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Orchard Furniture (OFU)

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Tuesday 04 January, 2000

Orchard Furniture

Final Results - Year Ended 31 June 1999

Orchard Furniture PLC
4 January 2000


                             ORCHARD FURNITURE PLC
                                       
               Audited accounts for the year ended 30 June 1999

Chairman's Statement

In January 1999 the Company raised £965,000 net of expenses by a placing of 9%
Convertible Secured Loan Stock 2006 and ordinary shares.

My  predecessor, Preston Rabl and David Harland, non-executive, resigned  from
the board on 25 February 1999. Adrian Appleton was appointed to the board as a
non-executive director on 11 March 1999 and I joined the board as Chairman  on
1 April 1999.

It  was  apparent to the board by late spring that the fund raising in January
had not achieved its aim of stabilising the Company's finances and our bankers
were unwilling to provide further support.  In the circumstances the board had
no  option  but  to  sell the only realisable assets, which were  the  trading
businesses of the Company's subsidiaries. These were sold on 15 June 1999 to a
subsidiary of DFS Furniture Company plc for £1.5 million cash.  This cash  was
used  to  repay bank borrowings which were secured by a first charge over  all
our assets and to the extent that there was anything remaining, to redeem part
of  the  9%  Convertible Secured Loan Stock.  This left the  Company  with  no
assets, no income and substantial liabilities.

On  17  December  1999  the  Company put proposals  for  a  Company  Voluntary
Arrangement to its creditors and shareholders.  A meeting of creditors and  an
Extraordinary General Meeting will take place on 10 January 2000.


Hugh Gillespie
Chairman


29 December 1999



Profit and Loss Account

                                               1999            1998
                                               £000            £000
                                                                   
Turnover                                         54              72
                                                                   
Operating Costs                              (2,036)        (10,203)
                                                                   
                                                                   
Operating Loss from continuing                                     
operations
Excluding exceptions                  (420)           (373)        
Exceptional items                   (1,562)         (9,758)        
                                             (1,982)        (10,131)
                                                                   
Interest                                        (72)            (68)
                                                                   
                                                                   
Loss on ordinary activities before           (2,054)        (10,199)
tax                 
                                                                   
Tax on loss on ordinary activities                -               -
                                                                   
Loss for the financial year                  (2,054)        (10,199)
                                                                   
Loss per share before exceptional            (1.2)p          (1.5)p
items
                                                                   
Basic loss per share                         (5.8)p          (40.3)p
                                                                  


There  were no recognised gains or losses other than disclosed above and there
have  been  no  discontinued  activities or acquisitions  in  the  current  or
preceding period.

Balance Sheet

                                                       1999    1998
                                                       £000    £000
                                                                   
Fixed assets                                                       
Tangible assets                                           -   1,275
Investments                                               -       -
                                                          -   1,275
                                                                   
Current Assets                                                     
Debtors                                                   -      37
Cash                                                      5       -
                                                          5      37
                                                                   
Creditors                                                          
Amounts falling due with in one year                   (293)   (365)
                                                                   
Net current liabilities                                (288)   (328)
                                                                   
Total assets less current liabilities                  (288)    947
                                                                   
Creditors                                                          
Amounts falling due after more than one year              -    (227)
                                                                   
Net (liabilities)/assets                               (228)    720
                                                                   
Capital and reserves                                               
Called up share capital                               5,079   5,059
Share premium account                                 6,330   6,155
Other reserves                                          557     557
Profit and loss account                             (13,105)(11,051)
                                                                   
Equity Shareholders' funds                           (1,139)    720
                                                                   
Non equity share capital                                           
                                                                   
Convertible secured loan stock                          851       -
                                                                   
Total Shareholders' funds                              (288)    720


Notes:

1. Copies  of the report & accounts for the year ended 30 June 1999 have  been
   delivered to the Registrar of Companies.

2. Due  to  the  Company's  current lack of funds,  copies  of  the  report  &
   accounts  have  not yet been distributed to shareholders.  Copies  will  be
   distributed when the Company's funds allow.


                                                                                                                                                              

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