Interim Results

Leeds Group PLC
17 May 2001

Issued on behalf of Leeds Group plc

Date: Thursday, 17 May 2001     Embargoed: 10.05am




                               Leeds Group plc

                               Interim Results

                     for the six months to 31 March 2001




STATEMENT BY THE CHAIRMAN, ROBERT WADE

At our AGM in January, I warned of the difficult trading conditions facing our
UK Printing Division. These have deteriorated, and the downturn we have
experienced in Group profitability is a direct result of the losses at Walsden
and Strines. Profit before tax for the first half of this financial year is £
154,000, compared with £700,000 last year after exceptional costs of £
1,233,000.


In response to this situation, and as part of our planned strategy, we have
today announced the sale of the Strines business and our proposal to close the
Walsden operation, subject to consultation. These prompt actions will stem the
losses experienced in the first half, provide the opportunity to realise
surplus assets, and allow the Group to deliver improved levels of performance
in the second half. The remainder of our Textile activities has traded
satisfactorily in adverse conditions and, in most businesses, profits are
greater than last year.


Pre-tax profit at Leeds Leasing was 35% greater than in the first half last
year. During the past three years, gross rental income has grown at a compound
annual rate of 32%, and the prospects for further growth remain encouraging.
Arrangements have been made with a number of banks to finance the growth of
Leeds Leasing, and this has enabled the company to widen its scope of
activities.


While the Directors are satisfied with the prospects of the remaining Textile
subsidiaries, we feel it is unlikely that a small Textile company will command
an adequate market rating in the publicly quoted sector. Accordingly, after
completing a thorough review of our options, the Board believes that
Shareholders' interests are best served by taking the opportunities that may
arise for realising our investments in Textile Manufacturing, and by
concentrating our efforts on the growth of Leeds Leasing.


As our Textile Manufacturing assets are sold, initial proceeds will be used to
reduce debt, beyond which it may be possible to return funds to Shareholders.
We believe that a company principally focused on Financial Services with a
record and prospects of sustained growth will attract more interest from both
institutional and private investors. These changes will inevitably take time,
and the Directors are anxious to protect the interests both of Shareholders
and of the Employees who have served the Group well. Any major disposal will,
of course, require the approval of Shareholders, whom I will ensure are kept
fully informed of developments. The Board is confident that this new direction
for the Group will enhance Shareholder value and encourage growth in
profitability during the years ahead.


The Board has recommended an interim dividend of 1p (2000 - 1p) to be paid on
3 July 2001 to Shareholders on the Register as at 15 June 2001.

ENQUIRIES

Chris J Marsden, Chief Executive     Fiona Tooley

Leeds Group plc     Citigate Dewe Rogerson

Tel: [phone]     Tel: [phone]

Mobile: [phone]


                                     -2-




                               Leeds Group plc

                               Interim Results

                     for the six months to 31 March 2001



                      Six months to       Six months to        Twelve months to

                      31 March 2001       31 March 2000       30 September 2000

                              £'000               £'000                   £'000

Turnover
Existing activities          33,722              32,231                  61,281
Divested businesses               -               2,458                   3,257
                             33,722              34,689                  64,538

Cost of sales              (26,809)            (26,022)                (49,169)
Gross profit                 6,913               8,667                  15,369

                              
Distribution costs            (966)               (973)                 (1,863)

Administrative              (4,993)             (6,705)                (15,264)
expenses
Operating profit/
(loss)
Existing activities             954               2,252                   3,827
Divested businesses               -                (30)                      33
                                954               2,222                   3,860
Exceptional items                 -             (1,233)                 (5,618)

                                954                 989                 (1,758)

Loss on sale or
termination of a                  -                   -                 (1,236)

business operation
Profit/(loss) before
interest                        954                 989                 (2,994)

Net interest payable          (800)               (289)                   (706)
Profit/(loss) before
taxation                        154                 700                 (3,700)

Taxation                      (132)               (251)                   (524)
Profit/(loss) after
taxation                         22                 449                 (4,224)

Dividends                     (366)               (366)                 (1,098)
Transfer (from)/to
reserves                      (344)                  83                 (5,322)
Earnings/(loss) per
share
before exceptional             0.1p                3.5p                    5.2p
items
exceptional items                 -              (2.3p)                 (16.8p)
after exceptional              0.1p                1.2p                 (11.6p)
items
Diluted earnings/
(loss) per share               0.1p                1.2p                 (11.5p)

Dividend per share             1.0p                1.0p                    3.0p

                                     -3-




                               Leeds Group plc

                               Interim Results

                             GROUP BALANCE SHEET



                                     31 March       31 March                30
                                         2001           2000         September
                                                                          2000
                                        £'000          £'000
                                                                         £'000

Fixed assets
Intangible assets                       1,167          1,261             1,150
Tangible assets                        24,913         26,282            24,512

                                       26,080         27,543            25,662

Current assets
Stocks                                 12,563         10,583            12,773
Debtors                                19,094         21,018            16,972
Finance lease debtors                  13,522          8,840            12,352
Cash at bank and in hand                  266          1,154             1,714

                                       45,445         41,595            43,811

Creditors: amounts falling due       (31,105)       (29,568)          (28,979)
within one year
Net current assets                     14,340         12,027            14,832
Of which:
due within one year                     6,737          7,279             7,736
due after more than one year            7,603          4,748             7,096

Total assets less current              40,420         39,570            40,494
liabilities
Creditors: amounts falling due after  (7,226)        (3,526)           (7,456)
more than one year
Provision for liabilities and         (1,896)        (1,586)           (1,820)
charges
Deferred income                          (50)           (36)              (56)

Net assets                             31,248         34,422            31,162

Share capital and reserves:
Share capital                           9,150          9,150             9,150
Share premium                          15,832         15,832            15,832
Profit and loss account                 6,266          9,440             6,180

Equity shareholders' funds             31,248         34,422            31,162

Reconciliation of movements in shareholders' funds:
Result for the period                   (344)             83           (5,322)
Goodwill written back                       -              -             2,266
Exchange differences                      430          (809)             (930)

Net transfer to/(from) shareholders'       86          (726)           (3,986)
funds
Shareholders' funds at beginning of    31,162         35,148            35,148
the period
Shareholders' funds at end of the      31,248         34,422            31,162
period



                                     -4-




                               Leeds Group plc

                               Interim Results

                          GROUP CASH FLOW STATEMENT



                                         Six             Six             Twelve
                                   months to       months to          months to

                                    31 March        31 March       30 September
                                        2001            2000               2000

                                       £'000           £'000              £'000

Net cash outflow from operating        (278)         (3,791)            (6,604)
activities
Returns on investments and             (800)           (291)              (670)
servicing of finance
Taxation                               (248)           (228)               (16)

Capital expenditure and financial    (2,070)         (1,181)            (3,371)
investment
Acquisitions and disposals (net of
cash and cash                            540         (2,778)              (834)
equivalents)
Equity dividends paid                  (732)           (732)            (1,098)
Net cash outflow                     (3,588)         (9,001)           (12,593)
                                     

Translation difference                 (442)             687                733

Loan acquired with subsidiary              -         (1,079)            (1,079)
Movement in net debt                 (4,030)         (9,393)           (12,939)
                                     

Net debt at beginning of the        (20,442)         (7,503)            (7,503)
period
Net debt at the end of the period   (24,472)        (16,896)           (20,442)
                                    



                                     Leasing        Textiles              Total

                                       £'000           £'000              £'000
As at 31 March 2001
Trading capital employed              12,520          43,200             55,720

Interest bearing net debt           (10,608)        (13,864)           (24,472)
Net assets                            1,912          29,336             31,248
                                       
Net debt as a percentage of:
trading capital employed               84.7%           32.1%              43.9%
net assets                            554.8%           47.3%              78.3%
                                      

                                     -5-




                               Leeds Group plc

                               Interim Results

                                    NOTES





        1.     The interim results which are not audited have been prepared on
        the basis of the accounting policies set out in the 2000 Annual
        Report. The figures for the year ended 30 September 2000 have been
        abridged from the Group's full accounts which have been filed with the
        Registrar of Companies and which the Company's auditors gave an
        unqualified report.


        2.     Earnings per share have been calculated on an average of
        36,598,603 (2000: 36,598,603) ordinary shares of 25p in issue during
        the period.


        3.     The interim dividend is payable on 36,598,603 ordinary shares.


        4.     The effect of the announcement made on 17 May 2001 with regard
        to the closure of the Walsden operation and the sale of the Strines
        operation has not been reflected in these interim accounts.


        5.     The table below sets out a segmental analysis of the Group's
        operations.


                                   Turnover           Profit/(loss) before tax
                         31 March 31 March         30     31     31         30
                                            September  March  March  September
                             2001     2000
                                                 2000   2001   2000       2000
                            £'000    £'000
                                                £'000  £'000  £'000      £'000

UK Dyeing                   6,107    6,062     12,590    682    608      1,637

UK Printing                 7,425    9,145     16,934 (1,482)    107      (948)

Nemesis Printing           10,607   10,630     16,027    747    664        845

Import & Distribution       8,171    5,390     13,470    256    432      1,080
Textile operations         32,310   31,227     59,021    203  1,811      2,614

                           
Leasing                     1,412    1,004      2,260    751    441      1,213

                           33,722   32,231     61,281    954  2,252      3,827

Divested businesses             -    2,458      3,257      -   (30)         33

                           33,722   34,689     64,538    954  2,222      3,860

Exceptional items                                          - (1,233)    (5,618)
                                                          

Loss on sale or termination of a business                  -      -    (1,236)
operation
Net interest payable
Textiles                                               (428)  (129)      (266)

Leasing                                                (372)  (160)      (440)


                                                       (800)  (289)      (706)
                                                       
Profit/(loss) before tax                                 154    700    (3,700)