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Church & Co PLC (CHCH)

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Thursday 02 September, 1999

Church & Co PLC

Interim Results

CHURCH & CO. PLC
2 September 1999
 
                          CHURCH & CO. PLC
                         CHAIRMAN'S STATEMENT
                      HALF YEAR TO 30TH JUNE 1999

Pretax  profit,  before  exceptional costs, for the six months to 30th
June  1999  amounted to £1.0m (1998 £1.5m) on turnover of £36.8m (1998
£38.2m).  The Board has declared a maintained Interim Dividend of 3.8p
per  share, which will be paid on 25th October 1999 to shareholders on
the Register on 1st October 1999.

Cash flow throughout the Group remains strong, with the result that at
30th June 1999 gearing at approximately 6% was very favourable. 

The  comparative weakness of the European economies, combined with the
effects  of  the  strong  Pound,  has  resulted  in a reduction in the
profits  of  Church  &  Co  (Footwear)  Ltd.,  the  larger  of  the
manufacturing  companies.   The Circa range of leisure shoes is now in
the  process  of  being launched to the trade and will be available in
the  shops  in  the  Spring  of  2000.  Cheaney operating profits were
identical  to  last year and the factory remains extremely busy with a
full order book.

The  deflationary  and  competitive pressures that exist in the United
Kingdom  for  footwear retailing have resulted in the profits of Jones
being  lower than in the comparable period last year.  We opened shops
in  Bluewater  and  Canary Wharf in March and June respectively, which
are both already trading profitably.

The  Belgian  and  Italian companies were profitable, but a small loss
was  incurred in France, as a result of margin pressures caused by the
weak Euro.

As  part  of  our previously announced restructuring in Canada we have
now  closed the loss making Fredericton factory, which has resulted in
an  exceptional cost of £374,000.  The closure will enable the company
to  focus  on  retailing  and resourcing for higher margins and better
profits in the future.  

The American company recorded an improved profit on last year.

I  am  pleased  to  say  that  trading  conditions  in  Hong Kong have
stabilized and a small profit was achieved by our three shops there.  

Licence income from Europe continues to grow. 

Whilst  the current level of sales is encouraging, the outcome for the
year  as  a  whole  will,  as  always,  depend  on  trading conditions
throughout the important Autumn selling season.

JOHN G CHURCH
2nd SEPTEMBER 1999


The figures below are unaudited.  A copy of the Interim report will be
sent to shareholders on 17th September 1999.

CHURCH & CO. PLC
GROUP PROFIT AND LOSS ACCOUNT

                                     6 months   6 months   12 months
                                        ended      ended       ended
                                      30/6/99    30/6/98    31/12/98
                                        £ 000      £ 000       £ 000

 Turnover                             36,825     38,181      81,573 
 Other operating income and charges  (35,655)   (36,524)    (75,517)
 Operating profit                      1,170      1,657       6,056 
 Share of operating profits of
 associates                                2         (2)          2 
 Income from other fixed asset
 investments                               -         18          26 
 Net interest                           (145)      (158)       (283)
 Profit on ordinary activities
 before taxation and exceptional
 items                                 1,027      1,515       5,801 
 Exceptional items                      (374)         -           - 
 Profit on ordinary activities                                      
 before taxation                         653      1,515       5,801 
 Tax on profit on ordinary              (331)      (450)     (1,807)
 activities
 Minority interests                        9         (2)          4 
 Profit for the period                   331      1,063       3,998 
 Dividends                              (423)      (421)     (2,000)
 Transfer from reserves/profit
 retained                                (92)       642       1,998 

 Earnings per Share   before            6.33 Pence 9.58 Pence 36 Pence
 exceptional item                                           
 Earnings Per Share   Basic             2.97 Pence 9.58 Pence 36 Pence
                                                             
 Earnings Per Share   Diluted           2.96 Pence 9.56 Pence 35.75 Pence
                                                                         
 Dividend per share                      3.8 Pence  3.8 Pence  18.3 Pence
                                       (Interim)  (Interim)     (Total)

CHURCH & CO. PLC
GROUP BALANCE SHEET

                                     30th June  30th June   31st Dec
                                          1999       1998       1998
                                         £ 000      £ 000      £ 000

 Fixed assets

 Tangible                               17,744     16,291     17,503
 Investments                               326        303        307
                                        18,070     16,594     17,810

 Current assets

 Stocks                                 36,163     36,017     34,480
 Debtors                                 6,323      7,456      6,623
 Cash in hand                            1,749      1,350      5,622
 Creditors: amounts falling due
 within one year                      (13,274)   (13,572)   (15,523)
 Net current assets                     30,961     31,251     31,202

 Creditors: amounts falling due
 after more than one year                (388)      (798)      (437)
 Provisions for Liabilities &
 Charges                                 (268)      (100)      (202)
 Minority Interests                       (66)       (79)       (80)
 Total assets less liabilities          48,309     46,868     48,293

 Capital and reserves
 Share capital                           2,781      2,776      2,779
 Share premium account                   1,043        990      1,020
 Profit and loss balance                38,647     36,992     38,430
 Revaluation reserves:
 Freehold property                       5,838      6,110      6,064
 Shareholders' Funds                    48,309     46,868     48,293

CHURCH & CO. PLC                                        
GROUP CASH FLOW STATEMENT
                                   6 months    6 months        Year
                                      ended       ended       Ended
                                    30/6/99     30/6/98    31/12/98
                                    £ 000       £ 000        £'000 

 Cash inflow from operating
 activities
 Operating profit                    1,170       1,657       6,056 
 Exceptional items                    (374)          -           - 
 Depreciation                          890         789       1,680 
 (Profit)/loss on sale of fixed
 assets                                 (5)         25          37 
 Dividend from associate                 -           -           1 
 (Increase)/decrease in stock       (1,262)     (1,240)        359 
 Decrease/(increase) in debtors        490        (244)        456 
 Decrease in creditors                (338)       (778)       (509)
                                       571         209       8,080 
 Returns on investments and
 servicing of finance                 (154)       (181)       (258)

 Taxation paid                        (270)       (593)     (1,874)
 Capital expenditure and
 financial investment               (1,654)       (700)     (2,251)
 Equity dividends paid              (1,584)     (1,499)     (1,916)

 Financing                            (140)     (1,159)       (788)

 (Decrease)/increase in cash in
 the period                         (3,231)     (3,923)        993 
 Cash inflow from increase in
 debt                                  165       1,160         822 
 Change in net debt resulting
 from cashflows                     (3,066)     (2,763)      1,815 
 Translation difference                (17)          2          80 

 Movement in net debt in the
 period                             (3,083)     (2,761)      1,895 
 Net debt at 1st January 1999          (13)     (1,908)     (1,908)

 Net debt at 30th June 1999         (3,096)     (4,669)        (13)

Enquiries to:

John Church              (tel) 01604 751 251
Jasper Archer            (tel) 0171 930 0777

                                                                                                                                     

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