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Orchard Furniture (OFU)

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Wednesday 20 December, 2000

Orchard Furniture

Final Results

Orchard Furniture PLC
19 December 2000


                              Orchard Furniture plc

                     Results for the year ended 30 June 2000

The  results  for the year to 30 June 2000 show a profit before tax of  £79,000.
This  compares with a loss of £2.0m in the previous year and a loss of  £165,000
in  the  first half.  In  the second six months, Orchard made  a  profit  before
exceptional  items of £220,000, reflecting the benefit of interest received  on
its cash balances and relatively low overheads. The exceptional credit of
£15,000 relates  to a surplus as a result of the Company Voluntary Arrangement
with  its creditors which was approved in January, net of compensation costs for
loss  of office.

As  shareholders are aware, Orchard is effectively a cash shell. Since 28  April
2000 (the date of the last circular to shareholders), the Company has raised  an
additional £11.1m, taking its cash balances to in excess of £15m.

When the Company's shares were requoted on AIM, the Directors stated that it was
the  intention to identify suitable investments or a single acquisition  with  a
view  to  enhancing  shareholder value. A decision was taken  to  focus  on  the
technology  sector  in  view of the lack of investor  interest  in  old  economy
companies  at  that  time.  As  the investment community  progressively  became
disaffected  with technology incubators, it become clear that the  board  should
concentrate  on finding an appropriate reverse take-over. Subsequently,  it  has
examined a number of opportunities but, during a period in which share prices of
technology companies have fallen significantly, the Board has not felt confident
that  the valuations being placed on target companies were sustainable. In  view
of  current  market  conditions, the Board has  recognised  that  it  should  be
prepared  to  take  a  broader approach with regard  to  identifying  potential
acquisitions.

The Board continues to examine opportunities and will report to shareholders
at the appropriate time.

Enquiries
Richard Armstrong, Director
020 7448 4700



CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                   Notes           2000               1999
                                                   £000               £000

TURNOVER                                              -                 54
Operating Costs                                     (97)            (2,036)
Other operating income                               92                  -

Operating loss                                       (5)            (1,982)

Operating loss from continuing 
 operations                                 (20)            (420)
Exceptional items                    1       15           (1,562)

                                             (5)          (1,982)

Interest receivable                                  84                  -
Interest payable                                      -                (72)

Profit/(Loss) on ordinary activities 
 before tax                                          79             (2,054)


Tax on profit/(loss) on ordinary 
 activities                                           -                  -

Profit/(Loss) for the financial year                 79             (2,054)

Basic profit/loss) per share         2            0.002p              (5.8)p




CONSOLIDATED BALANCE SHEET

                                                   2000               1999
                                                   £000               £000

Fixed Assets
Investments                                           -                  -

Current assets
Debtors                                              63                  -
Cash                                             13,108                  5

                                                 13,171                  5


Creditors
Amounts falling due within one year                (337)              (293)

Net assets/(liabilities)                         12,834               (288)

Capital and reserves
Called up share capital                           6,965              5,079
Share premium account                            18,338              6,330
Other reserves                                      557                557
Profit and loss account                         (13,026)           (13,105)

Equity Shareholders' funds                       12,834             (1,139)

Non equity share capital

Convertible secured loan stock                        -                851

Total Shareholders' funds                        12,834               (288)



NOTES

1. Exceptional Items 
   The exceptional items for the year to 30 June 2000 of £15,263 comprises of a 
   write-back of £122,113 in respect of creditors as a result of approval of the

   company voluntary arrangement that took place on 10 January 2000 and a charge
   of £106,850 in respect of pension and compensation payments made to former 
   directors and employees for loss of office.
   
2. Profit/(loss) per share

                                                   2000               1999
                                                   £000               £000

   Profit/(loss) for the financial year          78,295         (2,054,000)
   Number of shares in issue 
    (weighted average)                      445,905,688         35,045,753
   Basic profit/(loss) per share                   0.02p              (5.8)p

The exceptional items per share and the profit/(loss) per share before    
exceptional items have not been disclosed since they are insignificant.

The fully diluted earnings per share has not been given because this is not
significantly different from the basic earnings per share.


                                                                                
                                                                                
                                                                     

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