Orchard Furniture

Interim Results

Orchard Furniture PLC
25 April 2001


                            ORCHARD FURNITURE PLC

                          GROUP INTERIM RESULTS FOR

                      SIX MONTHS ENDED 31 DECEMBER 2000


CHAIRMAN'S STATEMENT


The results for the six months to 31 December 2000 show a profit before tax of
£214,000. The profit reflects the benefit of interest receivable on the
Company's cash balances, which are in excess of £15m, and has been achieved
after taking account of exceptional charges of £116,000.

As shareholders are aware, Orchard is a cash shell with no business. The Board
has continued to evaluate potential reverse take-over candidates, and will
report to shareholders at the appropriate time.


A. T. Lawson-Cruttenden
CHAIRMAN

20 March 2001


PROFIT AND LOSS ACCOUNT

                       Notes   6 months ended     6 months ended      Year ended
                                     31.12.00           31.12.99        30.06.00
                                  (unaudited)        (unaudited)       (audited)
                                         £000               £000            £000

TURNOVER                                    -                  -               -

Operating Costs                         (201)              (114)            (97)
Other operating income                      -                  -              92
                                       ______             ______          ______

Operating loss                          (201)              (114)             (5)

Operating loss                 (85)               (114)              (20)
Exceptional items             (116)                   -                15
                             ______              ______            ______
                                             
                              (201)                 114               (5)
                             ______              ______            ______

Interest receivable                       415                  -              84
Interest payable                            -               (38)               -
                                       ______             ______          ______

Profit / (loss) on 
ordinary 
activities before tax                     214              (152)              79

Tax on profit / (loss) 
on ordinary activities    2                 -                  -               -
                                       ______             ______          ______

Profit / (loss) for the 
financial period / year                   214              (152)              79
                                       ______             ______          ______


Basic profit / (loss) per 
share                      3            0.01p             (0.2p)          0.002p

Profit / loss) per share 
before 
exceptional item                       0.016p             (0.2p)           0.02p


CASH FLOW STATEMENT

                       Notes   6 months ended     6 months ended      Year ended
                                     31.12.00           31.12.99        30.06.00
                                  (unaudited)        (unaudited)       (audited)
                                         £000               £000            £000

Net cash outflow / inflow 
from
the operating activities   4            (198)                 63            (24)

Returns on investments 
and servicing
of Finance
Interest received                         415                  -              84
Interest paid                               -               (38)               -
                                       ______             ______          ______

Net cash inflow before 
financing                                 217                 25              60

Financing
Repayment of convertible 
secured loan stock                          -                  -            (31)
Proceeds from new share issue           2,035                  -          13,074
                                       ______             ______          ______

                                        2,035                  -          13,043
                                       ______             ______          ______

Increase in cash                        2,252                 25          13,103
                                       ______             ______          ______




CONSOLIDATED BALANCE SHEETS

                     Notes     6 months ended     6 months ended      Year ended
                                     31.12.00           31.12.99        30.06.00
                                  (unaudited)        (unaudited)       (audited)
                                         £000               £000            £000

Current assets
Debtors                                    36                  -              63
Cash                                   15,360                 30          13,108
                                       ______             ______          ______

                                       15,396                 30          13,171
Creditors
Amounts falling due 
within one year                          (313)               (470)         (337)
                                       ______              ______         ______

Net assets                             15,083               (440)         12,834
                                       ______              ______         ______


Capital and reserves
Called up share capital                 7,172               5,079          6,965
Share premium account                  20,166               6,330         18,338
Other reserves                            557                 557            557
Profit and loss account              (12,812)            (13,257)       (13,026)
                                      _______             _______         ______

Equity Shareholders' funds             15,083             (1,291)         12,834
                                      _______             _______         ______
                                                 
Non equity share capital                    -                 851              -
Convertible loan stock
                                      _______             _______        _______

Total shareholder's funds              15,083               (440)         12,834
                                      _______             _______        _______



NOTES TO THE INTERIM RESULTS

 1. Basis of preparation

    The interim financial information for the six months ended 31 December
    2000 is un-audited and was approved by the directors on 24 April 2001.

    The interim financial information has been prepared in accordance with the
    accounting policies detailed in the financial statements for the year
    ended 30 June 2000.

    The comparative figures for the year ended 30 June 2000 are the groups
    statutory accounts for that financial year. Those accounts have been
    reported on by the company's auditors and delivered to the Registrar of
    Companies. The report of the auditors was unqualified and did not contain
    a statement under section 237(2) or (3) of the Companies Act 1985.

2. Tax

    No charge to corporation tax arises as a result of losses brought forward
    from previous year.


3. Profit per share                                6 months ended     Year ended
                                                         31.12.00        30.6.00

   Profit for the financial period / year                 213,577         78,295
   Number of shares in issue (weighted 
   average)                                         1,937,606,170    445,905,688
   Basic profit per share                                   0.01p          0.02p


4. Reconciliation of operating loss to net cash outflow from operating
   activities

                                                   6 Months ended     Year ended
                                                         31.12.00        30.6.00
                                                             £000           £000

 Operating loss                                             (201)            (5)
 Decrease / (increase) in working capital                       3           (19)
                                                           ______         ______

 Net cash outflow from operating activities                 (198)           (24)
                                                           ______         ______