Final Results

Creightons PLC
27 July 2005

                                 Creightons plc



Preliminary results for the year ended 31 March 2005



Chairman's statement



Review of the year



This year has been one of consolidation and investment in our branded business.
We undertook a significant rationalisation at the end of the year with the
decision to transfer manufacturing of a significant portion of our products to
Peterborough and the subsequent agreements to dispose of the Company's premises
at Storrington. Before the resultant exceptional costs associated with this
reorganisation the Group has again achieved profitable results.



At Potter and Moore Innovations Limited, further progress has been made,
rationalising the huge product range, reducing unnecessary overheads, and
improving manufacturing performance and operations.



The board entered into negotiation with potential purchasers for the Storrington
site towards the end of the financial year, having taken the decision in
principle to dispose of the site and transfer manufacturing to Peterborough if
satisfactory offers could be obtained.



Since shareholders' approval for the disposals was given on 30th June, work has
started to transfer and consolidate most of Creightons plc's manufacturing and
administration functions at the Peterborough plant operated by Potter & Moore
Innovations Ltd.



However, as indicated in last year's report and in my Interim report to
shareholders last December, we will continue to operate the Creightons and
Potter & Moore businesses separately, although we will seek to achieve savings
in administrative and manufacturing operations without jeopardising each
businesses' unique skills, product offerings and customer relationships.





Financial results



Consolidated Group Sales this year were £11,354,000 (2004: £12,238,000). The 7%
reduction from last years result has been mainly due to rationalisation of the
Creightons branded ranges, focusing on higher margin business. Sales and Gross
Profit were both higher in the second half due to the seasonal contract business
at Christmas. The Group has continued to strive for low cost producer status,
without compromising on product or service level quality.


We have made further investment in marketing, sales, and technical R&D support,
increasing headcount to strengthen our teams in all these areas.  Subsequent to
the yearend we have increased resources dedicated to securing improved sourcing
with the aim of continuing our drive to reduce product costs.



The board believes that although these investments have increased overheads in
this year, they have provided the business with greater ability to deliver new,
innovative products,  meet our customers service and product quality
expectations, and will result in improved results in the coming years. As we
anticipated, these investments did result in lower profit in the second half,
with operating profit before, exceptional costs, interest and tax of £216,000
(2004 £431,000). After interest of £161,000 (2004: £214,000), the Group has
achieved profit before exceptional costs of £55,000 (2004: £217,000). A
reorganisation charge of £431,000 (2004: £nil) has been made representing the
costs of the transfer of Storrington based operations to Peterborough, resulting
in retained loss for the year of £376,000 (2004: earnings of £202,000), with
diluted loss per share of 0.63p (2004: earnings of 0.34p). It is worth noting
that the gain on disposals of the Storrington site is anticipated to be
£401,000, which cannot be booked against the reorganisation costs since it was
not realised in the year ended 31 March 2005, and so will impact in the current
year.



During the year we negotiated a term loan secured on our freehold property with
our new bankers.  This had the advantage of converting the short-term overdraft
into long term loans and aligning our fixed assets and long term finance.



The directors are not in a position to declare a dividend this year.





Current year developments



As I mention above, the disposal of the Storrington site is expected to generate
a net profit in the current year of £401,000, whilst the costs of the resultant
reorganisation have already been provided in the £431,000 exceptional item this
year. We will also be seeking additional synergistic cost savings on top of
this.

On 15th July, we announced the appointment of Bill Glencross as Managing
Director of Potter & Moore Innovations Limited, the contracting part of the
Group's business, to ensure continued focus is maintained on the key contracts
part of the Group's operations.



Your board is also continuing to seek opportunities to acquire brands or
companies that would complement the existing businesses by offering synergies in
manufacturing, sourcing and marketing due to similarities in product alignment,
sourcing or outlets.





I would like to take this opportunity to thank each and every one of the Group's
employees for the hard work and effort they have put in over the past year.





William McIlroy

Chairman, 27th July 2005






Consolidated profit and loss account
For the year ended 31 March 2005


                                                                        2005           2005         2004           2004
                                                               Note     £000           £000         £000           £000

Turnover

Continuing operations                                                                11,354                      12,238

Cost of sales                                                                       (7,040)                     (7,794)

Gross Profit                                                                          4,314                       4,444


Operating expenses                                                   (4,105)                     (4,031)
Other operating income                                                     7                          18

                                                                       (431)
Exceptional costs                                                                                      -

Total operating expenses                                                            (4,529)                     (4,013)


Operating profit                                                                      (215)                         431


Net interest payable                                                                  (161)                       (214)

(Loss)/profit on ordinary activities before taxation

                                                                                      (376)                         217

Tax on (loss)/profit/ on ordinary activities                                            (-)                        (15)

(Loss)/profit on ordinary activities after taxation

                                                                                      (376)                         202

Retained (loss)/profit for the year                                                   (376)                         202


Basic (loss)/profit per share                                     1                  (069)p                       0.37p

Diluted (loss)/profit per share                                   1                 (0.63)p                       0.34p




The turnover and operating (loss)/profit arose from continuing operations.



The Group had no gains or losses other than the above results.



There is no difference between the results shown above and their historical cost











Note to consolidated profit and loss Account



1.  (Loss)/profit per share



The calculation of the basic loss per share is based on the loss after taxation
of £376,000 (2004 - profit £202,000) and 54,275,876  (2004 - 54,275,876)
ordinary shares, the weighted average number of shares in issue during the
period.  The calculation of the diluted loss per share is based on the basic
loss per share, adjusted for the effect of all dilutive options.







Consolidated balance sheet

At 31 March 2005-


                                                                    2005         2005            2004              2004
                                                                    £000         £000            £000              £000

Fixed assets
Tangible assets                                                                 1,589                             1,700
Intangible assets                                                                   3                                 8
Goodwill                                                                          296                               330
                                                                                1,888                             2,038

Current assets
Stocks                                                             2,088                        1,537
Debtors                                                            1,606                        1,946
Cash at bank                                                           1                            1

                                                                   3,695                        3,484

Creditors: amount falling due within one year                    (3,441)                      (3.850)

Net current assets/(liabilities)                                                  254                             (366)

Total assets less current liabilities                                           2,142                             1,672

Creditors: amount falling due after more
than one year                                                                   (892)                              (46)

Provisions for liabilities and charges                                           (15)                              (15)

Net Assets                                                                      1,235                             1,611


Capital and Reserves
Called up share capital                                                           543                               543
Share premium account                                                           1,229                             1,229
Capital redemption reserve                                                         18                                18
Capital reserve                                                                     7                                 7
Special Reserve                                                                    13                                13
Profit and loss account                                                         (575)                             (199)

Equity shareholders funds                                                       1,235                             1,611







Consolidated statement of cash flow

For the year ended 31 March 2005


                                                                                          2005                     2004
                                                                         Note             £000                     £000

Cash from operating activities                                              1              279                    (110)


Returns on investments and servicing of finance                             2            (161)                    (214)


Taxation                                                                                     -                        -


Capital expenditure and financial investments                               3             (86)                    (109)


Cash inflow/(outflow) before management of
liquid resources and financing                                                              32                    (433)
Financing                                                                   4              642                      193
Increase/(decrease) in cash in the year                                                    674                    (240)


Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash in the year                                                    674                    (240)
Cash outflow from repayment of debt                                                        255                       69

                                                                                           929                    (171)
New loans                                                                                (900)                    (262)

Movement in net debt in the year                                                            29                    (433)

Net debt at the start of the rear                                                      (2,233)                  (1,800)

Net debt at the end of the year                                                        (2,204)                  (2,233)








Notes to consolidated statement of cash flow

For the year ended 31 March 2005



1.      Reconciliation of operating loss to operating cash flow


                                                                                             2005                  2004
                                                                                             £000                  £000

Operating (loss)/profit                                                                     (215)                   431
Depreciation charges                                                                          196                   205
Amortisation of goodwill                                                                       34                    34
Amortisation of intangible assets                                                               5                     5
Loss/(profit) on disposal of fixed assets                                                       1                   (2)
(Increase) in stocks                                                                        (551)                 (890)
Decrease/(increase) in debtors                                                                340                 (779)
Increase in creditors                                                                         469                   886

Net cash inflow/(outflow) from operations                                                     279                 (110)






2.      Returns on investments and servicing of finance


                                                                                            2005                   2004
                                                                                            £000                   £000

Interest received                                                                              1                      1
Interest paid                                                                              (158)                  (212)
Interest element of HP payments                                                              (4)                    (3)

Net cash (outflow) for returns on investments
and servicing of finance                                                                   (161)                  (214)






3.      Capital expenditure and financial investments


                                                                                      2005                         2004
                                                                                      £000                         £000

Purchase of tangible fixed assets                                                     (96)                        (101)
Purchased goodwill                                                                       0                         (19)
Sale of tangible fixed assets                                                           10                           11

Net cash (outflow) from capital expenditure
and financial investments                                                             (86)                        (109)






Notes to consolidated statement of cash flow (continued)
For the year ended 31 March 2005



4.      Financing


                                                                                    2005                           2004

                                                                                    £000                           £000

Other loans                                                                          900                            162
Repayments of amounts borrowed                                                     (220)                           (50)
New hire purchase agreements                                                           0                            100
Capital element of HP payments                                                      (38)                           (19)

Net cash inflow from financing                                                       642                            193





5.      Analysis of changes in net debt


                                                                                      At 1 April  Cash flow At 31 March

                                                                                         2004                      2005
                                                                                         £000       £000           £000

Cash at bank and in hand                                                                    1          0              1
Overdrafts                                                                            (1,295)        674          (621)

                                                                                      (1,294)        674          (620)

Debt due within one year                                                                (854)        201          (653)
Debt falling due over one year                                                              0      (881)          (881)
HP contracts                                                                             (85)         38           (47)

                                                                                        (939)      (642)        (1,581)

Net debt                                                                              (2,233)         32        (2,201)







The preliminary statement of results has been reviewed and agreed with the
Company's auditors, Chantrey Vellacott DFK LLP, who have indicated that they
will be giving an unqualified opinion in their report on the statutory financial
statements.



Copies of the report and accounts for the year ended 31 March 2005 will be sent
to shareholders in due course.  Further copies will be available from the
Company's registered office, which is now at 1210 Lincoln Road, Peterborough, PE
4 6ND.




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