Final Results

Dinkie Heel PLC
16 May 2005


                                DINKIE HEEL PLC
            PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004

Dinkie Heel plc (the 'Company') announces its preliminary audited results for
the year ended December 31 2004.

Highlights:

  • Profit before tax £74,000 (2003: loss £685,000)
  • Turnover £5.36m (2003: £5.63m)
  • Loss-making toecap business sold
  • Proposed name change
  • Net debt down by more than £1m
  • Shareholder funds of £475,000 (2003: deficit £802,000)

Chairman Richard Organ said:  'It is very pleasing to report that the Company
has been able to produce its first profit since 1998.  This is in stark contrast
to this time last year when shareholders were being asked to vote on proposals
to rescue the Company from insolvency.

'Your Board was successful in disposing of the loss making steel toecap activity
in December to its management and thereby completing the last step in the
reconstruction.

Since the year end, I am pleased to report that the Company has continued to
make strategic progress.  In February 2005, the Company raised a further
£750,000 in a successful placing.  This has been used to acquire 75% of
Friedman's, a converter of lycra for the dancewear, sportswear and swimwear
markets, and also to strengthen the balance sheet.

To reflect the new approach and direction of the Company, it will be proposed at
the annual general meeting that the name is changed to CEPS PLC, an abbreviation
of Chelverton Equity Partners, a clear description of the future approach of the
business.

The Board remains cautiously optimistic that the current year will show progress
in profits with an added expectation of further acquisitions'.

For further information:

Paul Quade, City Road Communications               020 7248 8010
Geoff Martin, Dinkie Heel                          0117 303 3404





Chairman's Statement

It is very pleasing to report that the Company has been able to produce its
first profit since 1998. This is in stark contrast to this time last year when
shareholders were being asked to vote on proposals to rescue the Company from
insolvency.

As shareholders are aware, the refinancing took place with a placing of
95,800,000 new shares being issued at 1p per share to raise £958,000 and
simultaneously £330,000 of outstanding loan notes were converted into new shares
at the same price.  The effect of this capital injection has been to transform
the financial strength of the Company.

Your Board was successful in disposing of the loss-making steel toecap activity
in December to its management and thereby completing the last step of the
reconstruction.  The consideration for the disposal was £145,000.

The refinancing has enabled Davies and Odell to commence much needed investment
in key aspects of their businesses.  The companies have excellent offshore
sourcing arrangements and now need to spend time and money developing routes to
market for their products.  Odell have a range of personal protection equipment,
designed to protect participants in extreme sports, which has recently won
specialist awards for its quality and it is important that this range is now
aggressively marketed through newly developed trading relationships.

In overall terms the operating profit before exceptional items in 2004 was
£239,000 versus a loss in 2003 of £476,000 on turnover which has reduced by 5%.
After exceptional costs of £99,000 and the much reduced interest charge, the
retained profit for the year was £74,000 against the substantial loss in 2003 of
£675,000, with positive earnings per share of 0.07p per share for the first time
since 1998.

For the year as a whole, cash outflow from operating activities was £137,000
after accounting for the delayed payment of £223,000 of VAT arising from the
sale of the Bristol property in 2003.  Net debt at £565,000 is down by over £1.0
million from the previous year, primarily due to the re-financing in April.

The balance sheet shows the benefit of the new share capital raised and the
capital reduction agreed by shareholders in April. New share capital of £1.3
million has been introduced and those funds, together with the reduction in
share capital and share premium confirmed by the Court in October, have allowed
the accumulated losses at the previous year end to be eliminated. Shareholders'
funds at the current year end were £475,000 by comparison with a deficit of
£802,000 a year earlier.

Since the year end, I am pleased to report that the Company has continued to
make strategic progress.  In February 2005, Dinkie Heel raised a further
£750,000 in a successful placing. This has been used to acquire 75% of
Friedman's, a converter of lycra for the dancewear, sportswear and swimwear
markets, and also to strengthen the Company's balance sheet

Dividend

The board has decided not to recommend a dividend for the year (2003, nil). It
is nevertheless committed to returning to the dividend list and to commencing
the payment of a growing dividend as part of shareholders' total return from
investment.

People

I would like to take the opportunity to wholeheartedly thank our staff for their
dedication to the business in 2004 when at last their efforts to return the
Company to profitability have been rewarded.

I would also like to thank Chris Ball for his support over the past very
difficult four years. In December 2004 Chris bought the toe cap trading assets
and left the Company. We wish him all success in this new venture.

Name Change

To reflect the new approach and direction of the Company it will be proposed at
the annual general meeting that the name is changed to CEPS PLC an abbreviation
of Chelverton Equity Partners, a clear description of the future approach of the
business.

Prospects and Future Developments

Trading during the early part of 2005 has started more slowly than last year as
consumer spending slows down in the UK.  Stiletto top-pieces and protective body
armour, including the newly launched armoured undergarments, are more active and
it is expected that the marketing efforts will produce benefits as the year
unfolds.

Sales at the newly acquired Friedman's business are in line with expectations
but the sales mix shows a predominance of plain over printed lycra products.
Following Friedman's success at international trade shows it was decided to
appoint distributors in other European countries. The first of these agents was
appointed in France and they have already opened several new accounts for
Friedman's products.

It is anticipated that this experience can be replicated elsewhere and allow
Friedman's to penetrate lucrative European markets

The Board remains cautiously optimistic that the current year will show further
progress in profits with an added expectation of further acquisitions in line
with the new strategy to continue the process of building the new CEPS PLC.

Richard Organ
Chairman

                                Dinkie Heel plc
                            Profit and Loss Account
                          Year ended 31 December 2004
                                                                                2004               2003
                                                                               £'000              £'000
Turnover
     continuing operations                                                     4,676              4,494
     discontinued operations                                                     687              1,142
                                                                               5,363              5,636
Cost of sales                                                                 (4,482)            (5,390)
Gross profit                                                                     881                246
Net operating expenses (including exceptional items)                            (741)            (1,235)

Operating profit/(loss) before exceptional items                                 239               (476)
Exceptional items
   Restructuring costs                                                           (99)              (477)
   Goodwill impairment provision                                                   -                (36)

Operating profit/(loss)
     continuing operations                                                       263                170
     discontinued operations                                                    (123)            (1,159)
                                                                                 140               (989)
Profit on sale of fixed assets                                                     -                481
Interest payable                                                                 (66)              (177)

Profit/(loss) on ordinary activities before taxation                              74               (685)
Taxation                                                                           -                 10

Profit/(loss) for the financial year                                              74               (675)
Dividends                                                                          -                  -

Retained profit/(loss) for the year                                               74               (675)

Earnings/(loss) per share
-        basic                                                                 0.07p            (4.41p)
-        diluted                                                               0.06p            (4.41p)

The Company has no recognised gains or losses other than the profit for
the financial year as set out above. In the opinion  of the directors
the results on a historical cost basis are not materially different
from the results as set out above.


                                Dinkie Heel plc
                                Balance Sheet
                                31 December 2004

                                                                               2004              2003
                                                                              £'000             £'000
Net assets employed

Fixed Assets
Intangible assets                                                                 -                 -
Tangible assets                                                                 263               272
Investment in associate                                                           -                 -
                                                                                263               272
Current assets :
Stocks                                                                          639               589
Debtors                                                                         813               859
Cash at bank and in hand                                                        422                 -
                                                                              1,874             1,448

Creditors : amounts falling due within one year                              (1,242)           (1,982)

Net current assets/(liabilities)                                                632             (534)

Total assets less current liabilities                                           895             (262)

Creditors :
amounts falling due after more than one year                                  (420)             (540)
Provisions for liabilities and charges                                            -                 -

Net assets/(liabilities)                                                        475             (802)

Capital and reserves

Called up share capital                                                         145               785
Share premium                                                                     -               710
Special Reserve                                                                 304                 -
Profit and loss account                                                          26            (2,297)

Total equity shareholders' funds                                                475              (802)



                                Dinkie Heel plc
                              Cash Flow Statement
                          Year ended 31 December 2004

                                                                               2004              2003
                                                                              £'000             £'000
Reconciliation of operating profit/(loss) to net cash outflow from
operating activities

Operating profit/(loss)                                                         140              (989)
Depreciation and amortisation charges                                            52               121
Impairment provisions                                                             -                36
(Increase)/decrease in stocks                                                   (50)              259
(Increase)/decrease in debtors                                                  (91)              180
Decrease in creditors                                                          (188)               (6)
Net cash outflow from operating activities                                     (137)             (399)

Cash Flow Statement

Net cash outflow from operating activities                                     (137)             (399)
Returns on investments and servicing of finance                                 (66)             (177)
Taxation                                                                          -                10
Capital expenditure and financial investment                                    (43)            1,518
Disposal                                                                        137                 -
                                                                               (109)              952
Financing                                                                       776               231
Increase in cash                                                                667             1,183

Reconciliation of net cash flow to movement in net debt
Increase in cash in the period                                                  667             1,183
Cash increase from change in debt                                               427              (189)
Change in net debt                                                            1,094               994
Net debt at 1 January 2004                                                   (1,659)           (2,653)
Net debt at 31 December 2004                                                   (565)           (1,659)



                                Dinkie Heel plc
                        Turnover and segmental analysis
                          Year ended 31 December 2004


The United Kingdom is the source of turnover and operating profit and the principal location of the
net assets of the Company. The directors consider that the Company operates in two business segments
serving various markets. Turnover, profit on ordinary activities before taxation and net assets are
analysed as follows:

Segment of activity:                         Dinkie            Davies Odell           Company
                                            2004       2003      2004      2003      2004       2003
                                           £'000      £'000     £'000     £'000     £'000      £'000

Turnover                                     687      1,142     4,676     4,494     5,363      5,636

Segmental (loss)/profit
  before exceptional items                  (24)      (682)       439       386       415      (296)
Exceptional items                           (99)      (477)         -      (36)      (99)      (513)
Profit on sale of fixed assets                 -        403         -        78         -        481
Segmental (loss)/profit
  before Group costs                       (123)      (756)       439       428       316      (328)
Group costs                                                                         (176)      (180)
Profit/(loss) before interest and
taxation                                                                              140      (508)
                                                                                      
Interest payable                                                                     (66)      (177)
Profit/(loss) before taxation                                                          74      (685)

Net (liabilities)/assets                   (129)      (275)     1,169     1,132     1,040        857

Unallocated net debt                                                                (565)    (1,659)

Total net assets/(liabilities)                                                        475      (802)


Geographical analysis of turnover:
United Kingdom                                                                      3,654      3,872
Rest of Europe                                                                        968        774
The Americas                                                                          248        304
Australasia                                                                            35         49
Far East                                                                              443        557
Africa                                                                                 15         80

Total turnover                                                                      5,363      5,636


Notes:

1.        The Annual Report and Financial Statements will be sent to all
shareholders. Further copies will be available to the public from the Company
Secretary at the Company's registered office, St Ivel Way, Warmley, Bristol BS30
8TY.

2.        Basic earnings per share is calculated on the profit on ordinary
activities before taxation of £74,000 (2003, loss £675,000) and on 106,125,367
(2003, 15,290,075) ordinary shares, being the weighted number in issue during
the year.

Diluted earnings per share is calculated on 114,790,505 ordinary shares, being
the weighted average number in issue adjusted to reflect the potential effect of
the exercise of share warrants. As a loss was incurred in 2003 diluted and basic
earnings per share were the same.

3.        The abridged accounts for the year ended 31 December 2004 and 2003 do
not constitute statutory accounts and are an extract from the Company's
statutory accounts on which the auditors give an unqualified opinion.


For further information contact:



Geoff Martin, Dinkie Heel plc                      0117 303 3404
Paul Quade, City Road Communications Ltd           020 7334 0243




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