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Mansfield Brewery. (MNB)

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Tuesday 16 November, 1999

Mansfield Brewery.

Interim Results - Trading Profit Up 13.5%

Mansfield Brewery PLC
16 November 1999

                                       
                             MANSFIELD BREWERY PLC
          INTERIM RESULTS FOR THE 26 WEEKS ENDED 25th SEPTEMBER 1999

     Turnover up 3.4% to £92.5m                       (1998: £89.5m)
                                                      
     Trading profit, before exceptional items and     
     property disposal profits, up 13.5% to £11.9m    (1998 adjusted:£10.5m)  
     
     Earnings per share before exceptional items and  
     property disposal profits up 14.3% to 13.40p     (1998 adjusted:11.72p)  
                                                              
     Reported diluted earnings per share after        
     exceptional items up 7.3% to 12.72p              (1998 adjusted:11.86p)  
                       
    Recommended offer by Wolverhampton & Dudley Breweries plc (W&DB) of 380p  
    per share (premium of 47% over share price on 23rd july 1999)

Vic Steel, Chairman of Mansfield Brewery plc said:

'This is another good set of results.  The current management team has built
an excellent business with strong inherent values.'

'Mansfield's resurgence as a leading regional operator commenced in April
1990, when the business had an enterprise value of £101m; the offer by W&DB
represents an enterprise value of circa £365m and, at 380p per share, a
premium of 47% over the share price on 23rd July 1999.  As such this offer
reflects the value of the business, and additionally provides the opportunity
for Mansfield shareholders to participate in, and benefit from, the continuing
consolidation of the brewing and pub operating industry.'
       
Enquiries:

Mansfield Brewery PLC                                        Tel: 01623 625691
Bill McCosh - Chief Executive
Paul Handley - Executive Director, Finance  & Corporate Services

Gavin Anderson & Company   (Financial & City)               Tel: 0171 457 2345
Richard Barton / Fiona Grant Duff

Myles Communication  (Trade & Regional)                     Tel: 0115 969 1692
Pam Myles / Gordon Boreland


CHAIRMAN'S STATEMENT

In addition to our important summer trading, the first half was dominated by
the decision of the F. B. Baily Thomas Trusts to market their combined 48.8%
shareholdings.   Notwithstanding the intense activity which this decision
initiated, management's eye remained firmly on the trading ball.

Profit and earnings per share before exceptional items and property disposals
profits rose 13.5% and 14.3% respectively on a restated comparable basis,
another good performance in a highly competitive marketplace.  Creation of
value added increased by 49%.

In this connection I give the highest praise to all employees and trade
partners for their continuing committed performance throughout a period of
great uncertainty.

In view of the recommended offer announced by Wolverhampton & Dudley Breweries
plc on 25th October 1999, the Board has not declared an interim dividend for
the period.  The offer by W&DB includes an adjustment made to the number of
W&DB shares to be issued to Mansfield shareholders to reflect the estimated
W&DB final dividend.  If for any reason the offer should lapse, the Board
would consider the payment of either an interim dividend or an enlarged final
dividend such that shareholders were not disadvantaged.


SALES

Total sales turnover rose by 3.4% to £92.5m; adjusting for the reduced sales
of the 60 outlets successfully transferred from managed to trade partnerships
in the period, turnover increased by 6.1%.


RETAIL OPERATIONS

Operating profit rose by 24.1% to £13.9m, and by 8.9% after adjusting for
£1.7m higher discount granted by the Brewing & Brands division.

Management action slowed the like for like profit decline experienced last
year; managed retail outlets were 1.8% lower with an encouraging performance
of community and food led outlets offset by lower performance in the
competitive high street arena; trade partnerships, excluding outlets held for
disposal, were level with last year.

Profit advance was achieved as a result of the capital expansion programme and
by savings in selling and administration overheads.

The transfer of 60 houses from managed to trade partnership resulted in a
managed estate averaging over £9,000 per week of takings, and further
strengthened the quality of the trade partnership estate.

£17.9m was invested in opening and purchasing 20 outlets and in 14 major
redevelopment schemes.


BREWING & BRANDS

Operating profit rose by 31.3% before adjusting for £1.7m increased discount
granted to the retail operations division.  After allowing for the discount
profits are recorded as £2.5m, a 21.9% fall.  Savings were made on overhead
expenditure.

Total on-trade beer and cider sales increased by 1.6% against an estimated
market decline of 2.1%, resulting in improved market share.

In the free on-trade volumes advanced by 2.1%, although the additional profit
earned was countered by higher provisions for bad debts.  Wholesale business
advanced strongly in both volume and profit; take home profit fell slightly on
lower volumes of higher margin sales.

A net inflow on free trade loan balances was achieved, as we continued our
policy of expansion via higher quality business, and withdrawal from under-
performing accounts.


CORPORATE OVERHEADS AND EXCEPTIONAL ITEMS

Corporate overheads rose by £0.6m largely due to the accrual of incentive
bonus payments this year; this compares with no bonuses on last year's
performance.

The costs incurred by the Company in the period in connection with properly
addressing all shareholders' interests following the decision of the F. B.
Baily Thomas Trusts to market their shareholdings amounted to £0.5m.


CONCLUSION

In the light of the Trusts' decisions to consider the sale of their
shareholdings, the Board has focused on ensuring that any such sale delivers
maximum value for all shareholders.

Mansfield Brewery has built an excellent business with strong inherent values,
growing strongly as a leading regional operator from April 1990, when the
business had an enterprise value of £101m; the offer by W&DB represents an
enterprise value of circa £365m and, at 380p per share, a premium of 47% over
the share price on 23rd July 1999.  As such this offer reflects the value of
the business, and additionally provides the opportunity for Mansfield
shareholders to participate in, and benefit from, the continuing consolidation
of the brewing and pub operating industry.
     
  
     
     
V J Steel
Chairman
16th November 1999

GROUP PROFIT AND LOSS ACCOUNT
for the 26 weeks ended 25th September 1999

                                          26 weeks     26 weeks     52 weeks
                                             ended        ended        ended
                                              25th         26th   27th March
                                         September    September         1999
                                              1999         1998        
                                             £'000        £'000        £'000
                                                                            
Turnover                                    92,542       89,463      175,890
Cost of sales                             (61,099)     (59,869)    (118,418)
                                               ---          ---          ---
Gross profit                                31,443       29,594       57,472
Other operating expenses                  (16,218)     (15,756)     (29,266)
                                               ---          ---          ---
Operating profit before exceptional                                         
items                                       15,225       13,838       28,206
- Reorganisation expenses                        -            -      (2,146)
- Impairment of property values                  -            -        (878)
- Exceptional fees                           (500)            -            -
                                               ---          ---          ---
Operating profit                            14,725       13,838       25,182
Surplus on disposal of properties               58           97          113
                                               ---          ---          ---
Profit on ordinary activities before                                        
interest                                    14,783       13,935       25,295
Finance charges                            (3,304)      (3,338)      (6,857)
                                               ---          ---          ---
Profit on ordinary activities before                                        
taxation                                    11,479       10,597       18,438
Tax on profit on ordinary                                                   
activities                                 (3,159)      (2,835)      (4,804)
                                               ---          ---          ---
Profit on ordinary activities after                                         
taxation                                     8,320        7,762       13,634
Dividends paid and proposed                      -      (1,635)      (5,556)
                                               ---          ---          ---
Amount set aside to reserves                 8,320        6,127        8,078
                                               ---          ---          ---
Earnings per share - Basic                  12.72p       11.87p       20.85p
                                               ---          ---          ---
Earnings per share - Diluted                12.72p       11.86p       20.85p
                                               ---          ---          ---
Dividend per share                           0.00p        2.50p         8.5p
                                               ---          ---          ---

The results above arose from the continuing activities of the Group.

GROUP BALANCE SHEET
for the 26 weeks ended 25th September 1999

                                             As at        As at        As at
                                              25th         26th   27th March
                                         September    September         1999
                                              1999         1998        £'000
                                             £'000        £'000
Fixed Assets                                                                
Tangible assets                            280,163      267,489      265,843
Investments                                 22,865       26,197       24,820
                                               ---          ---          ---
                                           303,028      293,686      290,663
                                               ---          ---          ---
Current Assets                                                              
Stocks                                       4,960        4,726        5,448
Debtors falling due within one year         21,807       16,922       15,335
Debtors falling due after more                                              
than one year                                8,001        6,971        7,491
Cash at bank and in hand                     1,875        1,700        3,039
                                               ---          ---          ---
                                            36,643       30,319       31,313
Current Liabilities                                                         
Creditors falling due within one                                            
year                                      (37,400)     (34,719)     (33,368)
                                               ---          ---          ---
Net Current Liabilities                      (757)      (4,400)      (2,055)
                                               ---          ---          ---
Total Assets Less Current                                                   
Liabilities                                302,271      289,286      288,608
Creditors falling due after more than                                       
one year                                 (108,530)     (99,824)    (102,083)
Provision for liabilities and charges      (2,398)      (2,331)      (3,502)
                                               ---          ---          ---
Net Assets                                 191,343      187,131      183,023
                                               ---          ---          ---
Capital and Reserves                                                        
Called up share capital                     16,351       16,351       16,351
Share premium account                        3,635        3,647        3,639
Revaluation reserve                         55,685       61,092       55,519
Profit and loss account                    115,672      106,041      107,514
                                               ---          ---          ---
Amounts Attributable to Equity             191,343      187,131      183,023
Interests                                      ---          ---          ---

The interim financial statements were approved by the Board of Directors on
16th November 1999 and were signed on its behalf by

V J Steel
G P Handley
Directors

NOTES TO THE ACCOUNTS                    26 weeks      26 weeks     52 weeks
                                            ended         ended        ended
                                             25th          26th   27th March
                                        September     September         1999
                                             1999          1998        £'000
                                            £'000         £'000
1. Trading Profit                                                           
Profit after interest and before                         
exceptional items and property             
disposal profits                           11,921        10,500       21,349  
                                              ---          ----         ----
                                                                            
2. Earnings per share excluding                                             
exceptional items and
Property disposal profits                  13.40p        11.72p       24.30p
                                              ---           ---          ---
                                                                
3. The results for the 26 weeks ended 26th September 1998 have been restated
to reflect the Accounting Standards Board's recommendations on best practice
for interim reports.  Certain items of expenditure previously equalised
between the two half years have been re-presented to reflect expenditure as
incurred; the impact has been to reduce profit before tax by £467,000.
                                                          
4. The results for the 52 weeks ended 27th March 1999 are abridged from the
full accounts for that period which received an unqualified auditors' report
and have been filed with the Registrar of Companies.

5. A copy of the interim results will be sent to shareholders and is
available from the Company's Registered Office.


GROUP CASH FLOW STATEMENTS
for the 26 weeks ended 25th September 1999

                                           26 weeks      26 weeks   52 weeks
                                              ended         ended      ended
                                               25th          26th       27th
                                          September     September      March
                                               1999          1998       1999
                                              £'000         £'000      £'000
CASH FLOW STATEMENT                                                         
Net cash inflow from operating                                              
activities                                   14,451        15,606     34,613
                                                                            
Returns on investments and servicing                                        
of finance                                  (2,098)       (3,234)    (6,802)
                                                                            
Taxation                                      (176)         (699)    (7,510)
                                                                            
Capital expenditure and financial                                           
investment                                 (18,018)      (13,133)   (21,051)
                                                ---           ---        ---
                                            (5,841)       (1,460)      (750)
                                                                            
Equity dividends paid                       (3,921)       (3,695)    (5,330)
                                                ---           ---        ---
Net Cash Outflow Before Financing           (9,762)       (5,155)    (6,080)
                                                                            
Financing                                     6,468           476      2,886
                                                ---           ---        ---
Decrease in Cash                            (3,294)       (4,679)    (3,194)
                                               ====          ====       ====

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
                          1999      1999   1998      1998     1999      1999
                         £'000     £'000  £'000     £'000    £'000     £'000
                                                                            
Decrease in cash in                                                         
the period             (3,294)            (4,679)           (3,194)
                                             
Cash inflow from                                                            
movements                                                                   
in debt and lease      (6,468)              (476)           (2,886)
financing
                           ---       ---    ---       ---      ---       ---
Change in net debt                                                          
resulting from cash              (9,762)          (5,155)            (6,080)
flows
New finance leases                     -                -               (59)
                           ---       ---    ---       ---      ---       ---
Movement in Net Debt                                                        
in the Period                    (9,762)          (5,155)            (6,139)
                                                                            
Net Debt at Start of                                                        
Period                          (102,399)        (96,260)           (96,260)
                           ---      ----   ---       ---      ---       ---
                                                                           
Net Debt at End of              (112,161)        (101,415)         (102,399)
Period                     ---       ---   ---       ---      ---       ---
                                                                   

NOTES TO THE GROUP CASH FLOW STATEMENT
for the 26 weeks ended 25th September 1999

                                           26 weeks     26 weeks    52 weeks
                                              ended        ended       ended
                                               25th         26th  27th March
                                          September    September        1999
                                               1999         1998       
                                              £'000        £'000        £'000
i)   RECONCILIATION OF OPERATING                                            
PROFIT TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
                                                                            
Operating profit                             14,725       13,838      25,182
Depreciation                                  4,190        4,022       8,349
Impairment of property values                     -            -         878
Provisions against trade loans                  656          173         663
Decrease in stocks                              488        1,035         313
(Increase) in debtors                       (7,065)      (1,876)       (747)
Increase/(decrease) in creditors and                                        
provisions                                    1,457      (1,578)          57
(Profit) on disposal assets                       -          (8)        (82)
                                                ---          ---         ---
                                             14,451       15,606      34,613
                                               ====         ====        ====
ii) ANALYSIS OF CASH FLOWS FOR                            
HEADINGS NETTED IN THE CASH
FLOW STATEMENT
                                                                             
                           26 weeks         26 weeks           52 weeks
                            ended             ended             ended
                        25th September   26th September       27th March
                             1999             1998               1999
                            £'000             £'000             £'000
Returns on investments                                                      
and servicing of
finance:
Interest paid          (2,752)           (3,794)           (8,094)          
Interest received          714               656             1,483          
Interest element of                                                         
finance leases            (60)              (96)             (191)          
                           ---      ---      ---     ---       ---       ---
                                (2,098)           (3,234)             (6,802)
                                    ---              ---                 ---

Capital expenditure                                                         
and financial
investment:
Payments to acquire                                                         
fixed assets           (19,579)          (15,061)         (24,368)

Asset disposals            262               896             1,398          
Trade loan advances    (2,952)           (4,685)           (7,056)          
Trade loan repayments    4,251             5,717             8,975          
                           ---      ---      ---     ---       ---       ---
                                (18,018)          (13,133)          (21,051)
                                     ---                ---              ---  
                                 
Financing:                                                                  
Expenses on issue of         -                 -                 8          
debentures
Repayment of loans       (271)             (272)             (609)          
New loans                7,000             1,000             4,000          
Capital repayments                                                          
under finance leases     (261)             (252)             (513)          
                           ---      ---      ---     ---       ---       ---
                                  6,468              476               2,886
                                    ---              ---                 ---
                                
iii) ANALYSIS OF CHANGES IN NET DEBT                     
                          25/9/99   Cashflows     Other   27/3/99  Cashflows
                                                   non-
                                               cashflows
                                                      
Cash in hand and                                                            
at bank                     1,875     (1,164)               3,039      1,339
Overdrafts                (4,266)     (2,130)             (2,136)        146
                              ---         ---       ---       ---        ---
                          (2,391)     (3,294)                 903      1,485
                              ---         ---       ---       ---        ---
Debt due within one         (653)         275     (291)     (637)        309
year
Debt due after one year (107,006)     (7,004)       291  (100,293)   (2,980)
                                                                
Finance leases due                                                          
within one Year             (587)         261     (267)     (581)        261
Finances leases due                                                         
after                     (1,524)                   267   (1,791)           
one Year                      ---         ---       ---       ---        ---
                                      (6,468)                        (2,410)
                              ---         ---       ---       ---        ---
                        (112,161)     (9,762)         -  (102,399)      (925)
                             ====        ====      ====      ====        ====


iii) ANALYSIS OF CHANGES IN NET DEBT                              
                       Other non-    26/9/98  Cashflows  Other non-    28/3/98
                       cashflows                        cashflows
Cash in hand and at                                                         
bank                                  1,700    (4,506)                 6,206
Overdrafts                          (2,282)      (173)               (2,109)
                             ---        ---        ---        ---        ---
                                      (582)    (4,679)                 4,097
                             ---        ---        ---        ---        ---
Debt due within one                                                         
year                       (323)      (623)        362      (314)      (671)
Debt due after one                                                          
year                         323   (97,636)    (1,090)        314   (96,860)
Finance leases due                                                          
within                     (314)      (528)        252      (270)      (510)
One Year
Finances leases due                                                         
after                        255    (2,046)                   270    (2,316)
one Year                     ---        ---        ---        ---        ---
                                                 (476)                      
                             ---        ---        ---        ---        ---
                            (59)  (101,415)    (5,155)          -   (96,260)
                            ====       ====       ====       ====       ====




STATEMENT OF VALUE ADDED                    26 weeks   26 weeks     52 weeks
                                               ended      ended        ended
                                                25th       26th   27th March
                                           September  September         1999
                                                1999       1998
                                                                            
Cash return on cash capital employed          11.03%     10.91%       11.07%
                                                                            
Weighted average cost of capital               7.53%      8.34%        7.30%
                                                                            
                                                  £m         £m           £m
                                                                            
Cash operating profit after tax                 15.9       14.7         30.2
                                                                            
Less capital charge                             10.7       11.2         19.9
                                                 ---        ---          ---
Value added                                      5.2        3.5         10.3
                                                ====       ====         ====

The calculations above exclude the impact of exceptional items.

SEGMENTAL ANALYSIS                       26 weeks      26 weeks     52 weeks
                                            ended         ended        ended
                                             25th          26th   27th March
                                        September     September         1999
                                             1999          1998           
                                               £m            £m           £m
Turnover                                                                    
Retail Operations                            56.3          53.8        107.6
Brewing & Brands                             36.1          35.6         68.1
Corporate                                     0.1           0.1          0.2
                                              ---           ---          ---
                                             92.5          89.5        175.9
                                             ====          ====         ====
Operating Profit                                                            
Retail Operations                            13.9          11.2         22.5
Brewing & Brands                              2.5           3.2          6.5
Corporate                                   (1.2)         (0.6)        (0.8)
Exceptional Items                           (0.5)             -        (3.0)
                                              ---           ---          ---
                                             14.7          13.8         25.2
                                             ====          ====         ====
Net Assets                                                                  
Retail Operations                           247.1         236.7        230.7
Brewing & Brands                             64.7          62.9         63.5
Corporate                                     4.3           5.5          5.0
Debt, Tax and Dividends                   (124.8)       (118.0)      (116.2)
                                              ---           ---          ---
                                            191.3         187.1        183.0
                                             ====          ====         ====

NOTE    Products are transferred between Brewing & Brands and Retail
        Operations at open market prices.  These were re-assessed at the
        beginning of the year resulting in an additional £1.7m
        movement in profit from Brewing & Brands to Retail
        Operations.


INDEPENDENT REVIEW REPORT TO MANSFIELD BREWERY PLC


Introduction
We have been instructed by the company to review the financial information set
out within this announcement, and have read the other information contained in
the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists principally
of making enquiries of management and applying analytical procedures to the
financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions.  It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit.  Accordingly we do not express an audit opinion on
the financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the 26 weeks
ended 25th September 1999.

PricewaterhouseCoopers  Chartered Accountants
Nottingham, 16th November 1999

                                                                                                                        

a d v e r t i s e m e n t