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Osborne & Little PLC (OSL)


Thursday 14 June, 2001

Osborne & Little PLC

Final Results

Osborne & Little PLC
14 June 2001

                             Osborne & Little plc

                             Preliminary Results

                       for the year ended 31 March 2001

Chairman's Statement

Financial Overview

The difficult trading patterns that we experienced in the first half of the
year have flowed through into the second half.

Profit before tax was down 23% at £4,237,000 (2000 - £5,529,000) and earnings
per share down 25% at 42.7p (2000 - 56.7p).

Turnover was up 4% at £40.9 million (2000 - £39.3 million) although the whole
of this 4% increase was due to US dollar currency translation.

Our policy has always been to sell a significant part of our US dollar revenue
up to two years forward, in order to avoid exaggerated fluctuations in
profitability.  We believe our policy to be prudent, although a benefit to
last year's reported group profits of about £750,000 would have arisen, if we
had not entered into such contracts.

Net cash balances at the end of March were £1.8 million compared with £5.4
million at the start of the year.  The reasons for the reduction were:

*         A shortfall in profits compared with last year.

*         An increase in stock levels, undertaken with the objective of
          providing better service levels.

*         The payment of a special supplementary dividend.

*         The purchase, for cancellation, of 128,000 of our own shares.

As I reported in my Interim Statement, on 23 October 2000 we moved from a full
listing on the London Stock Exchange to the Alternative Investment Market.


The Board has decided to maintain the final dividend per share at 19p.  This
will be paid on 20 July 2001 to shareholders on the register at close of
business on 29 June 2001.

North America

Sales were up 15% at £20.4 million (2000 - £17.8 million), although 10% of
this increase was due to currency rate exchange.  This market now represents
50% of total Group sales.

In the course of the year we opened two new showrooms in San Francisco and
Boston, the first wholly owned and the second in conjunction with our Boston
agent.  Sales are well ahead in both markets, justifying the investment.

In the current year we will be opening new showrooms in Philadelphia and
Dallas, both in partnership with our existing agents.

There is a widespread view that the American economy will slow down this year,
and we are taking measures to prune certain costs in anticipation of tougher
trading conditions.

John Englert, who has been our general manager since we started the USA
subsidiary in 1986 is retiring this month, and I would like to take this
opportunity of thanking him for the important contribution he has made to our
success across the Atlantic.

United Kingdom

At the half way stage UK sales were marginally ahead.  Regrettably there was a
decline of some 8% in the second half with the result that full year sales
were down 4% at £13.5 million (2000 - £14 million).  UK sales represent 33% of
total Group sales.

Many competitors are also reporting challenging market conditions, due in
part, we believe, to the current fashion for plainer interiors.

I am confident, however, that our recent Spring launch of 13 collections is
very strong across all brands.

Rest of the World

Sales to the rest of the world, representing 17% of total Group sales, were
down 6% at £7 million (2000 - £7.5 million), not helped by the slippage of
some 5% in the value of the Euro against the pound.  In the course of the year
we renovated our own showroom in Paris, and our designated areas in our
agents' showrooms in Oslo and Brussels.  This programme of showroom renovation
will continue into the current year with the aim of updating most of the
principal European showrooms with a more contemporary look.

New Computer System

A week ago we successfully implemented the first phase of a new computer
system using SAP Software.  The immediate benefits include fabric piece
control and bar-coding throughout the warehouse which will result in improved
stock control and customer service.  The second phase will occur later this
year when the USA subsidiary will also integrate the whole of its operations.
The final phase will be offering e-commerce facilities to our agents and
distributors worldwide.

The implementation of the new computer system has put additional pressures on
members of staff in the past year and I would like to thank all concerned for
their contributions to this major project.

Current Trading and Prospects

Although trading in our principal markets continues to be challenging, we look
forward to a successful outcome to the year.

Sir Peter Osborne Bt.


14 June 2001


Year ended 31 March                                Notes      2001         2000
                                                              £000         £000
Turnover                                                     40919       39,325
Cost of sales                                             (16,718)     (16,498)
Gross profit                                                24,201       22,827
Operating profit                                             4,108        5,353
Interest receivable                                            129          176
Profit on ordinary activities before taxation                4,237        5,529
Taxation on ordinary activities                            (1,612)      (1,996)
Profit for the year                                          2,625        3,533
Dividends                                              1   (1,953)      (2,929)
Retained profit for the year                                   672          604
Earnings per share                                     2     42.7p        56.7p
Diluted earnings per share                             2     41.6p        55.4p

All activity has arisen from continuing operations.

There is no material difference between the profit on ordinary activities
before taxation and the retained profit for the year stated above and their
historical cost equivalents.


At 31 March                                                 2001          2000
                                                            £000          £000
Fixed assets                                               4,589         4,067
Current assets
Stocks                                                     9,016         7,218
Debtors                                                    6,125         6,125
Cash                                                       1,776         5,429
Current assets                                            16,917        18,772
Current liabilities
Creditors                                                  9,022        10,525
Equity shareholders' funds                                12,484        12,314


Year ended 31 March                                               2001     2000
                                                                  £000     £000
Profit for the year                                              2,625    3,533
Currency translation differences on foreign currency
Net investments                                                     87      (7)
Total recognised gains and losses for the year                   2,712    3,526


Year ended 31 March                                            2001        2000
                                                      Note     £000        £000
Cash inflow from operating activities                    3    3,492       6,689
Returns on investments and servicing of finance
Interest received                                               129         176
Taxation                                                    (2,135)     (1,963)
Capital expenditure
Purchase of tangible fixed assets                           (1,700)     (1,190)
Sale of tangible fixed assets                                    59         131
                                                            (1,641)     (1,059)
Equity dividends paid                                       (2,912)     (1,931)
Cash (outflow)/ inflow before financing                     (3,067)       1,912
Purchase of own shares                                        (589)           -
(Decrease)/ increase in cash                                (3,656)       1,912


1.            Dividends

The Directors have paid and now propose the following dividends in respect of
the year ended 31 March 2001

                                                                  2001     2000
                                                                  £000     £000
Interim paid of 13p (2000 - 13p) per share                         793      810
Proposed final of 19p (2000 - 19p) per share                     1,160    1,184
Special supplementary of nil (2000 - 15p) per share                  -      935
                                                                 1,953    2,929

If approved at the Annual General Meeting on 17 July 2001, the proposed final
dividend should be paid on 20 July 2001 to shareholders on the register at
close of business on 29 June 2000.

2.            Earnings per share

Basic earnings per share is calculated using the profit on ordinary activities
after tax and the weighted  average number of ordinary shares in issue during
the year. For diluted earnings per share the weighted average number of
ordinary shares is adjusted to assume conversion of all dilutive potential
ordinary shares. Full details are given below:

                                   2001     Per                 2000        Per
                    Earnings  Number of   share  Earnings  Number of      share
                                 shares  Amount               shares     amount
                           £                            £
Basic earnings per  2,625,000  6,147,921 42.70p 3,533,000  6,230,965     56.70p
Effect of dilutive                     
Options                    -     162,000 (1.10)p       -     151,500    (1.35)p
Diluted earnings    2,625,000  6,309,921 41.60p 3,533,000  6,382,465     55.35p
per share

3.            Reconciliation of operating profit to operating cash flows

                                                                    2001   2000
                                                                    £000   £000
Operating profit                                                   4,108  5,353
Depreciation, net of profits and losses on sale of fixed assets    1,203  1,012
(Increase)/ decrease in stocks                                   (1,798)    499
(Increase) in Debtors                                                  -  (929)
(Decrease)/ increase in creditors                                   (21)    754
Net cash inflow from operating activities                          3,492  6,689

4.            Consolidated results

The consolidated results shown do not constitute full accounts for the Group.
The Group's accounts for the year ended 31 March 2001 received an unqualified
Audit Report on 14 June 2001. Copies of the full accounts for the year ended
31 March 2001 will be circulated to shareholders for approval at the Annual
General Meeting, which will be held on 17 July 2001.

            The Group's accounts for the year ended 31 March 2001 received an
unqualified Audit Report and have been filed with the Registrar of Companies.


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