Osborne & Little PLC

Interim Results

Osborne & Little PLC
23 November 2000

                             OSBORNE & LITTLE PLC

                               Interim Results

                  for the half year ended 30 September 2000


Chairman's Statement


Financial Overview

Profit before tax was £2,310,000, down 13% on the previous period 
(£2,640,000), whilst earnings per share were down 11% at 23.4p (1999 - 26.3p).

Turnover was up 8% at £20.0 million (1999 - £18.5 million); approximately half
of this increase was due to US dollar currency translation.

As our cash balances remain healthy we have decided to maintain the dividend
at 13p per share. This will be paid on 17 January 2001 to shareholders on the
register at close of business on 15 December 2000.

The principal reasons for the decline in profits were in respect of capital
and initial start-up costs of two new USA showrooms, additional payroll,
promotional and advertising costs in both the UK and the USA, and the weakness
of the Euro affecting our European markets.

Whilst the strengthening of the US dollar against sterling is beneficial for
us in the medium to long term, our policy, which we believe to be prudent, of
covering the exposure with forward contracts has meant that we have not
benefited as much as if we had no cover.

On 23 October, 2000, we moved from a full listing on the London Stock Exchange
to the Alternative Investment Market. The principal objective of the move was
that the Company should continue to enhance shareholder value through the
buying in of shares. This would not have been possible under LSE regulations,
which require a free float of at least 25%, a limit which the Company has
almost reached. There is no such restriction on AIM. In the course of the
first six months we purchased, and cancelled 128,000 of our own shares.

Brief comments on our principal markets follow:


North America

Sales were ahead 16% (8% in dollars) at £10.3 million (1999 - £8.9 million).
This market now represents 52% of total Group sales.

In July we opened a new, wholly owned showroom in San Francisco and in April,
in conjunction with the local agent, a new showroom in Boston. There have been
sizeable start-up costs associated with both these showrooms, but we are
confident that the investment will bring benefits in the near future.

United Kingdom

Sales in the UK were marginally up at £6.3 million (1999 - £6.2 million),
representing 32% of total Group sales. Although demand for interior
furnishings remains weak, we have increased our spend on advertising and
promotion as we believe it is important to maintain market leadership.


Rest of the World

Sales to the rest of the world, at £3.3 million (1999 - £3.4 million), were
down 3% over the previous period. This should be seen in the context of a
decline in the Euro against sterling over this period.

We are in the process of renovating and updating our own showrooms, and those
of our agents, throughout Europe and we are confident that the more
contemporary look will encourage an increase in sales.

Current Trading and Prospects

There is little change to the patterns of trading in the first few weeks of
the second half.


Sir Peter Osborne Bt

Chairman


23 November 2000



Enquiries

Osborne & Little plc 020 8675 2255

Sir Peter Osborne (Chairman)

Peter Soar (Finance Director)




UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

for the half year ended 30 September 2000
                                            Half year      Half year
                                                ended          ended      Year
                                                                         ended
                                         30 September   30 September
                                                 2000           1999  31 March

                                                                          2000
                                                 £000           £000      £000
Turnover                                       19,951         18,501    39,325
Cost of sales                                 (8,201)        (7,620)  (16,498)
Gross profit                                   11,750         10,881    22,827
Operating profit                                2,217          2,568     5,353
Net interest receivable                            93             72       176
Profit on ordinary activities before            2,310          2,640     5,529
taxation
Taxation on profit on ordinary                  (859)        (1,002)   (1,996)
activities
Profit on ordinary activities after             1,451          1,638     3,533
taxation
Dividends                                       (793)          (810)   (2,929)
Retained profit for the year                      658            828       604
Earnings per share                             23.43p         26.29p    56.70p
Diluted earnings per share                     22.83p         25.70p    55.35p
Dividends per share - ordinary                    13p            13p       32p
Dividends per share - special                       -              -       15p
                                                  13p            13p       47p

All activity has arisen from continuing operations.


There is no material difference between the profit on ordinary activities
before taxation and the retained profit for the year stated above and their
historical cost equivalents.


ABRIDGED UNAUDITED CONSOLIDATED BALANCE SHEET

as at 30 September 2000
                                           30 September   30 September      31
                                                   2000           1999   March

                                                                          2000
                                                   £000           £000    £000
Fixed assets                                      4,354          4,220   4,067
Current assets
Stocks and work in progress                       9,166          7,509   7,218
Debtors: amounts falling due within one           5,843          4,537   6,125
year
Cash at bank and in hand                          2,070          4,255   5,429
                                                 17,079         16,301  18,772
Creditors: amounts falling due within             8,866          8,001  10,525
one year
Net current assets                                8,213          8,300   8,247
Equity shareholders' funds                       12,567         12,520  12,314






ABRIDGED UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

for the half year ended 30 September 2000
                                             Half year      Half year
                                                 ended          ended      Year
                                                                          ended
                                          30 September   30 September
                                                  2000           1999  31 March

                                                                           2000
                                                  £000           £000      £000
Cash flow from operating activities                751          3,164     6,689
Returns on investments and servicing of             93             72       176
finance
Taxation                                         (804)          (696)   (1,963)
Capital expenditure                              (816)          (684)   (1,059)
Equity dividends paid                          (2,119)        (1,121)   (1,931)
Purchase of own shares                           (451)              -         -
(Decrease) /increase in cash                   (3,346)            735     1,912

UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the half year ended 30 September 2000
                                                   Half year  Half year
                                                       ended      ended    Year
                                                                          ended
                                                30 September         30
                                                        2000  September      31
                                                                          March
                                                                   1999
                                                                           2000
                                                        £000       £000    £000
Profit for the year                                    1,451      1,638   3,533
Currency translation differences on foreign
currency net investments                                  47       (25)     (7)
Total recognised gains and losses                      1,498      1,613   3,526



NOTES

30 September 2000

1.     Taxation


        The tax charge for the half year ended 30 September 2000 has been
        based on the estimated tax rate for the full year of 37.2% (1999 -
        38.0%)


2.     Earnings per share


        Basic earnings per share is calculated using the profit on ordinary
        activities after tax and the weighted average number of ordinary
        shares in issue during the period. For diluted earnings per share the
        weighted average number of ordinary shares is adjusted to assume
        conversion of all dilutive potential ordinary shares. Full details are
        given below:

                                    2000                        1999
                     Earnings               Per Earnings              Per share
                               Number of  share            Number of     amount
                            £     shares               £     shares
                                         amount
Basic earnings per  1,451,000  6,192,632 23.43p 1,638,000  6,230,965     26.29p
share
Effect of dilutive
securities:
Options                     -    162,000 (0.60)p        -    143,393    (0.59)p
                                          
Diluted earnings 
per                 1,451,000  6,354,632 22.83p 1,638,000  6,374,358     25.70p
share


3.     RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS

                                             Half year      Half year
                                                 ended          ended      Year
                                                                          ended
                                          30 September   30 September
                                                  2000           1999  31 March

                                                                           2000
                                                  £000           £000      £000
Operating profit                                 2,217          2,568     5,353
Depreciation charges                               571            484     1,005
Loss/ (profit) on sale of tangible                  18           (22)         7
fixed assets
(Increase)/ decease in stocks                  (1,948)            208       499
Decrease/ (increase) in debtors                    282            659     (929)
(Decrease)/ increase in creditors                (389)          (733)       754
Net cash inflow from operating                     751          3,164     6,689
activities


     There was a £13,000 exchange loss affecting the movement in cash.


4.   PREPARATION OF INTERIM FINANCIAL INFORMATION


        The financial information set out herein has been prepared using
        accounting policies consistent with the previous year, but does not
        comprise full financial statements within the meaning of the Companies
        Act 1985 and has not been audited. The full year comparatives were
        extracted from the full Group Accounts which received an unqualifed
        audit report and have been delivered to the Registrar of Companies.



5.   INTERIM REPORT


        Copies of this Interim Report were despatched to shareholders on 23
        November 2000 and are available from the Company Secretary at the
        registered office of Osborne & Little plc at:


                         49 Temperley Road, London, SW12 8QE

                                Tel:     020 8675 2255

                                Fax:     020 8772 9200

                          Email: [email protected]