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Yorklyde PLC (YKLD)

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Friday 07 April, 2000

Yorklyde PLC

Final Results - Year Ended 31 January 2000

Yorklyde PLC
7 April 2000

                                 

                           Yorklyde plc
                                 
     Preliminary results for the year ended 31st January 2000

Yorklyde  plc, a manufacturer of high value cloth and  accessories
for the luxury goods sector and high specification fabrics for use
in   the  transport  industry,  today  announced  its  preliminary
results:

Key features:

* Turnover decreased by 14% to £16.2m (1999: £19.0m); losses
  before  taxation  and exceptional items of  £1.5m  (1999:  £1.3m
  loss)

* Results hit by impact of continued worldwide weakness in  retail
  demand for luxury cashmere products

* Extensive  further  cost  cutting  and  restructuring  to  bring
  output in line with sales activity

* Dividend for the year maintained at 2.5p per share (1999: 2.5p)

* Agreed  purchase  of Whiteley & Green, a specialist  in  country
  wear  fabrics  with  a similar market profile and  complementary
  products to the Group's apparel businesses

* Year  end  net asset value stood at 147p, despite an exceptional
  write-down of £555,000

* Yorklyde to take advantage of permission granted to buy back  up
  to 10% of the Group's issued share capital

Commenting on the results, Charles Brook, Chairman, said:

'The Group is financially strong with a healthy balance sheet.  We
have  set  in motion the necessary changes for the development  of
the  Group  and  look  forward  to a  more  positive  future  with
confidence.

'I  am  pleased to report that all divisions are now  experiencing
improved order books against the same period last year and we  are
optimistic that, at last, we are beginning to see an upturn in the
Group's fortunes in the current year.'

For further information, please contact:

Yorklyde plc                                         01484 683 611
Charles Brook, Chairman

Ludgate Communications                               0171 253 2252
Reg Hoare
                                 
                                 
                       Chairman's Statement
                                 
Introduction

The  difficulties  in manufacturing industry in  general  and  the
textile  industry  in  particular have been very  well  documented
publicly  and our results show that we have continued to find  the
business environment extremely challenging.  This has resulted  in
the  Group reporting a loss before taxation and exceptional  items
for  the  year  ended  31  January 2000 of  £1.5m  which  is  very
disappointing.

During  the  period we have taken steps to rationalise  the  Group
structure in order to meet the changed trading environment we  are
now  experiencing.   However,  I am pleased  to  report  that  all
divisions  are now experiencing improved order books  against  the
same period last year and we are optimistic that, at last, we  are
beginning to see an upturn in the Group's fortunes in the  current
year.

Results

Turnover  fell  by  14% to £16.2m (1999: £19.0m).   Losses  before
taxation and exceptional items increased from £1.3m to £1.5m.

In  addition, in view of the conditions generally in  the  textile
industry  and  in  light  of our own current  reorganisation,  the
Directors have carried out a comprehensive review of the assets of
all  the  divisions  and have made an exceptional  write  down  of
£555,000  on the assets of Arthur Bell and William Edleston  which
have  both been incurring ongoing operating losses.  This complies
with the accounting standard FRS 11 relating to the impairment  of
assets.  The Directors are now confident that the current value of
the  net  assets of the Group is in excess of its historic balance
sheet value per share of 147p.

A  further  reduction  in stock of £1.3m,  following  last  year's
reduction of £2.1m, helped to reduce the cash outflow to £337,000.
This  has  marginally increased gearing from 7.4%  to  10.4%.   To
reflect  the  improved  prospects your Directors  are  pleased  to
propose a final dividend of 1.5p (1999: 1.0p) per share, giving  a
total of 2.5p (1999: 2.5p) for the year, payable on 3rd July  2000
to the shareholders on the register on 9th June 2000.

Divisional Review

During  the last year we have been faced with the difficulties  of
the  retail trading environment internationally, a currency  which
has  continued to be exceptionally strong and has thus  materially
affected sales and margins, particularly in Europe, and a  fashion
that  has  continued  to focus on the 'minimalistic'  approach  to
present  a colour range of predominantly black and grey.   However
there  are now positive signs of return to colour and design which
can  only be of benefit to the Group and which is resulting in  an
upturn in the activity level in all our divisions to which I  have
already  referred.   This  should have a positive  effect  on  our
current  year's  results particularly as the  Group  has  invested
heavily to upgrade all its manufacturing units and is thus able to
take  advantage of the change in trading environment without being
faced with material additional capital expenditure.

I  indicated last year that we were reviewing our Group  structure
and  during  the  year we announced the transfer  of  the  William
Edleston  business from Halifax to the Moorhouse & Brook  site  in
Huddersfield.  Whilst there is still a small amount  of  machinery
to  move over during the next few months, the business itself  was
transferred in February and is now operating from its new site and
as  with other divisions is experiencing an increased interest  in
its  product range.  We have also exchanged contracts for the sale
of  the  premises  in Halifax for the net book value  of  £530,000
which should be completed in the near future.

Tim  Hoyle, who has been with the Moorhouse & Brook division  over
21  years,  left  at  the  end  of  February  to  join  a  textile
consultancy operation and we wish him every success with this.   I
would like to thank him for his support over the years and all the
efforts  he has made in the development of the Moorhouse  &  Brook
division.   He is succeeded as Managing Director by Ernest  Cliffe
who was Managing Director of our William Edleston division and who
has  moved  to  Huddersfield to assume  control  of  the  combined
businesses.

During  the last year Arthur Bell suffered greatly from the strong
currency particularly in Germany, its main market, and the  dearth
of  colour in fashion.  After carefully reviewing the prospects we
have  taken the decision to transfer the finishing department  and
administration  to  our  site  in  Peebles  whilst  retaining  the
spinning,  warping  and weaving as well as  the  sales  office  in
Langholm.   This  is  designed  to  have  a  positive  benefit  in
financial terms without materially affecting the production of the
Arthur  Bell  range.  It is intended that this  change  will  take
place during the summer shut down to minimise loss of production.

At  the same time Tom Scott, our Managing Director at Arthur Bell,
is  retiring  after 12 years service with the Group  and  I  would
personally  like to thank him for all that he has done to  develop
the  Arthur Bell business, which, despite the recent difficulties,
has  in  recent  years  become one of the  major  players  in  the
jacketing  trade.   Following  his retirement  Roland  Brett,  our
Managing  Director  of Robert Noble and Replin Fabrics  will  also
assume responsibility for the Arthur Bell division.

Following a difficult year at Westcountry Clothing changes in this
division  have now been made with a new Managing Director  joining
us  in  February.   We  are already seeing  the  benefit  of  this
appointment  with a much more positive approach to the  sales  and
marketing of the division's product line under the Invertere label
as  well  as the traditional Westcountry products.  Following  the
recent  changes  in  the  clothing  industry  where  most  of  the
manufacturers  have  moved  'offshore'  we  are  experiencing   an
increased level of interest in this division's products.

Alex  Begg  has been consistently profitable during the  last  two
difficult  years.   Despite the loss of  volume  business  through
wholesalers,  the division has considerably expanded its  customer
base  and has developed a wide range of business with top  fashion
houses  in  the USA, Europe and elsewhere.  In addition Begg  have
recently  developed an exclusive range of products from the  newly
available  luxury quality Escorial fibre.  This superfine  branded
wool  is  proving  extremely successful  in  the  highest  quality
outlets both in the USA and in Europe.

Replin  Fabrics  has also remained profitable  during  the  recent
period and the hard work undertaken by the sales and marketing and
design staff is beginning to show through, not only in fabrics for
the  airline industry, but also in new markets such as fabric  for
buses, trains and cruise liners.

Robert  Noble  had  a  difficult year  but  has  recently  seen  a
significant  improvement in demand for its products,  particularly
ladies wear.

Future Strategy

The  Directors  have given much consideration to the  longer  term
development  of  the Group's range of products and  believe  that,
with the current restructuring of the textile industry as a whole,
there  are good opportunities for the Group to add on 'top of  the
range'  niche products and brands to their existing range  without
acquiring extra sites and additional manufacturing overheads.

During  the year the Directors looked at a number of opportunities
with a view to expanding the Group's activities and product range.
Following one potential acquisition which fell through  due  to  a
failure  to  agree a mutually acceptable price, we  have  recently
agreed  heads of agreement to purchase the business of Whiteley  &
Green.  This business specialises in country wear fabrics and,  as
well as being a supplier of our Westcountry/Invertere division, it
has  a similar market profile to that of the other apparel members
of the Group with a complimentary range of products.

At the same time we have decided to increase the production in our
spinning  facility  in  the  Moorhouse  &  Brook  division.   This
development  will  enable  us to fully utilise  the  equipment  we
already  have  in  this  division  by  supplying  both  the   yarn
requirements within the Group and orders from outside the Group.

Share Buy Back

We have also been examining ways in which we can improve the share
price  performance  and as a result of our  discussions  with  our
various  advisers  we intend to take advantage of  the  permission
granted  to  the Company which allows us to buy up to 10%  of  the
issued share capital.

Prospects

In  conclusion the Group has been through a very difficult  period
during  which we have had to face up to a new trading  environment
and  but  for a dedicated and very loyal workforce we  would  have
found the transition very hard indeed.  We are indebted to all our
staff  for  their patience and understanding of our  difficulties.
The Group is financially strong with a healthy balance sheet.   We
have  set  in  motion  the  various  changes  necessary  for   the
development  of  the  Group and look forward to  a  more  positive
future with confidence.


Charles Brook
Chairman
                                 
                                 
                                 
                                 
                           Yorklyde Plc
               Consolidated Profit and Loss Account
               for the year ended 31st January, 2000

                                                    2000    1999
                            Before  Exceptional    Total
                       Exceptional        items
                             £'000        £'000    £'000   £'000

Turnover                    16,236                16,236  18,979
Operating  costs            17,636          555   18,191  20,088
                           -------       ------   ------  ------
Group operating loss       (1,400)         (555)  (1,955) (1,109)

Interest                       100            -      100     183
                           -------       ------   ------  ------

Loss before taxation        (1,500)        (555)  (2,055) (1,292)

Taxation                      (250)         (74)    (324)   (619)
                           -------       ------   ------  ------
Loss for the financial
  year                      (1,250)        (481)  (1,731)   (673)

Dividends                      281            -      281     281
                           -------       ------   ------  ------
Loss for the financial
  year                      (1,531)        (481)  (2,012)   (954)
                           -------       ------   ------  ------
Loss per ordinary share
Basic    and   diluted                             (15.4)p (6.0)p
                                                  ------  ------

There  were no recognised gains or losses other than the  loss  of
the  group of £1,731,000 in the year ended 31 January 2000  (1999:
£673,000).
                                 
                                 
                           Yorklyde Plc
                    Consolidated Balance Sheet
                     as at 31st January, 2000

                                               2000         1999
                                              £'000        £'000

Fixed assets
Intangible assets                               125          131
Tangible assets                               9,966       10,711
                                           --------     --------
                                             10,091       10,842
                                           --------     --------

Current assets
Stocks                                        7,627        8,901
Debtors                                       3,215        2,886
Cash at bank and in hand                         21           20
                                           --------     --------
                                             10,863       11,807
                                           --------     --------

Creditors - amounts
  falling due within one year
Trade and other creditors                     3,948        3,417
Dividend                                        169          112
                                           --------     --------
                                              4,117        3,529
                                           --------     --------
Net current assets                            6,746        8,278
                                           --------     --------
Total  assets less current liabilities       16,837       19,120              
                                           --------     --------

Creditors - amounts falling
  due after more than one year
Deferred income - government grants             191          162

Provisions for liabilities and charges
Deferred taxation                                97          397
                                           --------     --------
Total assets less liabilities                16,549       18,561
                                           --------     --------
Capital and reserves
Called-up share capital                       1,124        1,124
Share premium account                         2,721        2,721
Profit and loss account                      12,704       14,716
                                           --------     --------
Equity shareholders' funds                   16,549       18,561
                                           --------     --------


                           Yorklyde Plc
                 Consolidated Cash Flow Statement
               for the year ended 31st January, 2000
                                 
                                               2000        1999
                                              £'000        £'000

Operating activities
Net cash inflow from operating activities       349        2,846
                                           --------     --------

Returns on investments and 
 servicing of finance
Interest received                                 3            -
Interest paid                                  (105)        (192)
                                           --------     --------
Interest                                       (102)        (192)

Taxation
Corporation tax received/(paid)                 379         (153)
                                           --------     --------
Net cash inflow before capital
  expenditure and acquisitions                  626        2,501
                                           --------     --------
Capital expenditure
Purchase of tangible fixed assets              (822)        (988)
Sale of tangible fixed assets                    48          120
Government grants received                       35            -
                                           --------     --------
Net cash outflow from capital expenditure      (739)        (868)
                                           --------     --------
Acquisitions
Purchase of subsidiary undertaking                -         (131)
                                           --------     --------
Equity dividends paid                          (224)        (433)
                                           --------     --------
(Decrease)/Increase in cash                    (337)       1,069
                                           --------     --------




Notes:


1.  The  calculation  of  loss  per ordinary  share  is  based  on
11,240,000 ordinary shares, being the weighted average  number  of
ordinary  shares  in  issue  during the  period,  and  a  loss  of
£1,731,000.

2.  A  copy of these results will be sent to shareholders on  12th
May 2000.

3.  Copies  of  the Report & Accounts will be available  from  the
Company  Secretary, Moorbrook Mills, New Mill,  Huddersfield,  HD7
7JZ after 12th May 2000.

4.  The Company's Annual General Meeting will be held at 11.30  am
on  28th  June 2000 at the Three Acres Hotel, Roydhouse,  Shelley,
Huddersfield, HD8 8LR.


                                                                                                                                                                                                                                                       

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