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Oliver Group PLC (OVRF)

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Thursday 30 September, 1999

Oliver Group PLC

Interim Results

OLIVER GROUP PLC
30 September 1999

                     The Oliver Group Plc
            'Family Footwear Retailers for the UK'

                        Interim Results
              for the 26 weeks ended 31 July 1999


         Turnover increased 3% to £34.5 million
     
         Like  for like sales up 2.4% - ahead of the footwear
          market by 1.5%
     
         30% improvement in trading at the 35 stores converted in
          the period to Olivers Timpson 'family' format
     
         Product margins improved
     
         Distribution and administrative costs reduced by 8.4%
     
         Pre-exceptional operating loss reduced to £1.25 million
     
         Merger discussions ended

'We  will continue the conversion programme and intend to have
83  stores  trading in the Olivers Timpson 'family' format  by
the start of the peak Christmas trading period.

'Since the end of July trading conditions have been difficult.
Back  to  school  trading showed good  growth  on  last  year,
particularly  in  the new format stores.   Summer  trade  was,
however,  very  disappointing due to shortfalls  in  sales  of
ladies'  summer  product  and the  aggressive  discounting  by
competitors.  Sales of the Autumn product range have been slow
to lift and it is only very recently, with the arrival of more
autumnal  weather,  that positive reactions  to  new  season's
ranges have been recorded.

'Whilst the Group under-performed the market in August, it has
both earlier in the year and in recent weeks outperformed  the
market,  restoring the pattern of the Group's  performance  of
the  last two and a half years.  The converted stores continue
to demonstrate strong growth.

'The outcome of Christmas trade will determine the full year's
performance  but,  at  this  stage,  whilst  we   are   behind
expectations, we expect to demonstrate continued  progress  in
the full year.'
                                           Alan Cole, Chairman

                    FULL STATEMENT BELOW

Enquiries:
Martin Watts, Chief Executive
Paul Ryan, Group Finance Director
The Oliver Group Plc
Tel: 0116-222 3010

                        Interim Results
              for the 26 weeks ended 31 July 1999


STATEMENT BY THE CHAIRMAN, ALAN COLE
In  the  first half of the year we have continued to implement
the strategy which we outlined to shareholders at the time  of
our Rights Issue in July 1998.

Half Year Results
Turnover  for  the  period increased by 3% overall  to  £34.5m
(1998:  £33.5m)  and  gross profit was  £1.1m  (1998:  £1.1m).
Normal  operating costs were £2.4m (1998: £2.6m) and the  pre-
exceptional  operating  loss  was  reduced  to  £1.25m  (1998:
£1.44m).  Property profits were £115,000 (1998: £51,000) while
interest costs were £293,000 (1998: £391,000).  With a nil tax
charge  (1998:  nil) the loss for the financial period,  after
accounting for an exceptional expense of £148,000 (1998: nil),
was £1.58m (1998: £1.78m).

No interim dividend is being paid.

Like  for  like  sales  were up by 2.4%,  1.5%  ahead  of  the
footwear market.  This growth was driven by the performance of
the stores converted to the Olivers Timpson 'family' format of
which  35 stores were refurbished or fitted out in the period.
In  those stores, sales growth ran at about +30%, while in all
the  converted stores, including those trading in their second
or  third year post conversion, sales growth was 10% ahead  of
the remainder of the chain.

Achieved product margins were up by 0.4 percentage points, but
in  the  first half, which in sales terms is always the weaker
half,  this  was offset by a 4% increase in store  costs.   In
particular,  depreciation costs were up 16%  to  £1.0m  (1998:
£878,000)   as   a  consequence  of  the  capital   investment
programme.  Gross profit was therefore 3.20% (1998: 3.38%).

Distribution  and administrative costs were down  by  8.4%  on
those  in  the  comparable period in 1998.  This  reflected  a
10.6% reduction in warehouse and distribution costs and a 5.8%
reduction  in  administrative costs.  During  the  period  the
Group  completed its Year 2000 programme and, whilst it cannot
be  guaranteed  that no problems will arise, we are  confident
that the Group is compliant for Year 2000.

During  the period seven stores, which were inappropriate  for
future  investment, have been closed and disposed of by either
sale,  surrender or lease expiry.  The Group ended the  period
with 280 stores trading.  Property transactions gave rise to a
profit in the period of £115,000 (1998: £51,000).

Interest costs were down 25% to £293,000 (1998: £391,000)  due
to both lower borrowings and reduced borrowing costs.

As  a result of the above, the pre-exceptional loss before tax
of  £1.43m  was  £351,000 lower than in the same  period  last
year.

Stocks were down by £1.4m on last year.  Net debt was £7.8m (1
August  1998:  £3.2m) and gearing was 40.2%  (1  August  1998:
16.5%).   The  low gearing at 1 August 1998  was  due  to  the
receipt  in July 1998 of the £5.4m net proceeds of the  Rights
Issue.

Merger Discussions
It  was  announced at the AGM on 6 May that the Group  was  in
discussions  with  another footwear retail specialist  with  a
view to completing a merger or acquisition.  Those discussions
have  been long and complex and have culminated in the Board's
decision  that,  despite best endeavours,  the  merger  cannot
currently  be  achieved on terms which can be  recommended  to
shareholders.  The discussions are therefore at an  end.   The
costs  necessarily  incurred  in  the  course  of  the  merger
discussions total £148,000 and this amount has been charged in
the  profit  and loss account as an exceptional administrative
expense.

Full Year Outlook
In  the second half, we will continue the conversion programme
and  intend  to have 83 stores trading in the Olivers  Timpson
'family'  format  by the start of the peak  Christmas  trading
period.

Since  the end of July trading conditions have been difficult.
Back  to  school  trading showed good  growth  on  last  year,
particularly  in  the new format stores.   Summer  trade  was,
however,  very  disappointing due to shortfalls  in  sales  of
ladies'  summer  product  and the  aggressive  discounting  by
competitors.  Sales of the Autumn product range have been slow
to lift and it is only very recently, with the arrival of more
autumnal  weather,  that positive reactions  to  new  season's
ranges have been recorded.

Whilst the Group under-performed the market in August, it  has
both earlier in the year and in recent weeks outperformed  the
market,  restoring the pattern of the Group's  performance  of
the  last two and a half years.  The converted stores continue
to demonstrate strong growth.

The  outcome of Christmas trade will determine the full year's
performance  but,  at  this  stage,  whilst  we   are   behind
expectations, we expect to demonstrate continued  progress  in
the full year.


             CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                       For the    Restated    For the
                                      26 weeks     for the   52 weeks
                                         ended    26 weeks      ended
                                       31 July       ended 30 January
                                          1999    1 August       1999
                                         £'000        1998      £'000
                                                     £'000           
Turnover                                34,473      33,470     73,917
     Cost of sales - normal items       33,369      32,340     69,374
 - exceptional item                          -           -     (1,323)
                                                                     
Gross profit                             1,104       1,130      5,866
     Distribution costs                  1,220       1,365      2,635
     Administrative expenses -           1,136       1,206      2,626
normal items
- exceptional item (note 3)                148           -          -
                                                                     
                                         2,504       2,571      5,261
                                                                     
Operating (loss)/profit                (1,400)     (1,441)        605
     Profit/(loss) on disposal of          115          51       (90)
properties
                                                                     
(Loss)/profit on ordinary              (1,285)     (1,390)        515
activities before interest
     Net interest payable                (293)       (391)      (622)
                                                                     
Loss on ordinary activities            (1,578)     (1,781)      (107)
before tax
     Tax on loss on ordinary                 -           -          -
activities
                                                                     
Loss for the financial period          (1,578)     (1,781)      (107)
     Equity dividends                        -           -          -
                                                                     
Retained loss for equity               (1,578)     (1,781)      (107)
shareholders
                                                                     
Loss per ordinary share (note 4)       (3.12)p     (6.93)p    (0.28)p
                                                                     
Diluted loss per ordinary share        (3.06)p     (6.87)p    (0.28)p


                     ADDITIONAL STATEMENTS

        CONSOLIDATED HISTORICAL COST PROFITS AND LOSSES

                                       For the    Restated    For the
                                      26 weeks     for the   52 weeks
                                         ended    26 weeks      ended
                                       31 July       ended 30 January
                                          1999    1 August       1999
                                         £'000        1998      £'000
                                                     £'000           
Reported loss on ordinary              (1,578)     (1,781)      (107)
activities before tax                                                
Realisation of property                                              
revaluation gains of previous                -           -         15
 periods
                                                                     
Historical cost retained loss on                                     
ordinary activities                    (1,578)     (1,781)       (92)
 before tax
                                                                     
Historical cost retained loss for      (1,578)     (1,781)       (92)
equity shareholders


  CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                       For the    Restated    For the
                                      26 weeks     for the   52 weeks
                                         ended    26 weeks      ended
                                       31 July       ended 30 January
                                          1999    1 August       1999
                                         £'000        1998      £'000
                                                     £'000           
Loss for the financial period          (1,578)     (1,781)      (107)
                                                                     
Prior year adjustment (note 1)               -           -      (458)
                                                                     
Total recognised gains and losses      (1,578)     (1,781)      (565)
for the period

   RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS

                                       For the    Restated    For the
                                      26 weeks     for the   52 weeks
                                         ended    26 weeks      ended
                                       31 July       ended 30 January
                                          1999    1 August       1999
                                         £'000        1998      £'000
                                                     £'000           
Loss for the financial period          (1,578)     (1,781)      (107)
                                                                     
Proceeds of share issue (note 5)             -       6,320      6,320
                                                                     
Associated expenses written off                                      
against share                                -       (906)      (912)
 premium account
                                                                     
Net (decrease)/increase in             (1,578)       3,633      5,301
shareholders' funds                                                  
Shareholders' funds at the              20,949      15,648     15,648
beginning of the period
                                                                     
Shareholders' funds at the end of       19,371      19,281     20,949
the period


                     ADDITIONAL STATEMENTS
                  CONSOLIDATED BALANCE SHEET
                                         As at    Restated      As at
                                       31 July       as at 30 January
                                          1999    1 August       1999
                                         £'000        1998      £'000
                                                     £'000           
Fixed Assets                            19,865      15,996     17,227
                                                                     
Current Assets                                                       
Stock                                   14,070      15,499     11,953
Debtors                                  7,747       6,409      4,200
Cash at bank and in hand                    91         352        262
                                        21,908      22,260     16,415
Creditors: Amounts falling due        (21,875)    (18,347)   (12,119)
within one year
Net current assets                          33       3,913      4,296
Total assets less current               19,898      19,909     21,523
liabilities                                                          
Creditors: Amounts falling due           (205)       (204)      (184)
after more than one year
Provisions for liabilities and           (322)       (424)      (390)
charges
                                        19,371      19,281     20,949
Capital and reserves                                                 
Called up share capital (note 5)        12,641      12,641     12,641
Share premium account                      994       1,000        994
Revaluation reserve                      5,145       5,160      5,145
Capital redemption reserve                 125         125        125
Profit and loss account                    466         355      2,044
Equity Shareholders' Funds              19,371      19,281     20,949

           SUMMARY CONSOLIDATED CASH FLOW STATEMENT

                                       For the    Restated    For the
                                      26 weeks     for the   52 weeks
                                         ended    26 weeks      ended
                                       31 July       ended 30 January
                                          1999    1 August       1999
                                         £'000        1998      £'000
                                                     £'000           
Cash (outflow)/inflow from               (400)         155      1,925
operating activities
Returns on investments and               (276)       (524)      (421)
servicing of finance
Taxation                                   (6)           2          2
Capital expenditure and financial      (3,209)     (1,401)    (3,798)
investment
Cash flow before use of liquid         (3,891)     (1,768)    (2,292)
resources and financing
Financing                                (130)       5,203      5,003
(Decrease)/increase in cash in         (4,021)       3,435      2,711
the period


 RECONCILIATION OF OPERATING LOSS TO CASH FLOW FROM OPERATING ACTIVITIES

                                       For the    Restated    For the
                                      26 weeks     for the   52 weeks
                                         ended    26 weeks      ended
                                       31 July       ended 30 January
                                          1999    1 August       1999
                                         £'000        1998      £'000
                                                     £'000           
Operating (loss)/profit                (1,400)     (1,441)        605
Depreciation charges                     1,017         878      1,896
Profit on disposal of fixed                  1        (15)        (6)
assets other than property
Movement on provisions                    (68)        (34)       (68)
(Increase) in stocks                   (2,117)     (4,861)    (1,315)
(Increase) in debtors                  (3,150)     (2,737)      (528)
Increase in creditors                    5,317       8,365      1,341
Net cash (outflow)/inflow from           (400)         155      1,925
operating activities
                               
                               
                             NOTES

1)   The accounts for the 26 weeks ended 31 July 1999 have not
     been  audited,  nor have the accounts for the  equivalent
     comparative period in 1998.  The figures for the 52 weeks
     ended  30  January  1999  have been  extracted  from  the
     accounts  which  have been filed with  the  Registrar  of
     Companies and which contain an unqualified audit report.

     The  figures for the comparative period to 1 August  1998
     have  been  restated to reflect the change in  accounting
     policy adopted in the financial statements for the period
     ended  30 January 1999, in recognition of provisions  for
     onerous   property  leases  as  required   by   Financial
     Reporting Standard 12.

2)   These  accounts comply with relevant accounting standards
     and  have been prepared using accounting policies set out
     in the 1998/99 Report and Accounts.

3)   The  amount  of  £148,000 (1998: nil)  which  relates  to
     professional  fees  associated with  the  aborted  merger
     transaction has been charged as an exceptional cost.

4)   Loss per share
     Basic:  the loss per share has been calculated using  the
     loss  for the financial period and the number of Ordinary
     shares   in   issue  throughout  the  period  which   was
     50,564,772  (26  weeks  ended  1  August  1998:  weighted
     average 25,699,129).

     Diluted: the diluted loss per share is the loss per share
     after allowing for the dilutive effect of conversion into
     Ordinary shares of the weighted average number of options
     outstanding during the period.  The number of shares used
     for the diluted calculation for the period was 51,487,716
     (26 weeks ended 1 August 1998: 25,929,892).

5)   On  29  July 1998, pursuant to a one for one Rights Issue
     of   Ordinary  shares  approved  by  shareholders  at  an
     Extraordinary General Meeting of the Company  on  3  July
     1998.   25,282,386  Ordinary shares at 25p  were  issued,
     generating a gross amount of £6.32m of new equity capital
     for the business.

6)   This  statement has been sent to shareholders and further
     copies  are available from the Registered Office  of  the
     Company:   The   Oliver  Group  Plc,  Murrayfield   Road,
     Braunstone, Leicester, LE3 1DZ (Tel: 0116-222 3000,  Fax:
     0116-222 3001).


   INDEPENDENT REVIEW REPORT BY KPMG AUDIT Plc TO THE OLIVER
                           GROUP Plc


Introduction
We have been instructed by the Company to review the financial
information set out on pages 4 to 7 and we 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 they are to be  changed  in  the
next  annual  accounts  in which case  any  changes,  and  the
reasons for them, are to be disclosed.

Review work performed
We  conducted our review in accordance with guidance contained
in  Bulletin  1999/4: Review of interim financial  information
issued  by  the  Auditing Practices Board.  A review  consists
principally  of  making  enquiries  of  group  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  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 31 July 1999.

KPMG Audit Plc
1 Waterloo Way
Leicester
LE1 6LP

Chartered Accountants
30 September 1999

                                       

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