Final Results - Part 1

Headlam Group PLC
27 March 2001



PART 1
                                                                27 March 2001

             Preliminary Results for the Year Ended 31 December 2000

Headlam Group plc ('Headlam'), the floorcoverings and windowcoverings
distributor, announces its preliminary results for the year ended 31 December
2000.

Financial highlights

                                       2000          1999            Change
                                                                           
Turnover                            £448.6m       £386.9m            +16.0%
Operating profit *                   £29.5m        £34.3m            -13.8%
Goodwill amortisation              £(60.8)m       £(2.4)m                  
Asset impairment                    £(5.8)m             -                  
Exceptional items                   £(2.0)m             -                  
(Loss)/profit before taxation      £(44.0)m        £28.7m                  
Earnings per share *                  19.7p         27.5p            -28.4%
Total dividend per share             10.35p         10.0p             +3.5%

Key points

-   The operating profit * was principally driven by the continuing solid
    performance of the core floorcovering distribution business.
-   The substantial underperformance in the Windowcoverings division coupled
    with the restructuring and divestment activity has lead to a £67.3        
    million charge for goodwill amortisation, asset impairment and exceptional
    closure costs.
-   The recommendation of a final dividend of 7.55p per ordinary share
    underpins the board's confidence in the group's future progress.

*  before goodwill amortisation, asset impairment and exceptional items

Tony Brewer, Chief Executive of Headlam, said:

'Whilst 2000 has been a challenging year in the group's history, we are
pleased with the ongoing development of the floorcovering businesses, both
distribution and Gradus.  With the restructuring of the Windowcoverings
division underway, we are now confident that we have a platform for ongoing
improvement.'

Enquiries:

Headlam Group plc
Tony Brewer, Chief Executive                 Tel:  [phone]
Stephen Wilson, Finance Director             Thereafter:  01675 433000

Gavin Anderson & Company
Richard Constant/Victoria Jackson            Tel:  [phone]


CHAIRMAN'S STATEMENT

Our  core  floorcoverings  distribution business  had  another  good  year, 
but elsewhere the group encountered trading difficulties during the second 
half  of the year.  As the year came to a close, these difficulties were being
resolutely tackled and good progress has been made which is being followed
through  in  the new financial year.

Financial performance

Operating profit before goodwill amortisation and asset impairment for the
year, amounted to £29.5million compared with £34.3million for the previous
year.  The loss  before  taxation for the year of £44.0million is stated after
amortisation of goodwill totalling £60.8million, a charge for asset impairment
of £5.8million and  exceptional losses of £2.0million.  This result reflects
the  difficulties experienced in the group's activities outside the
floorcoverings  distribution businesses.  The trading performance of the
Eclipse businesses suffered  badly, and the disposal of our fabrics businesses
did not initially  proceed to our original timetable. The profitability of the
Gradus businesses slipped behind plan and was also marginally behind 1999
performance.

Earnings and dividend

Excluding goodwill amortisation, asset impairment and exceptional items,
earnings  per  ordinary share were 19.7p.  In view of this, together with the
progress to date with the fabrics disposals and our expectations for the
current year,  the  board  is  recommending a maintained final  dividend  of 
7.55p  per ordinary  share.  This makes a total of 10.35p per ordinary share
and represents an  increase  of  3.5%  over the previous year's total 
dividend  of  10.0p  per ordinary  share.   The  dividend for the year is
almost  twice  covered  by  the ordinary  profit  after  taxation for the year
excluding goodwill  amortisation, asset impairment and exceptional items.  If
approved, the final dividend will be paid on 2 July 2001 to shareholders on
the register at 15 June 2001.

Operations

During  the  course of a difficult year, the group's floorcoverings
distribution activity  proved  resilient,  improving  turnover  and 
profitability  over  the previous year both in the UK and in Continental
Europe.  The relocation of three UK  floorcoverings businesses into new
facilities in the first half of the  year went well.  The result achieved by
Belcolor, acquired in January 2000, was ahead of expectations and was earnings
enhancing for the group.

Eclipse - goodwill impairment

In  view  of  the performance of Eclipse during 2000, the board has  decided 
to write  down  the full carrying value of goodwill associated with this 
business. Further  rationalisation  of  the  Continental European  Eclipse 
businesses  is presently  taking place, whilst the immediate focus within
Eclipse is  now  upon improving the trading positions of the businesses
located in the UK and the USA.

Since  the end of 2000, the group has disposed of two fabrics businesses  for 
a total  consideration  of  £2.6million.  The  remaining  fabrics  businesses 
are currently profitable.


Board changes

As was previously announced, Tony Brewer, who has been a director of the
company since  June  1991,  and was previously Managing Director of  the 
Floorcoverings division, was appointed Chief Executive with effect from 6
November 2000, taking over from Ian Kirkham who resigned as a director.

The  board  would like to express their thanks to all the staff for  their 
hard work, commitment and continued customer service.

Group outlook

The  current year has started encouragingly with trading results for  the 
first two months slightly ahead of plan.  We are now well on course with the
disposals of the fabrics businesses, and progressing with the restructuring of
the Eclipse businesses.   This  augurs well for our plans to deliver our
budgeted  level  of profitability.  It is pleasing that we have made a good
start and that we are on course to deliver improved results for the year.


CHIEF EXECUTIVE'S REVIEW

2000  proved  to be another successful year for the floorcoverings 
distribution businesses  both  in the UK and Continental Europe.  Whilst the 
performance  of Gradus  was  initally  below expectations, it is now  enjoying
the benefit of previous investment.

As  communicated  during  the  autumn  of 2000,  the  Windowcoverings 
division, incorporating the fabrics and Eclipse businesses, was particularly
disappointing.   Action was taken during the latter part of 2000, and 
progress continues to be made on the restructuring of this division.

UK floorcoverings distribution

Sales  revenues in both the residential and commercial sectors improved in 
line with  our  internal expectations, and available external market  data 
indicates that  we  continued to increase our market share.  The growth was
well  balanced between  our regional centres, both MCD and the original
businesses, and through the national distribution presence of Mercado.

JHS,  the commercial carpet supplier, also had a successful year, expanding 
its product portfolio resulting in an improved market position.

Particularly  pleasing was the successful relocation of a number  of 
businesses being  completed without detracting from normal activities. 
Included  in  these relocations  were the recently acquired businesses of
Haldon Thompson,  Clifford Carpets and LGS which were accommodated within
existing operations.

In  all  cases,  the  acquired businesses have retained their  own  trade 
brand consistent with our policy of having autonomous brands which serves to 
maximise market penetration.

E-commerce  development  continued with the number of  orders  received 
through various formats increasing each month.  Our business-to-business
websites allow customers  to place orders 24 hours a day, every day, with real
time access to stock  information.   Over 1,600 of our customers are now 
actively using this facility.


Continental European floorcoverings distribution

Key  to our development in Continental Europe is the relationship which we 
have with principal  suppliers who have encouraged this initiative and 
together we have expanded distribution of their products to our mutual
benefit.

LMS,  which  distributes commercial and residential products throughout 
France, has  performed  particularly well during 2000, enlarging its  market 
share and meaningfully increasing profitability.  This trend has continued
into  2001 and there  are  opportunities for both organic growth and
complementary acquisitions to increase our presence in the French market.

As  foreseen, 2000 was a transitional year for Lethem-Vergeer in the
Netherlands with a realignment of the product portfolio requiring accelerated
stock disposal resulting  in  a  lower  gross margin and subsequently
depressed  profitability. This  process is now complete and during the first
quarter of 2001 we have  also been  able  to   merge successfully the
operations of our other Dutch  business, Interplan, in order to prevent the
recurrence of losses previously incurred.

The  acquisition of Belcolor in Switzerland has been particularly  successful,
and, with the benefit of the existing strong management team, it enhances  our
base for further expansion in Continental Europe when the appropriate
opportunity arises.

Gradus

All three businesses within Gradus showed positive sales growth during the
year.  However,  profitability  was  slightly lower  than  the  previous  year
due to increased investment in sales and marketing.

Accessories  further  developed its market position,  not  only  with  the 
core product offering, but also through initiatives in wall protection
products, and the successful acquisition of Decor Fabrications, which
complements our existing floor lighting operations.

Carpets  launched a major new product initiative aimed at the general
commercial sector.   This resulted in sales growing by 10% against the
previous year, but, due  to  high  marketing  costs  in the initial launch 
process,  the  resulting profitability  was  suppressed.   However, it is
particularly  encouraging  that sales  from  new products have continued to
improve into this year and  we have every confidence that 2001 will realise
the benefits of last year's investment.

The  fledgling  commercial  fabrics business formed  in  1999  made  a 
positive contribution in 2000, and is now well positioned to make a meaningful
return  on sales during 2001, consistent with other Gradus activities.

Eclipse

2000 proved to be a difficult year for our window blinds businesses.

In  the UK, delays in product launches were compounded by the merger of
Vertika, disrupting operations in Glasgow.  This undermined the overall
performance, and resulted in profitability being substantially below plan.

In  the initial months of 2001, we have focused on improving performance in 
the core  Eclipse UK business.  Now that the logistics issues of the Vertika 
merger have been resolved, we expect a positive contribution this year.

All  four operations in Continental Europe disappointed during the year. 
Sweden and  the  Netherlands  are  now showing some improvement,  and  plans 
are  well advanced to restructure and eliminate losses in Germany and the
Czech Republic.

Finally, in the USA, major innovative product launches during the year  did 
not deliver  the  anticipated results and the contribution  has  been 
substantially below  expectations.  Senior management within Eclipse have been
redeployed  in order to initiate a more satisfactory result.

Fabrics

The  performance of certain businesses deteriorated during the year, leading 
to our  decision to divest of a number of them.  This has resulted in the post
year end  disposal of B S Brown and Gordon John Textiles, and the impending 
sale of Claremont Fabrics.

Edinburgh  Weavers and William O'Hanlon made a positive contribution during 
the year and continue to make progress.

Board outlook

2001 has commenced with the floorcoverings distribution businesses in both 
the UK and Continental Europe delivering improved results in line with our
plans.

Gradus is benefiting from the initiatives of last year and we expect a growth
in profits this year.

Eclipse in the UK is improving internal controls and should deliver  enhanced
profitability.

Plans  are  well  advanced  to  restructure the Eclipse  businesses  located 
in Continental  Europe.  Our objective in the short-term is to  ensure  that 
loss-making operations are contained.

The  management  at  Eclipse in the USA have been refocused with  objectives 
to improve  product placement, production techniques and overhead control in 
order that a more acceptable level of profitability can be realised.

Summary

Whilst  2000  has been a challenging year in the group's history we are 
pleased with  the ongoing development of the floorcovering businesses, both
distribution and Gradus.  With the restructuring of the Windowcoverings
division underway  we are now confident that we have a platform for ongoing
improvement.



FINANCIAL REVIEW

Accounting policies

The financial statements have been prepared on a basis which is consistent
with previous years.

Divisional analysis

As  mentioned in the 2000 half year statements, the segmental analysis 
displays the  group's  activities by reference to the Floorcoverings and 
Windowcoverings divisions.  Previously, the analysis was Floorcoverings and
Furnishings.  Whilst there  is  no  change in the businesses included in each
division compared  with previous  years, the board is of the opinion that the
term Windowcoverings  more accurately  reflects  the majority of business
activities included  within this division.

Floorcoverings includes the UK and Continental European distribution 
businesses and  Gradus,  the business which manufactures and distributes
contract  flooring accessories and floorcoverings.

Windowcoverings includes the soft furnishing fabrics businesses and the 
Eclipse businesses which manufacture and distribute window blind systems.


Acquisitions, disposals and closures

During the year and the first quarter of 2001, the group acquired, disposed 
and closed businesses and segments of businesses.

The  acquired  businesses, all of which are included within  the 
Floorcoverings division, are as follows:

  -  Belcolor, a floorcoverings distribution business, located in Switzerland,
     acquired during January 2000.
  
  -  Clifford Carpets, a floorcoverings distribution business, located in the
     UK, acquired during January 2000.
  
  -  LGS, a floorcoverings distribution business, located in the UK, acquired
     during February 2000.

  -  Decor  Fabrications, a commercial lighting business, located in the  UK,
     acquired during July 2000.

The disposals and closures, all of which are included within the
Windowcoverings division, are as follows:

  -  ESV, a windowcoverings distribution business, located in the UK, which   
     was closed during October 2000.
  
  -  Headlam Textile Printers, a transfer printing operation, located in the  
     UK, which was closed during December 2000.

  -  BS Brown, a workwear fabrics distribution business, located in the  UK,
     which was disposed during January 2001.
  
  -  The soft furnishing fabrics cut, make and trim operation, located in the
     UK, which was closed during February 2001.
  
  -  Gordon John Textiles, a soft furnishing fabrics business, located in the
     UK, which was disposed during February 2001.

With  the  exception  of Headlam Textile Printers which was  part  of 
Claremont Fabrics, all of the above have been included in discontinued
operations.

Turnover

During the year, the group's turnover increased by 16.0% from £386.9 million
to £448.6 million.  The turnover for the year includes turnover from acquired
and discontinued businesses respectively amounting to £26.2 million and £16.5
million (1999: £21.1 million).  Turnover from ongoing operations, excluding
acquisitions, increased by 11.0% from £365.8 million to £405.9 million and
includes a full year contribution from JHS, Eclipse and LMS which were all
acquired during the first half of 1999.

Operating performance

The underlying operating profit on ordinary activities for the year, stated
before goodwill amortisation, asset impairment, and exceptional items,
decreased by 13.8% from £34.3 million to £29.5 million.

As highlighted in the segmental analysis this decline is principally
attributable to a significant downturn in performance in the Windowcoverings
division which, year on year, shows a decrease in operating profit of £6.1
million, down from £8.3 million to £2.2 million.

Asset impairment

As noted previously, two businesses have been disposed of since the year end.
The two transactions involved the sale of the business and associated assets
less certain liabilities.  The net realisable value of these assets amounted
to a value which, was less than the value of the assets recorded in the
consolidated balance sheet. Furthermore, it is likely that the future planned
disposal of another soft furnishing fabrics business will give rise to a
similar deficiency.  Under these circumstances, the board has elected to
recognise this impairment in asset value by way of a charge of £5.8 million
against this year's results.

Goodwill amortisation

The goodwill arising on acquisitions completed during the year, amounting to
£5.5 million has been capitalised and assigned a useful economic life of 20
years.  Goodwill has been amortised during the period on a timing basis in
order to match with post acquisition income and amounts to £0.3 million.

Goodwill amortisation arising on the acquisitions of JHS, LMS and Haldon
Thompson amounted to £0.5 million.

As noted earlier, this year's decline in profitability is principally
attributable to the under performance in the Windowcoverings division.  In
particular, the profit derived from the Eclipse businesses shows a significant
downturn compared with the forecasts completed for Eclipse before the
acquisition.  In the light of this deterioration and in combination with the
group's commitment to divest of substantial parts of the Eclipse activities,
the carrying value of goodwill, capitalised on the acquisition of Eclipse, has
been reviewed to determine the extent to which it has been impaired.  The
board has concluded that the goodwill no longer has any useful economic life
and has therefore elected to recognise an impairment loss of £60.0 million in
this year's results.

On the disposal of businesses in 2001, there will be a need to recognise a
goodwill write off of £9.3 million through the consolidated profit and loss
account.  This was previously written off to reserves at the date of
acquisition, as these transactions occurred before 1 January 1998, and has not
been recognised through the consolidated profit and loss account.

Exceptional items

Exceptional items relate to a £1.4 million loss incurred on the closure of
ESV, a business inherited through the acquisition of Eclipse, and losses of
£0.6 million arising from the sale of properties.

Net interest payable

The group's interest cost increased from £3.1 million to £4.9 million. 
Interest cover based on profit before goodwill amortisation, asset impairment
and exceptional items declined to 6.0 times compared with 11.1 times for the
previous year.

Taxation on (loss)/profit on ordinary activities

The underlying rate of tax during the year was 32.9% (1999: 34.2%) giving rise
to a charge of £7.1 million.  However, a prior year adjustment of £3.4 million
reduced the taxation charge to £3.7 million giving rise to an effective rate
of 18.6%(1999: 30.5%).  The prior year adjustment principally relates to tax
deductible items that had previously been excluded pending final agreement
with the Inland Revenue.  The underlying rate of tax is maintained at a higher
level than would ordinarily apply because of the inability of certain overseas
businesses to fully utilise the tax relief available in the year.

Movement in shareholders' funds

Shareholders'  funds  have decreased from £119.4 million to  £63.9  million.  
A substantial part of this decrease is caused by the board's decision to
recognise the goodwill impairment loss relating to Eclipse amounting to £60.0
million.

Cash flows

Cash  inflow  from  operating activities during the  period  amounted  to 
£32.3 million  compared  with  £32.0  million for the previous  year 
emphasising  the strength of the group's underlying trading performance. 
Within this inflow, net working  capital  investment  amounted to £1.4 
million  (1999:  £6.1  million), highlighting  the  cyclical nature of the
group's working capital  requirements.  During  the  first half of the year,
working capital investment  absorbed  £12.1 million of which £10.7 was
released during the second half of the year.



Cash inflow before financing for the year amounted to £0.9 million compared
with a  cash  outflow  of  £15.7 million for the previous year.   The  year 
on  year improvement was attributable to the following principal items shown:

                                                                           £m
                                                                              
Purchase of fixed assets                                                  4.9
Sale of fixed assets and investments                                      3.8
Acquisitions                                                             14.2
                                                                        ------
                                                                         22.9
                                                                              
Bank and loan interest                                                   (1.6)
Taxation                                                                 (1.5)
Dividends                                                                (3.9)
                                                                        ------
                                                                         (7.0)
                                                                        ------
                                                                         15.9
                                                                        ------
During  the year, cash outflow was £3.5 million compared with £12.7 million 
for the previous year.
                                        
Treasury management and financial instruments

The  group  operates  a policy of centralised treasury management  covering 
its funding arrangements, foreign exchange and interest rate exposure.

The group's financial instruments, other  than  derivatives,  comprise  cash,
borrowings  and  various items that arise directly from its operations  such 
as trade  debtors  and  trade  creditors.  The  main  purpose  of  these 
financial instruments is to raise finance for the group's trading operations.

The  analysis  set  out below excludes trade debtors and  trade  creditors.  
In addition, the group has non-equity shares, which have a total nominal 
value of £50,000  and  a  market value at 31 December 2000 of £46,605.   These
financial instruments have been excluded from the analysis below.

The group enters  into derivatives transactions for interest  rate  swaps  and
forward foreign  currency contracts.  The purpose of such  transactions  is 
to manage the interest rate and currency risks arising from the group's
sources of finance and operations.

It  is, and has been throughout the period under review, the group's policy
that trading in financial instruments is not permitted.

The  main risks arising from the group's financial instruments are interest
rate risk,  liquidity risk and foreign currency risk.  The board reviews  and 
agrees policies for managing each of these risks and they are summarised
below.  These policies have remained unchanged during the period under review.

Interest rate risk

The group finances its operations through a mixture of retained profits and
bank borrowings.   The group borrows principally in sterling, euros, US 
dollars and Swiss  francs at both fixed and floating rates of interest. 
Interest rate swaps have been used to manage the group's exposure to interest
rate fluctuations and achieve  desired  interest profiles.  During the year
and at 31  December 2000, with  the  exception  of  £2.0  million Swiss  franc
 fixed  interest  financial liabilities,  all  the  group's borrowings were at
floating  rates.   The  board continues to monitor the group's interest rate
risk and presently holds the view that,  during  this  period  of
restructuring and divestment,  the benefits of retaining  flexibility outweigh
the uncertainty associated  with  floating  rate interest profiles.

Floating rate financial liabilities

The  interest  rate and currency profile of the group's floating rate 
financial liabilities at 31 December was as follows:

Currency                                                         Floating rate
                                                      2000                1999
                                                        £m                  £m
                                                                              
Sterling                                              33.7                32.1
Euro                                                   0.7                 0.9
US dollar                                              1.7                 4.4
Swiss Franc                                            1.1                   -
                                                    ------              ------
                                                      37.2                37.4
                                                    ------              ------

The above analysis excludes financial liabilities used to provide a hedge
against foreign net investments.  The details of these foreign currency
borrowings as at 31 December are as follows:

Currency                   
                                                     2000                 1999
                                                       £m                   £m
                                                                              
Euro                                                  7.2                  7.1
Swiss Franc                                           4.1                    -
                                                    -----                 ----
                                                     11.3                  7.1
                                                    -----                 ----

Included within the euro financial liability above is an amount of £4.3
million which is included in cash at bank and in hand as permitted by the
group's bank set-off arrangements.

The floating rate financial liabilities are comprised of:

*     sterling denominated bank borrowings and overdrafts that bear interest  
      at rates based on UK bank base rate and LIBOR for periods between one   
      day and three months,
           
*     US dollar denominated bank borrowings and overdrafts that bear interest 
      at rates based on US prime rate and LIBOR for periods of one day,
           
*     euro bank borrowings and overdrafts based on Euro base rate,
           
*     and  Swiss  franc  denominated bank borrowings  and  overdrafts  based  
      on internal floating rates of the institutions providing the facilities.

Fixed rate financial liabilities

The weighted average interest rate and currency profile of the group's fixed
rate financial liabilities at 31 December 2000 was as follows:

                        Fixed rate financial liabilities
Currency      2000         Weighted average       Weighted average period for
                              interest rate               which rate is fixed
                                                                              
 
                £m                        %                             years
                                                                              
 
Swiss Franc    2.0                     4.49                              2.75
   
            ------                   ------                            ------
Financial assets

The interest rate and currency profile of the group's financial assets at 31
December was as follows :

Currency                                                         Floating rate
                                                   2000                   1999
                                                     £m                     £m
                                                                              
 
Euro                                                1.2                      -
US dollar                                             -                    0.9
                                                 ------                 ------
                                                    1.2                    0.9
                                                 ------                 ------

The  floating  rate financial assets are comprised of cash at  bank  that 
bears interest at overnight rates based on EURIBOR and US Prime. The above
analysis of financial  assets  excludes financial assets held in the same 
currency  as  the overseas operations.

Liquidity risk

The  group's  net  indebtedness increased from £33.6 million to  £38.9 
million.  Balance sheet gearing, based on shareholders' funds before the
capitalisation of goodwill,  increased  from 67.7% at 31 December 1999 to 
78.7%.   Balance sheet gearing  derived from shareholders' funds after the
capitalisation of goodwill was 61.0% compared with 28.2% for the previous
year.

The  group's  cash position during the year reduced by £3.7 million  from 
£10.9 million to £7.2 million.

Total group financial liabilities at 31 December were as follows:

                                         2000                             1999
                                           £m                               £m
                                                
Bank loans and overdraft                 41.0                             40.5
                                                                              
 
Obligations under finance leases                                              
and similar hire purchase contracts       5.2                              4.0

                                        ------                          ------
                                         46.2                             44.5
                                        ------                          ------


The maturity profile of the group's financial liabilities at 31 December was
as follows:

                                         2000                             1999
                                           £m                               £m
                                                                              
 
In one year or less, or on demand         8.0                             13.5
                                                                              
In more than one year but not more 
than two years                           33.9                             13.2

                                                                            
In more than two years but not more       
than five years                           4.3                             17.8
                                       ------                           ------
                                         46.2                             44.5

The  group  has various undrawn committed borrowing facilities expiring  in 
one year  or less which at 31 December 2000 amounted to £39.4 million.  As
mentioned previously,   the  board  has  placed  an  increasing  emphasis  on 
short-term flexibility  whilst  it manages this transitional period  of 
restructuring and divestment.

Foreign currency risk

The  group's overseas  subsidiaries have their operations  denominated  in 
the currency  of the country where they are based.  In order to protect the 
group's sterling  balance  sheet from foreign currency movements, the group 
finances a significant part of its net investment by means of foreign currency
borrowings.

The  group's  policy is to eliminate all currency movements on its  selling 
and buying activities through currency contracts for a period of up to twelve
months forward.   As  at  31  December 2000, after taking account  of  forward
foreign contracts, the group has eliminated exposure to movements in foreign
currency.

Gains and  losses on currency contracts are not recognised until  the 
exposure that  is  being hedged is recognised.  Unrecognised gains and losses
on currency contracts and the movements during the year are as follows:

                                                                Total net
                               Gains          Losses          gains/(losses)
                                 £m             £m                  £m
Unrecognised gains and        ------          ------              ------      
losses on currency              
contracts at 1 January 2000     0.1             0.2               (0.1)

                                                                     
Gains and losses arising                                             
in previous years that         
were recognised in 2000         0.1             0.2               (0.1)
                              ------          ------              ------      
                                   
Gains and losses arising                                             
before 1 January 2000 that        
were not recognised in 2000      -               -                  -

                                                                     
Gains and losses arising                                             
in 2000 that were not           
recognised in 2000               -               -                  -
                              ------          ------              ------      
                                    
Unrecognised gains and                                               
losses on currency contracts     
at 31 December 2000              -               -                  -
                              ------          ------              ------      
                                 
Gains and losses expected                                            
to be arising in 2001 that       
were not recognised in 2000      -               -                  -

Fair values

As at 31 December 2000, there was no material difference between the book and
fair value of the group's financial instruments.

Going concern

The financial statements have been prepared on the going concern basis since
the board  is  satisfied  that  the company has adequate resources  to 
continue in operational existence for the foreseeable future.

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