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Osborne & Little PLC (OSL)

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Thursday 28 November, 2002

Osborne & Little PLC

Interim Results

Osborne & Little PLC
28 November 2002

                              Osborne & Little plc

                                Interim Results

                   for the half year ended 30 September 2002





CHAIRMAN'S STATEMENT


FINANCIAL OVERVIEW


Whilst our results for the first half of the year are an improvement on the
comparable period last year, it is disappointing that they are not markedly
better.  Weak demand in all our major markets has resulted in a 6% drop in
turnover to £16.9 million (2001 - £18.1 million).  The loss before taxation has
reduced to £60,000, against a loss last year of £308,000.



There has been a positive cash inflow from operating activities of £1.2 million,
which after capital expenditure of £417,000, and buying in 72,538 of our own
shares at a cost of £213,000, resulted in a cash increase of £583,000.  At the
halfway stage we were in a net cash position.  Our policy on dividends is to
distribute to shareholders a substantial part of our annual profits. In the
absence of such profits, and notwithstanding our strong balance sheet, we have
decided not to declare an interim dividend.  We remain committed, however, to
returning to dividend payments at the earliest opportunity.



In my last Chairman's Statement, in June 2002, I listed a range of cost saving
measures that we had implemented.  Some have already taken effect and some will
only do so in the second half of the year and into next year.  Staff levels have
fallen, from the beginning of this financial year, by some 8% largely as a
result of not replacing staff who have left.  We continue to look at other ways
in which costs can be reduced without sacrificing quality or service.



A brief overview of our major markets follows:-



NORTH AMERICA



Sales were down 8% at £8.8 million (2001- £9.6 million). In dollar terms they
reduced by 4%, which is an improvement on last year when they were down 10%.

We now have showroom presence in two new locations, Laguna Niguel (in
California) and Honolulu. In Dallas our agents have moved to a new showroom and
allocated us 6,000 sq ft, giving us our largest showroom presence of anywhere in
the USA.



UNITED KINGDOM



Sales were down 4%, at £5.3 million (2001- £5.5 million).  Again, whilst this is
an improvement on last year's fall of 12%, it is disappointing that we are not
seeing real growth.



We launched 13 collections in September from our three brands, Osborne & Little,
Nina Campbell and Liberty Furnishings. The initial reaction has been extremely
encouraging.



REST OF THE WORLD



Sales were down 6% overall at £2.8 million (2001- £3.0 million).  European
markets are proving to be particularly challenging, with weak demand and a
strong pound impacting on margins.



CURRENT TRADING AND PROSPECTS



Whilst trading in our principal markets shows little sign of improving
significantly in the months ahead, there are one or two bright spots;  staffing
and other costs are coming down and our business to business e-commerce facility
will soon become fully operational, giving a boost to our service capabilities.
However, whilst the second half has historically been stronger than the first,
we can only be cautious about the full year's outcome.



Sir Peter Osborne Bt.

Chairman

28 November 2002



Enquiries

Osborne & Little plc 020 8675 2255

Sir Peter Osborne Bt. (Chairman) 07799 691757

Peter Soar (Finance Director) 020 8675 2255


UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the half year ended 30 September 2002


                                                        Notes   Half year ended   Half year ended    Year ended
                                                              30 September 2002 30 September 2001      31 March

                                                                                                           2002
                                                                           £000              £000          £000
Turnover                                                                 16,943            18,108        36,552
Cost of sales                                                           (7,297)           (7,876)      (15,406)
Gross profit                                                              9,646            10,232        21,146
Operating (loss)/ profit                                                   (14)             (308)           494
Net interest                                                               (46)                 -          (80)
(Loss)/ profit on ordinary activities before                               (60)             (308)           414
taxation
Taxation on ordinary activities                           (1)                17              (45)         (178)
(Loss)/ profit on ordinary activities after                                (43)             (353)           236
taxation
Dividends                                                                     -             (793)         (793)
Retained (loss) for the period                                             (43)           (1,146)         (557)
(Loss)/ earnings per share                                (2)           (0.71)p           (5.79)p         3.87p
Diluted (loss)/ earnings per share                        (2)           (0.71)p           (5.79)p         3.78p
Dividends per share - ordinary                                              nil               13p           13p



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.



ABRIDGED UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30 September 2002


                                                       Notes     30 September 2002    30 September      31 March
                                                                                              2001          2002
                                                                              £000            £000          £000
Fixed assets                                                                 4,257           4,631         4,494
Current assets
Stocks and work in progress                                                  7,892           8,859         7,843
Debtors: amounts falling due within one year                                 6,515           6,772         7,313
Cash at bank and in hand                                     (3)             1,528           1,743         1,398
                                                                            15,935          17,374        16,554
Creditors: amounts falling due within one year
Bank overdrafts                                              (3)             1,298           2,106         1,846
Creditors                                                                    6,714           8,029         6,706
                                                                             8,012          10,135         8,552
Net current assets                                                           7,923           7,239         8,002
Equity shareholders' funds                                                  12,180          11,870        12,496






ABRIDGED UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 30 September 2002


                                                        Notes   Half year ended   Half year ended    Year ended
                                                              30 September 2002      30 September 31 March 2002
                                                                                             2001
                                                                           £000              £000          £000
Cash inflow/ (outflow) from operating activities          (4)             1,210               (5)         1,595
Returns on investments and servicing of finance                            (46)                 -          (80)
Taxation                                                                     49             (264)         (577)
Capital expenditure                                                       (417)             (669)       (1,175)
Equity dividends paid                                                         -           (1,157)       (1,953)
Purchase of own shares/ share proceeds                                    (213)              (53)          (49)
Increase/ (decrease) in cash                                                583           (2,148)       (2,239)



UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the half year ended 30 September 2002


                                                               Half year ended Half year ended 30    Year ended
                                                                  30 September           31 March     September
                                                                          2002               2001          2002
                                                                          £000               £000          £000
(Loss)/ profit                                                            (43)              (353)           236
Currency translation differences on foreign currency
net investments                                                           (61)               (25)             9
Total recognised gains and losses                                        (104)              (378)           245



NOTES

30 September 2002



1.    Taxation

The tax for the half year ended  30 September 2002 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 (loss)/ profit on
ordinary activities after tax and the weighted  average number of ordinary
shares in issue during the year. The effect of the options is anti-dilutive due
to the loss for the period. Full details are given below:


                                         Half year ended 30 September 2002   Half year ended 30 September 2001
                                         Losses        Number    Per share      Losses      Number  Per share
                                              £     of shares       amount           £   of shares     amount
Basic loss per share                   (43,000)     6,070,633      (0.71)p   (353,000)   6,095,424    (5.79)p
Effect of dilutive securities:
Options                                       -             -            -           -           -          -
Diluted loss per share                 (43,000)     6,070,633      (0.71)p   (353,000)   6,095,424    (5.79)p






3.      Analysis of net funds/ (debt)


                                                        1 April                      Exchange     30  September
                                                           2002      Cashflow        movement              2002
                                                           £000          £000            £000              £000
Cash at bank and in hand                                  1,398            35              95             1,528
Bank overdraft                                          (1,846)           548               -           (1,298)
                                                          (448)           583              95               230





4.      Reconciliation of operating (loss)/ profit to operating cash flows


                                                               Half year ended   Half year ended    Year ended
                                                             30 September 2002 30 September 2001      31 March
                                                                                                          2002
                                                                          £000              £000          £000
Operating (loss)/ profit                                                  (14)             (308)           494
Depreciation charges                                                       564               599         1,226
(Profit)/ loss on sale  of tangible fixed assets                          (11)               (8)            38
(Increase)/ decrease in stocks                                            (49)               157         1,173
Decrease/ (Increase)  in debtors                                           738               124         (359)
(Decrease) in creditors                                                   (18)             (569)         (977)
Net cash inflow/ (outflow) from operating activities                     1,210               (5)         1,595





5.        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.



6.        Interim Report

Copies of this Interim Report were despatched to shareholders on 28 November
2002 and are available from the Company Secretary at the registered office of
Osborne & Little plc at:



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



                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                              

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