Final Results - Year Ended 30 September 1999

Leeds Group PLC
14 December 1999

                      Preliminary Results
                  Year Ended 30 September 1999

'Leeds Group restructuring to establish platform for growth'
 
          Closure of Scott & Rhodes branch and appreciating
          Sterling contributed to turnover reduction from £73.6m to
          £61.1m

          All divisions contributed to operating profit of £3.5m
          before exceptional items

          Exceptional items were £7.6m, principally from fixed
          asset impairment and closure of Scott & Rhodes branch

          Despite impact of exceptional costs on shareholders'
          funds, strong cashflow has reduced gearing to 21% (1998: 28%)

          Net cash inflow from operating activities was £11.2m
          (1998: £3.0m)

          Net debt reduced from £12.0m to £7.5m, a level not
          significantly higher than finance lease debtors of £6.3m

          Earnings per share of 4.7p before exceptional items
          (1998: 10.2p)

          Total dividend of 3.0p (1998: 7.0p)

'Following  the  completion  of our  strategic  review,  I  am
confident  that the actions we intend to take  over  the  next
twelve  months  will place the Group firmly  on  its  road  to
recovery'

                                Chris Marsden, Chief Executive



                        FULL STATEMENT ATTACHED


Enquiries:
Chris Marsden                                     Ian Hunter
Chief Executive                                   Citigate
Dewe Rogerson Ltd
Leeds Group plc                        Today:    0171-638 9571
Today:    0171-638 9571 (9.00am - 12.00noon)      
Thereafter: 0121-631 2299
Thereafter: 01943 876222   Mobile: [phone]

                              -2-

                      Preliminary Results
              for the year ended 30 September 1999


STATEMENT BY THE CHAIRMAN, ROBERT WADE
The  last  twelve  months have been a period  of  considerable
transformation for the Group as we re-define the scope of  our
activities  to match the rapidly changing trading environment.
1999  was  the second successive year of turmoil in  virtually
every  part  of the European textile industry.   Many  of  our
customers and competitors have closed or been reduced to loss-
making,  and against this challenging background, it  is  some
evidence   of  our  Group's  strength  that,  before  charging
exceptional items, we have made a profit in every division.

Clearly,  however,  we  cannot accept the  current  inadequate
return  on  investment, and the Board  has  resolved  to  take
whatever  steps  are  necessary to  restore  profitability  to
former  levels.   Chris  Marsden,  our  Chief  Executive,  was
appointed  a  year  ago  and  has  completed  a  comprehensive
strategic review of all the Group's activities.  We now have a
clear plan of where we shall dispose or consolidate, and where
we  can  see  some  prospects that  justify  further  tactical
investment.   The necessary actions are already underway,  and
the  coming months will see the re-shaping of the Group.   The
size of our traditional textile base is being realigned to our
expectations of demand, and we are expanding the scope both of
our  European  import  / distribution division  and  of  Leeds
Leasing.   Both  these  subsidiaries have  continued  to  grow
successfully, and in each case we have taken steps  to  expand
sales and to reinforce the excellent management teams.

Tom  Ashdown,  our  Managing Director until last  March,  will
retire as a Non-Executive Director at the end of December.   I
am sincerely grateful to Tom for the huge contribution that he
has  made  to  the  Group  over many  years.   A  new  Finance
Director, Malcolm Wilson, was appointed in April, and  he  has
supervised  the implementation of a new Group-wide  IT  system
which will ensure better controls and faster reaction.

In  preparation  for  the plans that we have  authorised,  the
Balance  Sheet has been strengthened by a reduction in gearing
from  28%  to  21%.  It is likely that there will  be  further
exceptional  items  next year, before the  re-shaping  of  the
Group is completed.

I  wrote in my Interim Statement that the Board believes  that
our   dividend  should  be  covered  by  net  earnings  before
exceptional items.  We recommend that the interim of 1p should
be followed by a final dividend of 2p per share.

Since  20 May, I have become Non-Executive Chairman.   I  have
found   working   with  Chris  Marsden  and  his   team   very
stimulating, and I am grateful to our workforce who  have  co-
operated  fully in the face of many changes.  I do not  expect
rapid  relief  from the trading difficulties  of  the  textile
industry, and we are not relying on market recovery to improve
our  financial performance.  However, I have no doubt that  we
have  the leadership which is required to meet the challenges,
that we have taken the immediate actions to address short term
issues,  and  that  the  Board  is  evolving  the  appropriate
strategy   to   widen  our  longer  term   opportunities.    I
confidently expect that the new year will start to reflect the
benefits of these.


                              -3-

                    Preliminary Results
             for the year ended 30 September 1999


OPERATING REVIEW BY THE CHIEF EXECUTIVE, CHRIS MARSDEN
My  first Operating Review as Chief Executive is written in  a
difficult  trading environment.  As our Chairman has reported,
the  past year has seen continued adverse pressure in most  of
the markets in which we operate.

Against  such  a demanding backdrop we have succeeded,  before
charging exceptional items, in producing a positive result  in
all  divisions.  This reflects firstly the inherent  strengths
of  a  number  of  components of the Group, and  secondly  the
capability   and  determination  of  our  people  to   perform
admirably  in  demanding markets.  Both of these factors  will
stand  us  in  good  stead for the future,  and  I  extend  my
personal  thanks  to  all  members  of  the  Group  for  their
impressive contributions over the past year.

UK DYEING
UK Dyeing produced a relatively strong performance in a market
that   has   declined  in  its  traditional  apparel  sectors.
However,  we  have progressively moved away from  apparel  and
targeted  other  sectors, such as transport  and  furnishings,
which remain buoyant with prospects for growth.   Our strategy
over  the  past  year has comprised three  key  elements:    a
structured   cost   reduction   programme   which   has   been
successfully delivered;  a focus on customer service including
rapid  response to customer requirements as lead times  become
ever  shorter;  and the development of technical  capabilities
in  order to be able to process an ever wider substrate  base,
particularly  in areas additional to wool, which are  critical
to  market growth.  These factors have enabled us to enter the
next  Millennium  in a very strong position  within  the  UK's
technical dyeing sector.

We  have  also  confirmed during the  year  investment  in  an
extension  of the finishing facilities and a new dyehouse  for
Schofield  Cloth  Finishers.   The  new  facilities  will   be
completed  by  Spring  2000,  and  will  not  only  strengthen
Schofields' position as the dyer and finisher for the Scottish
market,  but will also create the ability to supply the  other
markets in the UK.

UK PRINTING
Strines benefited from the capital expenditure of the past few
years,  and  again delivered a solid performance,  reinforcing
its position as the UK's leading technical textile printer.

Sharps  produced  a  good result, and we are  planning  modest
capital  investments in support of enhanced customer  service,
which will provide additional benefits in the year ahead.

Walsden  has delivered a performance in line with expectations
in   a  difficult  trading  environment,  retaining  a  strong
customer base.  However, despite strenuous management  efforts
having  been  deployed  to  improve efficiency,  margins  have
suffered further erosion.


                              -4-


The textile printing business Calprina was acquired in October
1999  from  Crowson Fabrics, one of the UK market  leaders  in
home furnishings.  In making this acquisition, we were able to
secure  'preferred  supplier'  status  with  Crowson,  thereby
strengthening the Group's position as a leading edge  supplier
to this quality sector.

CLG (HOLDING) BV
Brummen
Itex,  the distribution arm of Brummen, had another successful
year and saw the benefits from the new warehouse and showrooms
which  came into operation in 1998.  The outlook continues  to
be  promising,  given the increasing trend for imported  goods
from  developing  countries.  Itex is in a  good  position  to
exploit  this  opportunity in the future as a  result  of  its
strengths and experience in this arena.

In  contrast, Campo suffered this year due to an unanticipated
downturn  in  demand, particularly in the  sportswear  sector.
Recovery  is  slow,  but we are finalising plans  designed  to
accelerate an improvement in business performance.

Panhuizen
Panhuizen  has  been  adversely affected by  the  difficulties
experienced  in  the  European  printing  market,  which   has
resulted in lower sales and profitability.  However, it  still
retains its position as the quality supplier of screens to the
printing market, following a number of modest investments  and
technical  developments over the past year.   It  is  expected
that Panhuizen's profitability will improve as a result of  an
agreement recently implemented, whereby Panhuizen will  supply
an increasing proportion of the Group's screen requirements.

NEMESIS
It  has  been a year of change for Nemesis in that,  over  the
past  few months, we have appointed a new management  team  in
Italy.   The Prandoni family, from whom Leeds Group originally
purchased  Nemesis, had management contracts which expired  in
the  early part of 1999.  By mutual agreement these  were  not
renewed, allowing us the opportunity to bring in new blood  to
lead  Nemesis  in  what  remain difficult  market  conditions.
Improvements  in  manufacturing efficiency in  previous  years
have  provided Nemesis with world-class production  facilities
and  one  of the lowest cost bases in Europe.  These,  coupled
with improved routes to market, should enable Nemesis to begin
to deliver more positive results over the next few years.

LEASING
Leeds  Leasing  enjoyed another successful year,  and  matched
last year's record levels of profits and new business written,
despite  falling  interest rates and intensifying  competition
from  larger lenders seeking to enter the niche entertainment,
leisure and catering markets we serve.  December 1999 will see
the  retirement of Adrian Wardner who has led the  company  as
Managing  Director  throughout  the  seventeen  years  of  its
history.  We wish Adrian well in retirement, and thank him for
his  efforts which mean that his successor, John Blanchflower,
has inherited a robust base on which to build.  John has spent
his  whole  career  in  a  leasing environment  and  his  wide
experience, coupled with the Board's intent to pursue a policy
of  controlled growth, is expected to result in growth in  the
current  year  in both the range of products offered  and  the
markets in which we operate.

                              -5-


OUTLOOK
In  summary, whilst we face testing market conditions, we have
the benefit of diversity of businesses within the Group, which
provides  us  with  an advantage over many  companies  in  our
sector.   This  is  underpinned  by  a  solid  financial  base
creating a platform for future growth.

Following   the  strategic  review,  it  is  now  clear   that
structural  change is unavoidable if we are to deliver  future
success for our shareholders.  I am confident that the actions
we  intend to take over the next twelve months, combined  with
the strength and commitment of our management team, will place
the Group firmly on its road to recovery.


                              -6-

                      Preliminary Results
             for the year ended 30 September 1999


FINANCIAL REVIEW BY THE FINANCE DIRECTOR, MALCOLM WILSON
PROFIT & LOSS ACCOUNT
Turnover for the year, at £61.1m, was £12.5m (17%) below  that
achieved in the previous year.  Of this reduction, £2.5m arose
from  the closure last December of the Scott & Rhodes  branch,
while  £2.3m reflected the adverse translation impact  on  the
sales  of  the  Dutch and Italian subsidiaries caused  by  the
appreciation  in  the  year of Sterling  against  the  Guilder
(6.4%)   and   the  Lira  (6.6%).   Turnover  from  continuing
businesses at constant exchange rates thus fell by £7.7m (11%)
of  which  £2.3m arose in Holland (principally  in  the  Campo
business),  £2.0m  in  Italy,  and  £3.7m  in  the  UK  Dyeing
operations, partly as a result of lower wool prices.  Turnover
in  the UK Printing division and in Leeds Leasing increased by
£0.1m and £0.2m respectively.

The  Group  responded to this reduction in  sales  volumes  by
strict  control  of variable costs, but the increase  in  unit
fixed  costs at lower activity levels meant that gross margins
declined from 24% in 1998 to 23% in 1999.  Similarly, although
distribution  and  administrative expenses in  the  continuing
businesses  were below the level of last year,  this  was  not
sufficient to prevent the decline in operating profit,  before
exceptional items, from £6.4m to £3.5m, and operating  margins
from 8.7% to 5.8%.

Net  interest expense fell from £743,000 in 1998  to  £631,000
which  reflected lower interest rates and a level of net  debt
which  fell  throughout  the  year.   Interest  cover,  before
exceptional items, was 5.6 (1998:  8.6).

Exceptional items amounting to £7.6m were charged in the  year
in  respect  of  the  closure of Scott & Rhodes,  redundancies
around  the Group, and the reduction in the carrying value  of
certain assets.  These are dealt with in notes 9 and 10 to the
accounts.

The  effective rate of tax on Group profits before exceptional
items  increased to 39.8% (1998:  34.1%), as  a  result  of  a
sharp  increase  in  the effective tax  rate  in  Italy.   The
exceptional costs attracted tax relief of £0.7m.

Before  exceptional costs, basic earnings per share were  4.7p
(1998:  10.2p) with dividend cover of 1.6 (1998:  1.4).

CASH FLOW & NET DEBT
In  the  year  the Group generated £11.2m cash from  operating
activities which was more than three times the level  of  both
1998  operating  cash  flow and 1999 operating  profit  before
exceptional  items.  This reflected a reduction in  stocks  of
31%  and  the success in recovering cash following  the  fraud
which was described last year in the Chairman's Statement.



                              -7-


Additions  to  fixed  assets in the  year  were  £2.6m  (1998:
£2.6m)   and,  taking  into  account  the  change  in  capital
creditors, the cash expended on fixed assets amounted to £3.2m
(1998:  £4.1m).  Capital additions in both 1998 and 1999  were
substantially less than the Group's depreciation  charge,  and
the  directors consider that this is likely to continue in the
foreseeable future.

Net  debt  was  reduced in the year by £4.5m, from  £12.0m  to
£7.5m.  The directors are determined to maintain the focus  on
managing  debt  with  the twin objectives  of  minimising  the
interest burden on current activities and making possible bolt-
on  acquisitions to core businesses with minimum  recourse  to
unutilised facilities.

BALANCE SHEET
The  level of working capital was considerably reduced  during
the year.  The stock reduction referred to above was offset in
part  by  an  associated  reduction in  trade  creditors,  but
improved  debtor control resulted in trade debtors falling  by
appreciably more than the reduction in turnover.

Leeds  Leasing produced a strong performance in the  year  and
grew the debtor book by 19% to £6.3m, a level which represents
more than 80% of net Group debt.

Just  as  the Group's profits have proved more resilient  than
those  of most companies in the textile sector, so the balance
sheet remains relatively strong.  Although shareholders' funds
were  reduced  by £6.9m of post-tax exceptional items  in  the
year,  capital gearing at the year end was a modest 21% (1998:
28%).

TREASURY
The  Treasury  policy of the Group continues to  be  aimed  at
minimising the financial risk of exchange rate movements,  and
at  matching  the  funding requirement  in  a  cost  effective
fashion with a judicious combination of short and medium  term
debt.   It  is  not Group policy to hedge the  translation  of
profits  earned in overseas subsidiaries, nor to  hedge  their
balance  sheets  except to the extent that it is  possible  to
match   their   net   assets  with  foreign   currency   debt.
Transactional  exposures on sales and purchases arise  chiefly
in  the  European subsidiaries and are minimised by the  Group
policy requiring forward exchange contracts to be entered into
as sales are made, or orders for materials are placed.

The  major  part of the Group's debt consists of borrowing  in
Holland   and  Italy,  where  interest  rates  in  1999   were
considerably less than those of the UK.  The mix of fixed  and
floating  rate  debt is regularly reviewed,  as  is  the  debt
maturity profile.  At the year end, debt of £5.3m was at fixed
rates  averaging 4.4%, debt repayable between 12 and 24 months
was £3.9m, and debt payable between 2 and 5 years was £1.5m.



                              -8-


YEAR 2000 COMPLIANCE
The  Group  has  taken  the necessary  steps  to  ensure  that
computer  systems have Year 2000 compliance.  In the  UK,  the
accounting systems at Head Office and all branches  have  been
replaced at a capital cost of £225,000, while those in  Europe
have  been  modified  where necessary at modest  cost  charged
against  profit  in  1999.   A comprehensive  review  of  date
sensitive manufacturing equipment led to a programme  of  work
of  varying intensity at each of our branches, which for  some
time  now  have been accepting into their systems transactions
to  be  completed in the year 2000, and the directors have  no
reason   to   believe  that  any  potential  problems   remain
unresolved.

ECONOMIC & MONETARY UNION
Our European subsidiaries were well prepared for the launch of
the Euro in January 1999.  In the UK, all of our branches have
implemented new financial computer systems as the first  phase
of  a national programme to install fully integrated software.
These systems are capable of meeting the demands of any future
British  entry  to  the  single currency  mechanism,  and  any
further  costs  necessary  in this  context  will  be  charged
against profit as incurred.

                              -9-

Consolidated Profit And Loss Account
for the year ended 30 September 1999

                                                   1999                  1998
                                         Before                      
                                    Exceptional Exceptional       
                                          Items       Items    Total
                                           £000        £000    £000      £000
                                                                    
Turnover                                 61,057           -   61,057   73,553
Cost of sales                           (46,997)          -  (46,997) (55,909)  
                                       -------      ------  -------  -------
                                    
Gross profit                             14,060           -   14,060   17,644
Distribution costs                       (1,158)          -   (1,158)  (1,436)
Administrative expenses                  (9,392)     (6,197) (15,589)  (9,826)
                                        -------      ------  -------   ------

Trading (loss) / profit                   3,510      (6,197)  (2,687)   6,382
Other operating income                        4           -        4       13
                                        -------      ------   ------   ------ 

Operating (loss) / profit                 3,514      (6,197)  (2,683)   6,395
Termination of a business operation           -      (1,384)  (1,384)       -
                                        -------      ------   ------   ------
                                       
(Loss) / profit before interest           3,514      (7,581)  (4,067)   6,395
Interest receivable and similar income       58          -        58      260
Interest payable and similar charges       (689)         -      (689)  (1,003)
                                        -------      ------   ------   -------
                                  
(Loss) / profit on ordinary activities
before taxation                           2,883      (7,581)  (4,698)   5,652
Tax on (loss) / profit on ordinary
activities                               (1,148)        708     (440)  (1,928)
                                        -------      ------   ------   -------
(Loss) / profit on ordinary                                          
activities after taxation for
the financial year                        1,735      (6,873)  (5,138)   3,724
Equity dividends paid and proposed       (1,098)          -   (1,098)  (2,562)
                                        -------      ------   ------   ------

(Unrecovered loss)/ retained profit       
for the financial year                      637      (6,873)  (6,236)   1,162   
                                       =======      ======   ======   ======

Basic (loss) / earnings per ordinay share   4.7p      (18.7)p  (14.0)p   10.2p
                                        =======      ======   ======    =====

Fully diluted (loss) / earnings per 
ordinary share                              4.7p      (18.7)p  (14.0)p   10.2p
                                        =======      ======   ======    ======

All  the Group's results are derived from continuing operations during the
current and preceding year.

Consolidated Statement Of Total Recognised Gains And Losses                     
                                                         1999          1998
                                                          £000          £000
                                                                    
(Loss) / profit for the financial year                  (5,138)        3,724
Foreign currency translation differences                  (844)          (15)
                                                        ------        ------
Total recognised gains and losses relating to the year  (5,982)        3,709
                                                        ======        ======
                                                    
                             -10-

Consolidated Balance Sheet
at 30 September 1999
                                                          1999          1998
                                                          £000          £000
Fixed assets                                                 
Tangible assets                                         27,243        34,926
                                                        ------        ------  

Current assets                                               
Stocks                                                   6,965        10,156
Debtors                                                 15,575        23,465
Finance lease debtors                                    6,329         5,325
Total debtors                                           21,904        28,790
Cash at bank and in hand                                 2,809         1,918
                                                        ------        ------
                                                        31,678        40,864

Creditors: amounts falling due within one year         (16,524)      (28,378)
                                                        ------        ------

Net current assets                                      15,154        12,486
Of which:                                                    
 due within one year                                    12,163         9,475
 debtors due after more than one year                    2,991         3,011
                                                        ------        ------
Total assets less current liabilities                   42,397        47,412
Creditors: amounts falling                                          
 due aftger more than one year                          (5,489)       (2,887)
Provisions for liabilities and charges                  (1,740)       (1,777)

Accruals and deferred income                               (20)         (520)
                                                        ------        ------   
Net assets                                              35,148        42,228
                                                        ======        ======
Capital and reserves                                         
Called up equity share capital                           9,150         9,150
Share premium account                                   15,832        15,832
Profit and loss account                                 10,166        17,246
                                                       -------        ------
Equity shareholders' funds                              35,148        42,228
                                                       =======        ======
                             -11-

Consolidated Cash Flow Statement
for the year ended 30 September 1999
                                                          1999          1998
                                                          £000          £000
                                                           
Cash inflow from operating activities                   11,193         2,967
Return on investments and servicing           
of finance                                                (642)         (743)
Taxation                                                (1,660)       (2,293)
Capital expenditure                                     (2,963)       (3,107)
Equity dividends paid                                   (2,050)       (2,562)
Cash inflow / (outflow) before financing                 3,878        (5,738)
Financing                                                2,920          (554)
                                                        ------        ------   
Increase / (decrease) in cash in the year                6,798        (6,292)
                                                        ======        ======

Reconciliation Of Net Cash Flow To Movement In Net Debt

                                                          1999          1998
                                                          £000          £000
                                                            
Increase / (decrease) in cash in the period              6,798        (6,292)
Cash (inflow) / outflow from increase in
debt and lease financing                                (2,920)          554
                                                        ------        ------
                                                 
Change in net debt resulting from cash flows             3,878        (5,738)
Translation difference                                     654            12
                                                        ------        ------
                                          
Movement in net debt                                     4,532        (5,726)
Net debt at beginning of the year                      (12,035)       (6,309)
                                                       -------        ------
                                              
Net debt at end of the year                             (7,503)      (12,035)
                                                       =======       =======
                                           
                                           
                             -12-


                             Notes

1.   A  final dividend of 2.0p per share is proposed, making a
     total of 3.0p for the year (1998: 7.0p).  If approved, this
     will  be paid on 25 January 2000 to shareholders  on  the
     Register on 24 December 1999.

2.   Exceptional  items of £7.6m were charged in the  year  in
     respect of:

                                                     £m
     Impairment of tangible fixed assets            5.0
     Termination of a business operation            1.4
     Amounts written off pre-paid screens           0.5
     Redundancy and other costs                     0.7
                                               ________
                                                    7.6
                                                =======
     
     These  exceptional  items resulted in  cash  outflows  of
     £1.3m  before  taking  into account  the  associated  tax
     credit of £0.7m.

3.   The  financial information set out on Pages 9 to 11  does
     not constitute the Company's statutory accounts for the year
     ended 30 September 1999 or the year ended 30 September 1998
     but is derived from those accounts.

4.   Statutory  accounts for the year ended 30 September  1998
     have been delivered to the Registrar of Companies, and those
     for  the  year ended 30 September 1999 will be  delivered
     following the Company's Annual General Meeting.  The auditors
     have  reported  on  those accounts;  their  reports  were
     unqualified and did not contain statements under  Section
     237(2) or (3) of the Companies Act 1985.

5.   Full accounts will be sent to shareholders on 23 December
     1999.   Further  copies will then be available  from  the
     Company's Registered Office:  Carter House, Guiseley, Leeds
     LS20 8NH.