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Osborne & Little PLC (OSL)


Friday 30 November, 2001

Osborne & Little PLC

Interim Results

Osborne & Little PLC
30 November 2001

                             OSBORNE & LITTLE Plc
                               Interim Results
                   for the half year ended 30 September 2001

Chairman's Statement

Financial Overview

The difficult trading conditions that we experienced last year have continued
through into the current year.  Additionally, certain adverse factors have
arisen in the first half which have affected our performance.  I will go into
these in some detail below as I believe they are largely one-off and do not
reflect the on-going health and profitability of the Company.

Turnover was down 9% at £18.1 million (2000 - £20 million).  We made a loss,
before taxation, for the period of £308,000 against a profit in the previous
period of £2,310,000.  The loss per share was 5.79p (2000 - restated profit
per share of 23.7p). As our balance sheet remains strong, and because we
believe we will see an early return to profitability, we have decided to
maintain the interim dividend at 13p per share.  This will be paid on 18
January 2002 to shareholders on the register at close of business on 14
December 2001.

The particular one-off factors that I referred to earlier are as follows:

*         In June we introduced a new advanced computer system to replace the
existing 15 year old one.  We overran on budgeted costs by some £300,000 and
our timetable by several weeks, impacting seriously on sales in June and July.
Such overruns appear to be endemic to the I.T. industry and the additional
costs and delays that arose were extremely difficult to forecast.

On a positive note we do now have a highly sophisticated, integrated computer
system that will add benefits and efficiencies to our business in the years

*         We took the opportunity, whilst changing over to a bar-coded
warehousing system, to clear out a build up of short ends of fabric.  This
entailed stock write-downs of some £200,000.

*         The horrific events of September 11 impacted hugely on the figures
for that month, usually one of our most profitable months, with sales down
some 30%.

A brief overview of our major markets follows:

North America

Sales for the period were down 7% at £9.6 million, representing 53% of total
Group Sales.  We extended our showroom presence throughout the USA with the
appointment of agents in the Michigan Design Centre and, in conjunction with
our agents in Philadelphia, we opened a new, self-contained, 4000 sq ft space.
A highlight was the doubling of sales in San Francisco, following the
opening of our new showroom there last year.

United Kingdom

Sales for the period were down 12% at £5.5 million.  Contract sales have been
particularly hard hit as a result of the pronounced slow down in hotel
refurbishment expenditure.

Rest of the World

Sales for the period were down 9% at £3 million.  The two markets where we
have our own sales teams, France and Germany, produced disappointing, albeit
small, losses.  Cost cutting measures are already in hand to turn these two
markets into positive profit centres.

We are also in the throes of identifying other areas where savings can be
made, and I will be in a position to report further on this in my next

Current Trading and Prospects

There are signs of a small improvement in the trading environment, in the
first few weeks of the second half of the year.  With the combination of
excellent new collections launched in the autumn, and cost savings already in
hand, we anticipate a return to profit in the second half.

Sir Peter Osborne Bt

30 November 2001


Osborne & Little plc 020 8675 2255
Sir Peter Osborne (Chairman)
Peter Soar (Finance Director)

for the half year ended 30 September 2001

                           Notes  Half year ended  Half year ended   Year ended
                                     30 September     30 September      31March
                                             2001             2000         2001
                                                      (restated as (restated as
                                                       per note 5)  per note 5)
                                             £000             £000         £000
Turnover                                   18,108           19,951       40,919
Cost of sales                             (7,876)          (8,201)     (16,718)
Gross profit                               10,232           11,750       24,201
Operating (loss)/ profit                    (308)            2,217        4,108
Net interest                                    -               93          129
(Loss)/ profit on ordinary                  (308)            2,310        4,237
activities before taxation
Taxation on ordinary       (1)               (45)            (840)      (1,464)
(Loss)/ profit on ordinary                  (353)            1,470        2,773
activities after taxation
Dividends                                   (793)            (793)      (1,953)
Retained (loss)/ profit                   (1,146)              677          820
for the period
(Loss)/ earnings per share (2)            (5.79)p           23.74p       45.10p
Diluted (loss)/ earnings   (2)            (5.79)p           23.13p       43.95p
per share
Dividends per share -                         13p              13p          32p

All activity has arisen from continuing operations.

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

as at 30 September 2001

                                 Notes           30        30                31 
                                          September September             March
                                               2001      2000              2001
                                                    (restated  (restated as per
                                                           as  note 5)
                                                     per note
                                               £000      £000              £000
Fixed assets                                  4,631     4,354             4,589
Current assets
Stocks and work in progress                   8,859     9,166             9,016
Debtors: amounts falling due                  6,772     6,304             6,734
within one year
Cash at bank and in hand         (3)          1,743     2,070             1,776
                                             17,374    17,540            17,526
Creditors: amounts falling due   (3)         10,135     8,866             9,022
within one year
Net current assets                            7,239     8,674             8,504
Equity shareholders' funds                   11,870    13,028            13,093

for the half year ended 30 September 2001

                                      Notes      Half year   Half year    Year
                                                     ended       ended    ended
                                              30 September          30 31 March
                                                      2001   September
                                                                  2000      2001

                                                      £000        £000     £000
Cash inflow from operating activities (4)              (5)         751    3,492
Returns on investments and servicing                     -          93      129
of finance
Taxation                                             (264)       (804)  (2,135)
Capital expenditure                                  (669)       (816)  (1,641)
Equity dividends paid                              (1,157)     (2,119)  (2,912)
Purchase of own shares/ share                         (53)       (451)    (589)
(Decrease) in cash                                 (2,148)     (3,346)  (3,656)

for the half year ended 30 september 2001

                              Half year ended  Half year ended       Year ended
                                 30 September     30 September         31 March
                                         2001             2000             2001
                                              (restated as per (restated as per
                                                       note 5)          note 5)
                                         £000             £000             £000
(Loss)/ profit for the year             (353)            1,470            2,773
Currency translation differences
on foreign currency
net investments                          (25)               47               87
Total recognised gains and losses       (378)            1,517            2,860
for the year

30 September 2001

1.                  Taxation

The tax charge for the half year ended 30 September 2001 has been based on the
estimated tax rate for the full year.

2.         (Loss)/ earnings per share

Basic (loss)/ 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 the half year ended 30 September 2000 diluted
earnings per share, the weighted average number of ordinary shares is adjusted
to assume conversion of all dilutive potential ordinary shares. For the half
year ended 30 September 2001, the effect of the options is anti-dilutive due
to the loss for the period. Full details are given below:

                Half year ended 30         Half year ended 30 September 2000
                September 2001             (restated as per note 5)

                   Losses    Number    Per    Earnings   Number        Per share
                        £ of shares  share           £   of shares        amount

Basic (loss)/   (353,000) 6,095,424 (5.79)p  1,470,000   6,192,632        23.74p
earnings per                             
Effect of
Options                 -         -      -           -     162,000       (0.61)p

Diluted (loss)/ (353,000) 6,095,424 (5.79)p  1,470,000   6,354,632        23.13p
earnings per                             

3.                  Analysis of net debt

                         1 April  Cashflow Exchange movement 30  September 2001
                            £000      £000              £000               £000

Cash at bank and in hand   1,776      (42)                 9              1,743
Bank overdraft                 -   (2,106)                 -            (2,106)
                           1,776   (2,148)                 9              (363)

4.         Reconciliation of operating profit to operating cash flows

                                Half year ended 30  Half year ended 30    Year
                                    September 2001      September 2000   ended
                                              £000                £000    £000
Operating profit                             (308)               2,217   4,108
Depreciation charges                           599                 571   1,161
(Profit)/ loss on sale  of                     (8)                  18      42
tangible fixed assets
Decrease/ (increase) in stocks                 157             (1,948) (1,798)
Decrease in debtors                            124                 282       -
(Decrease) in creditors                      (569)               (389)    (21)
Net cash(outflow)/  inflow                     (5)                 751   3,492
from operating activities

5.         Change in accounting policy

From 1 April 2001 the Group is adopting the new accounting standard FRS19:
Deferred Tax which requires full provision to be made for deferred tax arising
from timing differences between the recognition of gains and losses in the
financial statements and their recognition in the tax computation. In adopting
FRS19, the Group has chosen not to discount deferred tax assets and
liabilities. The comparative figures for 2000 have been restated to reflect
the impact of FRS 19.  Consequently the shareholders' funds at 30 September
2000 and 31 March 2001, as published previously, have been increased by £
461,000 and £609,000 respectively to reflect recognition of the additional
asset in respect of deferred tax. The impact of FRS19 in the Profit and Loss
Account on the tax charge was:-

                                            30 September  30 September 31 March
                                                    2001          2000     2001
                                                    £000          £000     £000
(Increase)/ decrease in tax charge                  (31)            19      148

6.         Preparation of Interim Financial Information

The financial information set out herein has been prepared using accounting
policies consistent with the previous year, but does not comprise full
financial statements within the meaning of the Companies Act 1985 and has not
been audited.

The full year comparatives were extracted from the full Group Accounts which
received an unqualified audit report and have been delivered to the Registrar
of Companies.

7.                  Interim Report

Copies of this Interim Report were despatched to shareholders on 30 November
2001 and are available from the Company Secretary at the registered office of
Osborne & Little plc at:

49 Temperley Road,
SW12 8QE
Tel: 020 8675 2255
Fax: 020 8772 9200
Email: [email protected]


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