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Foster(John) & Son (FTJ)

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Wednesday 01 September, 1999

Foster(John) & Son

Final Results

FOSTER (JOHN) AND SON PLC
31 August 1999

John Foster & Son PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 28 FEBRUARY 1999

The Board of directors of John Foster & Son plc announces the results of the
group for the year ended 28 February 1999.

Turnover for the year ended 28 February 1999 amounted to £4,588,000 (1998:
£7,768,000) producing a loss, after taxation and minority interest of £942,00
(1998 loss: £1,480,000).

The directors consider that the position of the company has now stabilised, with
the reorganised textile business no longer being a drain on resources.
Subsequent to the agreement of banking facilities, the directors intend to
restructure the company's activities and are currently pursuing a number of
options to develop opportunities to enhance shareholder value.

The directors have completed discussions with the group's bankers in respect of
banking facilities, which the directors believe are adequate for the group's
requirements. These facilities are in the process of being documented and the
directors anticipate that they will be in place shortly, whereupon the annual
report and accounts will be sent to shareholders.

The board of directors is unable to declare a dividend on the ordinary shares
(1998: Nil) with the preference dividend being withheld.

John Foster (Textiles) Limited

Throughout the year the textile business experienced difficult trading
conditions in its main markets which prompted a further rationalisation of the
business.

On 1 January 1999, as part of this rationalisation, the assets and liabilities,
together with the remaining employees of the textile business were transferred
to John Foster (Textiles) Limited, a wholly owned subsidiary of John Foster &
Son plc.

The textile business continues to operate from premises at Black Dyke Mills and,
following the rationalisation, now operates successfully at a lower volume of
business which is, currently, self-funding.  This position gives the directors
the opportunity to re-evaluate its previously stated strategy with regard to the
textile business.

Property investment and management

The strategy of the directors to provide low cost industrial space at Black Dyke
Mills has continued to prove successful. There are currently 26 tenants on site,
and in the year under review external rental income increased by 59% to
£226,000.

Property development

As reported in the interim statement the proceeds from the property development
projects remain the main mechanism for reducing the group's total debt.

Progress towards the disposal of the group's Scottish properties remains slow
and timing an the disposal remains difficult to predict.

The process of obtaining planning permission for a residential development on
the company's property at Broomfield, Queensbury has been started. The company
intends to evaluate this site along with phase one of the reservoir site.

The car park site remains unsold and the directors are considering other options
for realising the value of this site.

A copy of this statement will be cent to the shareholdero and will be made
available to the public at the Company's registered office.

All enquiries to: K C Goldie-Morrison / S A 0xley - 01274 882271


Consolidated profit and loss account for the year ended 28 February 1999

                              1999            1999               1999  
                              Continuing      Discontinued       Group
                              operations      operations         consolidated
                              Unaudited       Unaudited          Unaudited
                              £'000            £'000              £'000 

Turnover                      4,588             -                 4,588
Cost of sales                (4,077)            -                (4,077)

Gross profit                    511             -                   511
Selling & distribution
 expenses                      (820)            -                  (820)

Administration expenses -      (532)            -                  (532)
 recurring
Administration expenses -      (105)          (21)                 (126)
 exceptional
 
                               (946)          (21)                 (967)

Other operating income          226            98                   324
Operating (loss)/profit        (720)           77                  (643)       
Profit on disposal of 
 fixed assets                     -             -                     -  
Closure costs                     -             -                     -
Fundamental reorganisation  
 costs                            -             -                     -

Loss on ordinary activities    (720)           77                  (643)    
 before interest
Interest payable               (263)          (23)                 (286)
Loss on ordinary activities    (983)           54                  (929) 
 before taxation
Taxation                          -             -                     - 
Loss on ordinary activities
 after taxation                (983)           54                  (929)
Minority interest                 -           (13)                  (13)

Loss for the 
financial year                 (983)           41                  (942) 

Dividends on non-equity
 (preference) shares
 not yet declared

Cumulative 
preference 3.15%                 (9)            -                    (9)
Deficit for the year           (992)           41                  (951)  



Loss per 25p ordinary share         (8.5p) 


                              1998            1998              1998  
                              Continuing      Discontinued      Group
                              operations      operations        consolidated
                              £'000           £'000             £'000 

Turnover                       7,768             -                 7,768
Cost of sales                 (6,713)            -                (6,713)

Gross profit                   1,055             -                 1,055
Selling & distribution
 expenses                     (1,425)            -                (1,425)

Administration expenses -       (498)            -                  (498)
 recurring
Administration expenses -       (247)          (28)                 (275)
 exceptional
            
                              (1,115)          (28)               (1,143)

Other operating income           187             -                   187

Operating (loss)/profit         (928)          (28)                 (956)
Profit on                        347             -                   347
 disposal of fixed assets   
Closure costs                      -          (105)                 (105)
Fundamental                     (509)            -                  (509)
 reorganisation costs

Loss on ordinary activities   (1,090)         (133)               (1,223)  
 before interest
Interest                        (275)          (20)                 (295)
Loss on ordinary activities   (1,365)         (153)               (1,518)
 before taxation
Taxation                           -             -                     -
Loss on ordinary activities   (1,365)         (153)               (1,518)
 after taxation
Minority interest                  -            38                    38

Loss for the 
financial year                (1,365)         (115)               (1,480)

Dividends on non-equity
 (preference) Shares
 not yet declared

Cumulative 
 preference 3.15%                 (9)            -                    (9)
Deficit for the year          (1,374)         (115)               (1,489)


Loss per 25p ordinary share             (13.2p)



Consolidated balance sheet at 28 February 1999

                                         1999                   1998

                                         £'000       £'000     £'000      £'000
                                     Unaudited   Unaudited
Fixed assets
Tangible assets                          1,098                 1,134
Investments                                  -                    22
                                                     1,098                1,156
Current assets
Stock                                      597                 1,486
Debtors                                    479                   559
Assets held for resale                     386                 1,030
                                         1,462                 3,075

Current liabilities
Bank overdrafts                         (1,678)               (1,422)
Creditors - amounts                     (1,216)               (1,586)
 falling due within one year
                                        (2,894)               (3,008)

Net current (liabilities)/assets                   (1,432)                 67

Total assets less                                    (334)              1,223
 current liabilities

Creditors - amounts falling                          (912)             (1,492) 
 due after more than year

Provision for liabilities and charges                (302)               (350)

Net liabilities                                    (1,548)               (619)

Capital and reserves
Called up share capital                             3,101               3,101

Share premium account                   2,895                  2,895
Profit and loss account                (7,599)                (6,657)
                                                   (4,704)             (3,762)

Shareholders' (deficit)/funds
Equity                                 (1,947)                 (996)
Non-equity (preference)                   344                   335
Total shareholders' deficit                        (1,603)               (661)
Minority interest - equity                             55                  42
                                                   (1,548)               (619)


Consolidated cash flow statement for the year ended 28 February 1999

                                                    1999               1998
                                                    £'000              £'000
                                                    unaudited

Net cash outflow from operating activities          (50)               (53)

Returns on investments and servicing of finance
Interest paid                                      (284)              (292)
Interest element of finance lease rentals            (2)                (3)

Net cash outflow from returns on investments and
 servicing of finance                              (286)              (295)

Capital expenditure and financial investment
Receipt from sale of fixed asset investment          10                 -
Payments to acquire tangible fixed assets           (22)               (34)
Receipts from sales of tangible fixed assets
 and assets held for resale                         649                655

Net cash inflow from capital expenditure 
 and financial investment                           637                621

Net cash inflow before financing                    301                273

Financing
Repayment of principal under finance leases          (5)               (26)
Conversion of overdraft to mortgage                   -                600
Bank loan repayments                               (552)              (464)
Net cash (outflow)/inflow from financing           (557)               110

(Decrease)/increase in cash                        (256)               383


NOTES TO THE PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 28 FEBRUARY
1999

1  Basis of preparation

The directors have considered forecasts of the revenue and expenditure and
related cash flows of the group. Because of the difficult nature of the market
in which the group operates the forecasts involve assumptions which are subject
to a considerable degree of uncertainty. The directors have assumed that banking
facilities will be finalised and will prove adequate and that a restructuring of
the group's activities will then be successfully completed. On this basis the
financial statements have been prepared on a going concern basis.

The financial information presented does not constitute statutory accounts as
defined by section 240 of the Companies Act 1985. It is an extract from the 1999
financial statements which have not yet been approved by the directors, reported
on by the auditors, or filed with the Registrar of Companies. The auditors'
report will contain an explanatory paragraph making reference to the
applicability of the going concern assumption in respect of the renewal and
adequacy of banking facilities and the proposed subsequent restructuring
referred to in the preliminary announcement.

The comparative information presented is an extract from the statutory accounts
for the financial year ended 28 February 1998. These financial statements, in
which the auditors' report contained a similar supplementary paragraph as that
proposed for the 1999 accounts, did not contain a statement under either section
237(2) or (3) of the Companies Act 1985 and have been delivered to the Registrar
of Companies.

2  Dividends

The company is unable to declare a dividend on its ordinary or preference
shares. The arrears of preference dividends at 28 February 1999 amount to
£54,000 (1998: £45,000).


                                                                                                                                                            

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