Interim Results

Leeds Group PLC
10 May 2007


Issued on behalf of Leeds Group plc                            Embargoed: 7.30am

Date: Thursday, 10 May 2007


                                Leeds Group plc
            Interim Results for the six months ended 31st March 2007

STATEMENT BY THE GROUP CHAIRMAN, EWEN WIGLEY

Group Results

I am pleased to report that the Group's profit before tax for the six months
ended 31 March 2007 was £350,000. This compares with a profit before tax of
£493,000 made by the continuing business in the corresponding period of last
year, which reflected a strong six-month performance from the Hemmers business.

Trading in the Hemmers business, which made a profit before tax of £304,000
(2006: £511,000), continued at the same levels as in the second half of the last
financial year. The Group's net funds increased by £1,124,000, principally from
a reduction in working capital at Hemmers. This strong performance leaves the
Group with net funds of £3,907,000, equivalent to 11.4 pence per share
(excluding shares held in treasury).

In the six months ended 31 March 2007, the Group purchased a total of 515,000
ordinary shares at a total cost of £112,000 under its share buy-back programme.
As a result, the Group now holds 2,355,000 ordinary shares in treasury
representing 6.4% of the total ordinary shares in issue.

Discontinued Business

In the AGM statement in March 2007 the Chairman noted that Leeds City Council
had resolved to register some five acres of land in Yeadon, owned by Leeds
Group, as a town or village green in line with a recommendation to that effect
contained in a report by an independent inspector. Having studied the
independent inspector's report carefully, and consulted with its advisers, the
Board has decided to challenge that decision and is taking the appropriate steps
to do so.

When the Company sold Leeds Leasing in October 2005, £500,000 of the sale
proceeds were placed in an escrow account. I am pleased to report that the
deadline for claims under the warranties, other than the tax warranties, given
in the sale and purchase agreement has passed without a claim being made and
consequently the monies have been released to Leeds Group, together with accrued
interest. These funds are included in the cash balance of £4,701,000 stated in
the balance sheet.

Board Changes

Following the Annual General Meeting, Vin Murria stepped down from the Board and
I took over as Chairman. Peter Gyllenhammar, a major shareholder in the Company
has joined the Board, which therefore continues to comprise three Non-Executive
Directors.

Strategy & Outlook

We remain confident about the prospects of our continuing operation, where
Hemmers should be able to benefit from competitors leaving the market. The Board
will continue to seek out appropriate opportunities to reinvest the cash
resources, where it considers it is prudent to do so. The Directors have not
declared an interim dividend, but continue to consider the dividend policy in
the light of the Group's performance and the investment opportunities. In the
meantime, the Group will continue to purchase its own shares under the share
buy-back scheme, which the Board believe is for the benefit of all shareholders.

Enquiries:

Leeds Group plc                       Citigate Dewe Rogerson                Seymour Pierce
Ewen Wigley, Chairman                 Fiona Tooley                          Sarah Wharry
Tel: [phone] or 07815 134466    Tel: [phone] or 07785 703523    Tel: [phone]


                                      -2-

                                Leeds Group plc
                                Interim Results
                      Consolidated Profit and Loss Account

                Unaudited -         Unaudited - six months to                 Audited - year to
              six months to              31 March 2006                        30 September 2006
                31 March
                  2007
               Continuing   Continuing   Discontinued      Total   Continuing   Discontinued       Total
               operations   operations     operations       £000   operations     operations        £000
                     £000         £000           £000                    £000           £000

Turnover            8,350        8,755            255      9,010       16,320            255      16,575

Cost of            (6,304)      (6,569)           (24)    (6,593)     (12,546)           (24)    (12,570)
sales
             --------------------------------------------------------------------------------------------
Gross profit        2,046        2,186            231      2,417        3,774            231       4,005

Distribution
costs                (546)        (468)             -       (468)        (874)             -        (874)

Administrative
expenses           (1,223)      (1,253)          (125)    (1,378)      (2,255)          (125)     (2,380)
             --------------------------------------------------------------------------------------------
Operating
profit                277          465            106        571          645            106         751

Exceptional
loss on sale
of a business
operation               -            -           (837)      (837)           -           (838)       (838)
             --------------------------------------------------------------------------------------------
Profit/(loss)
before
interest              277          465           (731)      (266)         645           (732)        (87)
                                 ----------------------                 ---------------------
Net interest
receivable/(payable)   73                                    (57)                                     (8)
                  ---------                                -------                                -------
Profit/(loss)
on ordinary
activities
before
taxation              350                                   (323)                                    (95)

Taxation on
profit/(loss)
on ordinary
activities           (147)                                  (238)                                   (352)
                  ---------                                -------                                 -------
Profit/(loss)
for the period        203                                   (561)                                   (447)
                  ---------                                -------                                 -------

Consolidated statement of total recognised gains and losses

Profit/(loss)
for the period       203                                    (561)                                   (447)

Foreign
currency
translation
differences           13                                     124                                     (33)
                 ---------                                 -------                                 -------
Total
recognised
gains and
losses for the
period               216                                    (437)                                   (480)
                 ---------                                 -------                                 -------

Basic and diluted earnings/(loss) per share from continuing and discontinued activities

before
exceptional
items                0.6p                                    0.7p                                    1.1p

exceptional
items                  -                                    (2.3)p                                  (2.4)p
                 ---------                                -------                                   -------
after
exceptional
items                0.6p                                   (1.6)p                                  (1.3)p
                 ---------                                -------                                   -------

Basic and diluted earnings/(loss) per share from continuing activities

before
exceptional
items                0.6p                                    0.7p                                     1.0p

exceptional            -                                      -                                         -
items
                  ---------                                -------                                  -------
after
exceptional
items                0.6p                                     0.7p                                    1.0p
                 ---------                                 -------                                 -------

                                      -3-

                                Leeds Group plc
                                Interim Results
                           Consolidated Balance Sheet

                                      Unaudited     Unaudited          Audited
                                          As at         As at            As at
                                     31st March    31st March   30th September
                                           2007          2006             2006
                                           £000          £000             £000
Fixed assets

Intangible
assets                                      712           825              757

Tangible
assets                                      259           303              245
                                       ----------    ----------      -----------
                                            971         1,128            1,002

Current assets

Stock                                     3,620         4,297            4,552
                                       ----------    ----------      -----------
Debtors                                   3,562         3,646            3,990

Deferred
taxation                                      -            52                -
                                       ----------    ----------      -----------

Total debtors                             3,562         3,698            3,990

Cash at bank
and in hand                               4,701         4,878            4,706
                                       ----------    ----------      -----------
                                         11,883        12,873           13,248

Creditors:
amounts
falling due
within one
year                                     (1,875)       (2,955)          (3,375)
                                       ----------    ----------      -----------
Net current assets                       10,008         9,918            9,873

Of which:
                                       ----------    ----------      -----------
due within one year                      10,008         9,866            9,873
due after more
than one year                                 -            52                -
                                       ----------    ----------      -----------

                                       ----------    ----------      -----------
Total assets less current
liabilities                              10,979        11,046           10,875

Creditors: amounts falling due after          -             -                -
more than one year                     ----------    ----------      -----------

Net assets                               10,979        11,046           10,875
                                       ==========    ==========      ===========

Share capital and reserves

Called up
equity share
capital                                   4,392         4,392            4,392

Profit and
loss account                              6,587         6,654            6,483
                                       ----------    ----------      -----------
Equity
shareholders'
funds                                    10,979        11,046           10,875
                                       ==========    ==========      ===========

Reconciliation of movements in equity shareholders' funds

Profit/(loss)
for the period                              203          (561)            (447)

Purchase of
own shares for
treasury                                   (112)         (161)            (289)

Foreign
currency
translation
differences                                  13           124              (33)
                                       ----------    ----------      -----------
Net transfer
to/(from)
equity
shareholders'
funds                                       104          (598)            (769)

Equity
shareholders'
funds at
beginning of
the period                               10,875        11,644           11,644
                                       ----------    ----------      -----------
Equity
shareholders'
funds at end
of the period                            10,979        11,046           10,875
                                       ==========    ==========      ===========

                                      -4-

                                Leeds Group plc
                                Interim Results
                        Consolidated Cash Flow Statement

                       Unaudited            Unaudited                  Audited
                   Six months to        Six months to         Twelve months to
                 31st March 2007      31st March 2006      30th September 2006
                            £000                 £000                     £000
Cash inflow
from operating
activities                 1,564                  818                      324

Returns on
investments
and servicing
of finance                    73                  (57)                      (8)

Taxation                    (343)                (361)                    (431)

Capital
expenditure
and financial
investment                   (54)                 (23)                     (18)

Acquisitions
and disposals                  -                4,847                    5,001
                        ----------           ----------              -----------
Net cash
inflow before
financing                  1,240                5,224                    4,868

Financing                 (1,128)                (939)                    (435)
                        ----------           ----------              -----------
Increase in
cash in the
period                       112                4,285                    4,433
                        ==========           ==========              ===========

Reconciliation of net cash flow to movement in net debt

Increase in
cash in the
period                       112                4,285                    4,433

Net decrease
in loans                   1,016                  778                      146
                        ----------           ----------              -----------
Change in net
debt resulting
from cash
flows                      1,128                5,063                    4,579

Net debt
disposed of
with
subsidiary                     -               14,726                   14,571

Foreign
currency
translation
differences                   (4)                 (56)                      15
                        ----------           ----------              -----------
Movement in
net debt in
the period                 1,124               19,733                   19,165

Net
funds/(debt)
at the
beginning of
the period                 2,783              (16,382)                 (16,382)
                        ----------           ----------              -----------
Net funds at
the end of the
period                     3,907                3,351                    2,783
                        ==========           ==========               ==========

Reconciliation of operating profit to net cash
inflow/(outflow) from operating activities

Operating
profit                       277                  571                      751

Depreciation
of fixed
assets                        41                   55                      103

Amortisation
of goodwill                   47                   48                       91

Profit on sale
of tangible
fixed assets                   -                    -                       (4)

(Increase)/dec
rease in
stocks                       942                  (30)                    (407)

Decrease in
debtors                      436                  600                      136

(Decrease) in
creditors                   (179)                (396)                    (316)

Increase in
finance lease
debtors                        -                  (30)                     (30)
                        ----------           ----------              -----------
Net cash
inflow from
operating
activities                 1,564                  818                      324
                        ==========           ==========              ===========

                                      -5-

                                Leeds Group plc
                                Interim Results
                             Notes to the accounts

1. The financial information in this Report does not constitute statutory
   accounts within the meaning of Section 240 of the Companies Act 1985. The
   interim accounts for the six months ended 31st March 2007 and 31st March 2006
   are unaudited. The comparative figures for the financial year ended 30th
   September 2006 are not the Group's statutory accounts, but have been extracted
   from those accounts, which have been filed with the Registrar of Companies and
   on which the Group's auditor gave an unqualified report that did not include
   reference to any matters to which the auditors drew attention by way of emphasis
   without qualifying their report and did not contain statements under Section 237
   (2) or (3) of the Companies Act 1985. The interim accounts have been prepared on
   the basis of the accounting policies set out in the 2006 Annual Report.

2. Earnings per share have been calculated on an average of 34,669,647 (2006:
   36,061,790) ordinary shares of 12 pence each in issue during the period.

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

                            Turnover                Profit before taxation
                   Six       Six      Twelve       Six       Six      Twelve
                months    months   months to    months    months   months to
                    to        to                    to        to
                  31st      31st        30th      31st      31st        30th
                 March     March   September     March     March   September
                  2007      2006        2006      2007      2006        2006
                  £000      £000        £000      £000      £000        £000

Hemmers-Itex     8,350     8,755      16,320       393       612         916

Central              -         -           -      (116)     (147)       (271)
costs
            -------------------------------------------------------------------
Continuing       8,350     8,755      16,320       277       465         645
operations

Leeds                -       255         255         -       106         106
Leasing
             ------------------------------------------------------------------
                 8,350     9,010      16,575       277       571         751
             ==================================

Exceptional
loss on sale
of Leeds
Leasing                                              -      (837)       (838)
                                               --------------------------------
Profit/(loss)
before
interest                                           277      (266)        (87)

Interest
                                               --------------------------------
Hemmers-Itex                                       (89)     (101)       (204)

Holding
companies                                          162       129         281

Leeds Leasing                                        -       (85)        (85)
                                               --------------------------------

Net interest
payable                                             73       (57)         (8)
                                               --------------------------------

Profit/(loss)
before
taxation                                           350      (323)        (95)
                                               ================================


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