         0              (45,960)                 (266,821)
                                        (111,898)             (577,845)               (1,012,149)

Interest receivable and
similar income
Continuing Operations                     113,845               101,779                   208,737
Discontinued Operations                         0                 1,765                     4,499
                                          113,845               103,544                   213,236

Interest payable and
similar charges
Continuing Operations                       (330)               (1,573)                   (5,511)
Discontinued Operations                         0                  (13)                      (13)
                                            (330)               (1,586)                   (5,524)

                                            1,617             (475,887)                 (804,437)

EXCEPTIONAL ITEMS

Profit on sale of                               0                     0                    35,269
subsidiary

Reorganisation                                  0                     0                 (199,221)

PROFIT / (LOSS) BEFORE
INTEREST & TAX                              1,617             (475,887)                 (968,389)

TAXATION                                        0              (68,000)                  (85,221)

PROFIT / (LOSS) FOR THE                     1,617             (407,887)                 (883,168)
PERIOD

(Loss) / Earnings per share                 0.02p               (5.26)p                  (11.23)p
- basic

                   - diluted                0.02p               (4.83)p                  (11.23)p
                   



CONSOLIDATED BALANCE SHEET


                               At 30th September 2005     At 30th September 2004      At 31st March 2005
                                          (unaudited)                (unaudited)               (audited)

FIXED ASSETS
Tangible Investments                          178,583                    285,688                 247,084

                                              178,583                    285,688                 247,084

CURRENT ASSETS
Debtors                                       627,938                    983,853                 597,393
Cash at Bank                                5,139,656                  7,148,455               5,594,089

                                            5,767,594                  8,132,308               6,191,482

CREDITORS: Amounts falling
due within one year
                                          (5,104,123)                (7,102,280)             (5,598,128)

NET CURRENT ASSETS                            663,471                  1,030,028                 593,354

TOTAL ASSETS LESS CURRENT
LIABILITIES                                   842,054                  1,315,716                 840,438
                                              
CREDITORS: amounts falling
due after one year                                  0                          0                       0
                                                   
NET ASSETS                                    842,054                  1,315,716                 840,438

CAPITAL AND RESERVES
Called up share capital                        79,762                     79,762                  79,762
Share premium account                       1,414,187                  1,414,187               1,414,187
Profit and loss account                     (651,895)                  (178,233)               (653,511)

EQUITY SHAREHOLDERS FUNDS                     842,054                  1,315,716                 840,438
                                              
                                              


CONSOLIDATED CASH FLOW STATEMENT


                                 Six months ended           Six months ended        Twelve months ended
                              30th September 2005        30th September 2004            31st March 2005
                                      (unaudited)                (unaudited)                  (audited)

Reconciliation of
operating loss to net
cash (outflow)

Operating loss                          (111,898)                  (577,845)                (1,012,149)
Reorganisation costs                            0                          0                  (199,221)
Disposal of assets to                           0                          0                     10,896
subsidiary
Depreciation of tangible                   75,097                     77,910                    157,333
fixed assets
Increase in debtors                      (30,545)                  (375,634)                     49,917
Decrease in creditors                   (494,006)                (1,207,930)                (2,556,248)

Net cash (outflow) from
operating activities                    (561,352)                (2,083,499)                (3,549,472)
                                        
CASH FLOW STATEMENT
Net cash (outflow) from
operating activities                    (561,352)                (2,083,498)                (3,549,472)
Returns of investment &
servicing of finance                      113,515                    101,958                    207,712
Taxation                                        0                     68,000                          0
Capital expenditure                       (6,596)                   (64,082)                  (121,231)
Disposal of subsidiary                          0                          0                   (68,998)
Cash (outflow) before                   (454,433)                (1,977,623)                (3,531,989)
financing
Financing:
Proceeds of AIM                                 0                  1,700,000                  1,700,000
flotation
Less associated costs of                        0                  (418,285)                  (418,285)
flotation

(Decrease) in cash for                  (454,433)                  (695,908)                (2,250,274)
the period

Reconciliation of net
cash flow to movement in
net funds
(Decrease) in cash in                   (454,433)                  (695,908)                (2,250,274)
the period

Change in net funds                     (454,433)                  (695,908)                (2,250,274)
Net funds at 1 April                    5,594,089                  7,844,363                  7,844,363
2005

Net funds at 30                         5,139,656                  7,148,455                  5,594,089
September 2005



1.         Nature of Information


The interim accounts for the six months ended 30 September 2005 and the
comparative figures for the six months ended 30 September 2004 are unaudited.
The comparative figures for the twelve months ended 31 March 2005 are not the
Company's statutory accounts within the meaning of section 240 of the Companies
Act 1985 but are abridged from such accounts which have been reported on by the
Company's auditors and delivered to the Registrar of Companies.  The report of
the auditors on such accounts was unqualified and did not contain any statement
under Sections 237(2) or 237(3) of the Companies Act 1985.

The interim accounts and the Comparative figures are prepared on the basis of
the accounting policies set out in the accounts of the Group for the twelve
months ended 31 March 2005.

2.         Segmental Information

NB: The discontinued businesses consist of the FLG Corporate Services division
of The 4Less Group Plc which ceased operating, and www.Car-Finance4Less.com Ltd,
which was sold, both with effect from 31 March 2005.

An analysis of turnover and profit before tax by class of business is given
below:

                                 Six months ended           Six months ended        Twelve months ended
                              30th September 2005        30th September 2004            31st March 2005
                                      (unaudited)                (unaudited)                  (audited)
Turnover

Continuing Operations:
Provision of foreign                  167,950,580                180,886,129                334,900,534
currency
Arranging property                         50,672                    157,881                    141,452
finance
Arranging of insurance                     16,064                      3,688                      6,891

                                      168,017,316                181,047,698                335,048,877

Discontinued Operations:
Arranging car finance                           0                     90,013                    161,440
Arranging trade finance                         0                     12,839                     22,963

                                                0                    102,852                    184,403

Total Turnover                        168,017,316                181,150,550                335,233,280

All turnover arose within the United Kingdom

Profit / (Loss) before
tax

Continuing Operations:
Provision of foreign                       59,504                  (369,592)                  (461,435)
currency
Arranging property                       (56,079)                    (6,895)                  (131,041)
finance
Arranging of insurance                    (1,808)                   (55,205)                   (61,905)

                                            1,617                  (431,692)                  (654,381)

Discontinued Operations:
Arranging car finance                           0                     15,357                  (110,038)
Arranging trade finance                         0                   (59,552)                  (203,970)

                                                0                   (44,195)                  (314,008)

Total Profit / (Loss)                       1,617                  (475,887)                  (968,389)
before tax



3.         Taxation

Based on the results of the period, the Group believe that no provision for
taxation is required.

4.         Earnings Per Share

Both basic earnings per share and diluted earnings per share are based on a
profit after tax of £1,617 (March 2005: Loss after tax £883,168 - September
2004: Loss after tax £407,887). The basic earnings per share has been calculated
on a weighted average of 7,976,183 (March 2005: 7,867,507 - September 2004:
7,759,425) ordinary shares in issue. Diluted earnings and loss per share is
calculated on the same basis as basic earnings and loss per share because the
average market price of the shares for the six month period was below the option
price of the shares.  For September 2004 the diluted loss per share was
calculated on a weighted average of 8,436,300 of ordinary shares in issue and
the dilutive potential ordinary shares from options and warrants.



    Copies of this interim announcement will be available from the Company's
             registered office, 160 Brompton Road, London, SW3 1HW.


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