RNS Number:4099U
Bespak PLC
20 January 2004


For Immediate Release                                          20 January 2004


                                   Bespak plc

               Interim Results for the 26 weeks to 1 November 2003

Bespak plc (LSE: BPK), an innovator in drug delivery, today announces its
interim results for the 26 weeks to 1 November 2003 (2002: 26 weeks to 1
November 2002).

KEY POINTS

*  Recovery from prior year in line with plan, showing strong volume growth of 
   HFA valves and Device & Manufacturing Services (DMS) products

*  Sales of products and services decreased 4% to #39.9m (2002: #41.4m) and, 
   including sales of tooling and equipment, turnover decreased 9% to #40.4m
   (2002: #44.2m re-presented)

*  Group operating profit before exceptional items increased 43% to #5.0m 
   (2002: #3.5m).

*  Profit before tax and exceptional items increased 24% to #5.1m (2002:
   #4.1m) and, after exceptional costs of #2.0m arising from the continuing
   restructuring (2002: #1.5m exceptional gain), profit before tax decreased 45% 
   to #3.1m (2002: #5.6m)

*  Earnings per share before exceptional items increased 20% to 13.7p (2002: 
   11.4p) and, after exceptional items, declined 52% to 8.1p (2002: 17.0p)

*  Interim dividend of 7.0p maintained (2002: 7.0p)

*  Balance sheet remains strong - net cash of #8.4m

*  John Robinson today appointed as Chairman to replace Sir David Cooksey - see 
   separate release.

Mark Throdahl, Chief Executive of Bespak, commented:

"Last summer we said that we would return Bespak to previous levels of
performance and that we were encouraged by the strong fundamentals in our
businesses.  Since that time the Company's recovery has continued in line with
our plan. Implementation of the restructuring programme is expected to be
completed this financial year and we expect to benefit from the full year impact
of these cost savings next financial year. Finally, we are delighted to welcome
John Robinson as Chairman of the Board."

For further information please call:

Bespak plc
Mark Throdahl - Chief Executive               On 20.01.04:  +44 (0) 20 7466 5000
Martin Hopcroft - Group Finance Director     Thereafter: +44 (0) 20 1908 552 600

Buchanan Communications                                     +44 (0) 20 7466 5000
Tim Thompson/Mark Court/ Mary-Jane Johnson


                                   Bespak plc

            Interim Results for the 26 weeks to 1 November 2003

Summary

During the first half, Bespak's financial performance was in line with plan as a
result of significant cost reduction measures, solid trading in Respiratory and
exceptional volumes in Device & Manufacturing Services. Implementation of the
restructuring programme announced in April has proceeded on schedule and is
expected to generate previously indicated annualised savings, which will be
fully reflected in our next financial year.  The Group's overall performance
continues in line with the Board's expectations.

Sales of products and services decreased 4% to #39.9m (2002: #41.4m) and,
including sales of tooling and equipment, turnover decreased 9% to #40.4m (2002:
#44.2m re-presented). Group operating profit before exceptional items increased
43% to #5.0m (2002: #3.5m).  Expenses were controlled well in the first half and
the Group's operating profit margin before exceptional items increased to 12.4%
(2002: 7.9%).  Profit before tax and exceptional items increased 24% to #5.1m
(2002: #4.1m) and, after exceptional costs of #2.0m arising from the continuing
restructuring (2002: #1.5m exceptional gain), profit before tax decreased 45% to
#3.1m (2002: #5.6m). Earnings per share before exceptional items increased 20%
to 13.7p (2002: 11.4p) and, after exceptional items, declined 52% to 8.1p (2002:
17.0p).

The Board is maintaining an interim dividend of 7.0 pence per share, which is
payable on 20 February 2004 to those on the shareholder register on 30 January
2004.

Net cash was #8.4m as at 1 November 2003, exceeding expectations due to lower
than budgeted capital expenditure and better than expected working capital
movements.

Operational Review

Respiratory Drug Delivery

Respiratory sales, comprising metered dose inhaler valves, actuators, medical
check valves and nasal delivery devices, equalled last year's level of #17.7m.
We experienced strong HFA growth to European customers, offset by decreased
sales of CFC valves.

Bespak's valves for use with environmentally friendly HFA propellants are
replacing CFC-based formulations in Europe.  For the time being, no such trend
is evident in the US, which remains predominantly a CFC market.  Our 357 and
Easifill HFA valves are under active consideration by a number of current and
prospective customers, and Bespak believes it has won the valve contracts for
nearly two-thirds of the HFA formulations approved around the world.  HFA sales
were 37% of valve sales whereas, in the comparable period last year, HFA sales
were 21% of valve sales.

In November, we formally opened our new valve manufacturing plant in King's
Lynn.  This #10m facility offers our customers the latest valve moulding and
assembly infrastructure and provides us with highly efficient manufacturing
capacity for future market share growth.  During the past five years we have
committed over #55m of capital expenditure to the expansion and renewal of our
manufacturing facilities, culminating in completion of the King's Lynn valve
plant. We are achieving productivity improvements from this investment.

Devices & Manufacturing Services (DMS)

This business provides a comprehensive range of device-related services to
pharmaceutical and drug delivery companies.  Sales decreased 3% to #19.4m (2002:
#20.1m). This reflects lower pricing on our lead contract manufactured product
partly offset by exceptional volume growth.  Additionally, we enjoyed
significant sales to Abbott Laboratories on a product begun a year ago.

Over the last six months, DMS has achieved its cost reduction and throughput
goals for its largest product, and expected gross margins are now being
achieved.

Working in close collaboration with Nektar Therapeutics of San Carlos,
California, we have finalised the manufacturing process for the inhaler device
that will deliver the world's first inhaled insulin.  This exciting new product,
Exubera(R), should benefit millions of diabetic patients around the world.
Nektar is in a collaboration with Pfizer Inc. to develop the inhalation device
and formulation process for Exubera(R). Pfizer has also entered into an
agreement with Aventis to co-develop, co-promote and co-manufacture Exubera(R).

In October, we announced a collaboration with Britannia Pharmaceuticals to
develop a novel clinical approach to prevent the formation of surgical
adhesions; post-surgical scar tissue that in the US alone requires nearly $2
billion in hospital and surgical costs to correct.  Under the terms of a
development agreement, Bespak will develop at its own expense the delivery
device for Britannia's AdSurf(R), which is now in Phase III clinical trials.  We
will together seek a licensing partner to manage world-wide sales of the
product, and Bespak and Britannia will share in royalties from Adsurf(R) sales
and milestone payments.

We also entered into a development agreement on IntrajectTM with Aradigm, the
drug delivery company in Hayward, California which acquired the needle-free
injector technology from Weston Medical last year. Bespak was Weston Medical's
development partner prior to the sale

Consumer Dispensers

This business manufactures pumps for consumer household products, toiletries and
fragrances.  As a result of weak demand from a number of customers, sales
declined 22% to #2.8m (2002: #3.7m). Development of a new proprietary spray pump
is now entering its final stage and we plan to launch this product in the Spring
together with other product line extensions.

Cost Saving Programmes

In April, we announced a series of significant actions to reduce our cost base
and return the Group to previous levels of performance. We are now confident
that these programmes will generate targeted full year savings, which will be
fully reflected in our performance in the next financial year.

There have been three elements of cost-saving.  First, in April last year we
curtailed Nasal formulation development programmes, which were meeting technical
milestones but could not provide short-term financial returns.  Second, in June
we removed 25 positions in North America with the objective of eliminating
long-running losses. Third, we identified 105 positions to be eliminated from UK
operations.  Most of these positions were removed in July and November, with the
remainder going this month.

New Chairman

Sir David Cooksey has been a director of Bespak for ten years and has served as
Chairman for the past eight years.  It is with deep appreciation that we bid him
farewell after a long and fruitful association with our Company.

Sir David will step down as Chairman from the Board of Bespak today and we are
delighted to announce the appointment of John Robinson as the new Chairman of
the Company.  From 1990 to 1997 John was Chief Executive of Smith & Nephew plc,
the largest UK-based medical technology company.  He was subsequently Chairman
until 2000. John is Chairman of George Wimpey plc, Paragon Healthcare Group and
Chairman and Pro-Chancellor of the University of Hull.  He will bring
outstanding industry experience and stature to our Company.

Outlook

In Respiratory, we expect that a reduction in CFC valve sales will be offset by
the continuing growth of HFA valve sales. While we anticipate CFC demand to
continue for some years in the US, we cannot forecast precisely its duration or
level.

In the second half, the DMS business will continue to benefit from exceptional
volumes of its lead product.  However, it is not anticipated that volumes of
this product will be maintained in the following year. We remain optimistic
about the prospects for the Exubera(R) inhaler device, although we cannot
predict when full-scale production will commence.

We are confident that our Consumer Dispensers business will benefit next
financial year from the introduction of a new proprietary spray pump and other
product line extensions.

Implementation of the restructuring programmes will be completed this financial
year so that we will benefit from full year cost savings next financial year.
With completion of the King's Lynn valve plant, capital spending will be
substantially reduced.

Around 10% of the Group's sales from the UK are denominated in US dollars.
Therefore, continuing weakness of the US dollar will impact our performance next
financial year, subject to compensatory actions.

Having achieved performance in line with our plan in the first half, we are
looking forward to driving our business forward with continuing profit
improvement.

Mark C. Throdahl
Chief Executive
19 January 2004

Consolidated Profit and Loss Account

                                         Unaudited     Unaudited    Unaudited      Unaudited      Audited
                                       26 weeks to   26 weeks to  26 weeks to    26 weeks to  52 weeks to
                                        1 November    1 November   1 November     1 November        3 May
                                              2003          2003         2003           2002         2003
                                            Before   Exceptional        Total          Total        Total
                                       exceptional         items                Re-presented
                                             items                                  (Note 1)
                              Note            #000          #000         #000           #000         #000

Sales of products and                       39,931             -       39,931         41,397       79,887
services

Sales of tooling and                           428             -          428          2,814        8,423
equipment

Turnover                        2           40,359             -       40,359         44,211       88,310

Operating expenses              3         (35,361)       (2,029)     (37,390)       (40,724)     (87,180)

Group operating profit          2            4,998       (2,029)        2,969          3,487        1,130

Share of joint ventures and                   (69)             -         (69)            367          325
associates

Total operating profit                       4,929       (2,029)        2,900          3,854        1,455

Profit on sale of associate     3                -             -            -          1,502        1,439

Net interest receivable         4              191             -          191            285          391

Profit on ordinary                           5,120       (2,029)        3,091          5,641        3,285
activities before taxation

Taxation                        5          (1,477)           525        (952)        (1,118)        (499)

Profit for the financial                     3,643       (1,504)        2,139          4,523        2,786
period

Dividends                                                             (1,866)        (1,859)      (5,071)

Retained profit/(loss)                                                    273          2,664      (2,285)

Basic and diluted earnings      6                                       13.7p          11.4p        11.5p
per share before exceptional
items (pence)
Basic and diluted (loss)/       6                                      (5.6p)           5.6p       (1.0p)
earnings per share on
exceptional items (pence)
Basic and diluted earnings      6                                        8.1p          17.0p        10.5p
per share (pence)

Dividends per share (pence)     7                                        7.0p           7.0p        19.1p

Operating expenses for the 52 weeks to 3 May 2003 include #2,365,000 for
exceptional charges (see note 3).


Consolidated Balance Sheet
                                                                        Unaudited    Unaudited      Audited
                                                                       1 November   1 November        3 May
                                                                             2003         2002         2003
                                                              Note           #000         #000         #000
Fixed assets
Intangible assets                                                               -          540            -
Tangible assets                                                            63,219       62,273       64,132
Investments                                                                 1,276        1,631        1,397
                                                                           64,495       64,444       65,529

Current assets
Stocks                                                                      4,684        3,729        3,514
Debtors                                                                    11,821       11,904       12,729
Short-term investments                                                     16,743       22,206       16,365
Cash at bank and in hand                                                      928        1,929        1,678
                                                                           34,176       39,768       34,286

Creditors: Amounts falling due within one year                  8        (24,627)     (26,252)     (25,786)

Net current assets                                                          9,549       13,516        8,500

Total assets less current liabilities                                      74,044       77,960       74,029

Creditors: Amounts falling due after more than one year         8           (795)            -        (731)

Provisions for liabilities and charges                          9         (6,061)      (5,889)      (6,265)

Net assets                                                                 67,188       72,071       67,033

Capital and reserves
Called up share capital                                                     2,681        2,679        2,679
Share premium account                                                      23,054       23,010       23,010
Profit and loss account                                                    41,453       46,382       41,344

Equity shareholders' funds                                                 67,188       72,071       67,033



Consolidated Cash Flow Statement


                                                                        Unaudited    Unaudited      Audited
                                                                      26 weeks to  26 weeks to  52 weeks to
                                                                       1 November   1 November        3 May
                                                                             2003         2002         2003
                                                              Note           #000         #000         #000

Net cash inflow/(outflow) from operating activities            10           5,668        (325)        2,975

Dividends received from associates                                              -            -            9

Returns on investment and servicing of finance
Interest received                                                             318          556          866

Interest paid                                                               (144)        (255)        (443)

                                                                              174          301          423

Taxation
UK corporation tax                                                          (322)      (1,495)      (2,088)
Overseas tax                                                                 (26)           14           41
                                                                            (348)      (1,481)      (2,047)

Capital expenditure and financial instruments
Payments to acquire intangible fixed assets                                     -        (133)         (70)
Payments to acquire tangible fixed assets                                 (3,430)      (8,459)     (15,703)
Receipts from sales of tangible fixed assets                                   33          542          597
                                                                          (3,397)      (8,050)     (15,176)

Acquisitions and disposals
Purchase of fixed asset investments                                          (39)         (61)        (122)
Receipts from sale of associate                                                 -        2,440        2,379
                                                                             (39)        2,379        2,257

Equity dividends paid                                                     (3,214)      (3,212)      (5,070)

Net cash outflow before management of liquid resources and                (1,156)     (10,388)     (16,629)
financing

Management of liquid resources
(Decrease)/increase in short-term investments                               (378)        9,267       15,108

Financing
Payment for shares                                                            289           22           22
Net decrease in loans                                                     (1,840)      (1,995)      (1,971)
Net cash outflow from financing                                           (1,551)      (1,973)      (1,949)

Decrease in net cash                                                      (3,085)      (3,094)      (3,470)



Statement of Total Recognised Gains and Losses

                                                                        Unaudited    Unaudited      Audited
                                                                      26 weeks to  26 weeks to  52 weeks to
                                                                       1 November   1 November        3 May
                                                                             2003         2002         2003
                                                                             #000         #000         #000

Profit for the financial period                                             2,139        4,523        2,786

Exchange movements on foreign currency net investments                      (164)        (318)        (415)

Total recognised gains and losses for the period                            1,975        4,205        2,371



Reconciliation of Movements in Equity Shareholders' Funds


                                                                        Unaudited    Unaudited      Audited
                                                                      26 weeks to  26 weeks to  52 weeks to
                                                                       1 November   1 November        3 May
                                                                             2003         2002         2003
                                                                             #000         #000         #000

Equity shareholders' funds brought forward                                 67,033       69,703       69,703

Profit for the financial period                                             2,139        4,523        2,786

Dividends                                                                 (1,866)      (1,859)      (5,071)

Exchange movements on foreign currency net investments                      (164)        (318)        (415)

Movement relating to QUEST                                                      -            -            8

Issue of ordinary share capital                                                46           22           22

Equity shareholders' funds carried forward                                 67,188       72,071       67,033



Notes to the Accounts

1.                  Basis of preparation and accounting policies

The unaudited results for the 26 weeks to 1 November 2003 have been prepared in
accordance with UK Generally Accepted Accounting Principles. The accounting
policies applied are those set out in the Group's Annual Report and Accounts for
the 52 weeks to 3 May 2003.

In accordance with the change in accounting policy for turnover that was
implemented for the 52 weeks to 3 May 2003, turnover for the 26 weeks to 1
November 2002 has been re-presented on the same basis to include sales of
tooling and equipment within turnover and related costs within operating
expenses. The effect on the comparative 26 weeks to 1 November 2002 is to
increase turnover and operating expenses by #2,814,000. This reclassification
does not affect the operating profit or net assets.

The charge for taxation on the profits for the 26 weeks to 1 November 2003 has
been calculated by reference to the estimated effective tax rate for the 52
weeks to 1 May 2004.

The consolidated profit and loss account and consolidated cash flow statement
for the 52 weeks to, and the balance sheet at, 3 May 2003 are an abridged
statement of the full Group Accounts for that period which have been delivered
to the Registrar of Companies.  The report of the Auditors on the Accounts for
the 52 weeks to 3 May 2003 was unqualified and did not contain a statement under
either section 237(2) or section 237(3) of the Companies Act 1985.

2.                  Segmental information

                                                                     26 weeks to    26 weeks to  52 weeks to
Turnover by business                                                  1 November     1 November        3 May
                                                                            2003           2002         2003
                                                                                   Re-presented
                                                                                       (Note 1)
                                                                            #000           #000         #000

Respiratory                                                               17,651         17,622       35,409
Device & Manufacturing Services                                           19,449         20,123       37,751
Consumer Dispensers                                                        2,831          3,652        6,727
Sales of products and services                                            39,931         41,397       79,887
Sales of tooling and equipment                                               428          2,814        8,423
                                                                          40,359         44,211       88,310


                                                                     26 weeks to    26 weeks to  52 weeks to
Turnover by destination                                               1 November     1 November        3 May
                                                                            2003           2002         2003
                                                                                   Re-presented
                                                                                       (Note 1)
                                                                            #000           #000         #000

United Kingdom                                                            16,748         20,166       37,017
United States of America                                                  12,025         14,776       31,184
Europe                                                                     8,581          5,449       12,664
Rest of the World                                                          3,005          3,820        7,445
                                                                          40,359         44,211       88,310


Notes to the Accounts


2.                  Segmental information (continued)

                                                                     26 weeks to    26 weeks to  52 weeks to
Turnover by origin                                                    1 November     1 November        3 May
                                                                            2003           2002         2003
                                                                                   Re-presented
                                                                                       (Note 1)
                                                                            #000           #000         #000

United Kingdom                                                            35,334         39,011       78,224
United States of America                                                   7,987         10,953       22,254
Total sales                                                               43,321         49,964      100,478
Intra-group sales                                                        (2,962)        (5,753)     (12,168)
                                                                          40,359         44,211       88,310


                                                                     26 weeks to    26 weeks to  52 weeks to
Group operating profit by origin                                      1 November     1 November        3 May
                                                                            2003           2002         2003
                                                                                   Re-presented
                                                                                       (Note 1)
                                                                            #000           #000         #000
United Kingdom
Group operating profit before exceptional operating expenses               5,489          3,502        4,058
Exceptional operating expenses                                           (1,749)              -      (2,208)
                                                                           3,740          3,502        1,850
United States of America
Group operating loss before exceptional operating expenses                 (491)           (15)        (563)
Exceptional operating expenses                                             (280)              -        (157)
                                                                           (771)           (15)        (720)
Group
Group operating profit before exceptional operating expenses               4,998          3,487        3,495
Exceptional operating expenses                                           (2,029)              -      (2,365)
                                                                           2,969          3,487        1,130


                                                                       1 November   1 November        3 May
Net assets by origin                                                         2003         2002         2003
                                                                             #000         #000         #000

United Kingdom                                                             55,935       52,542       51,293
United States of America                                                   10,677       12,613       15,745
Allocated net assets                                                       66,612       65,155       67,038
Unallocated net assets/(liabilities)                                          576        6,916          (5)
                                                                           67,188       72,071       67,033


Average rate of exchange #1 Sterling : US $                                  1.63         1.52         1.56
Closing rate of exchange #1 Sterling : US $                                  1.69         1.56         1.60


3.                  Exceptional items

                                                                    26 weeks to  26 weeks to  52 weeks to
                                                                     1 November   1 November        3 May
                                                                           2003         2002         2003
                                                                           #000         #000         #000

Exceptional operating expenses                                          (2,029)            -      (2,365)
Profit on sale of associate                                                   -        1,502        1,439
Exceptional items before taxation                                       (2,029)        1,502        (926)
Taxation                                                                    525            -          648
Exceptional items after taxation                                        (1,504)        1,502        (278)


The exceptional operating expenses comprise employee severance costs,
curtailment of nasal formulation activities, and costs incurred with the profit
forecast and bid approaches.

Notes to the Accounts

4.                  Net interest receivable

                                                                      26 weeks to  26 weeks to  52 weeks to
                                                                       1 November   1 November        3 May
                                                                             2003         2002         2003
                                                                             #000         #000         #000
Interest receivable
Interest receivable on deposits                                               284          537          842
Interest receivable other                                                       -            -           29
Associates                                                                      1            -            -
                                                                              285          537          871
Interest payable
Bank overdrafts and loans                                                    (94)        (239)        (469)
Associates                                                                      -         (13)         (11)
                                                                             (94)        (252)        (480)

Net interest receivable                                                       191          285          391


5.                  Taxation
                                                                      26 weeks to  26 weeks to  52 weeks to
                                                                       1 November   1 November        3 May
                                                                             2003         2002         2003
                                                                             #000         #000         #000

Current taxation                                                            1,112          791            6
Deferred taxation                                                           (140)          166          327
Share of taxation of associates                                              (20)          161          166
                                                                              952        1,118          499

6.                  Earnings per share
                                                                    26 weeks to  26 weeks to  52 weeks to
                                                                     1 November   1 November        3 May
                                                                           2003         2002         2003

Profit for the financial period before exceptional items (#000)           3,643        3,021        3,064
Exceptional items after taxation (#000) (Note 3)                        (1,504)        1,502        (278)
Profit for the financial period (#000)                                    2,139        4,523        2,786

Weighted average number of shares in issue                           26,802,153   26,789,515   26,790,505
Shares owned by Employee Share Ownership Trusts                       (238,936)    (249,466)    (245,793)
Average number of shares in issue for basic earnings                 26,563,217   26,540,049   26,544,712
Dilutive impact of share options outstanding                                 95      124,709           95
Diluted average number of shares in issue                            26,563,312   26,664,758   26,544,807

Basic and diluted earnings per share before exceptional items              13.7         11.4         11.5
(pence)
Basic and diluted (loss)/earnings per share on exceptional items          (5.6)          5.6        (1.0)
(pence)
Basic and diluted earnings per share (pence)                                8.1         17.0         10.5



7.                  Dividends

The interim dividend of 7.0p (2002: 7.0p) will be paid on 20 February 2004 to
shareholders on the register on 30 January 2004.

Notes to the Accounts

8.                  Creditors


                                                                     1 November   1 November        3 May
                                                                           2003         2002         2003
                                                                           #000         #000         #000
Amounts falling due within one year
Loans falling due within one year                                             -        1,945        1,873
Bank overdrafts & loans - unsecured                                       9,279        7,406        7,350
Proposed dividend                                                         1,864        1,858        3,212
Corporate taxation                                                        1,181        1,870          761
Other creditors                                                          12,303       13,173       12,590
                                                                         24,627       26,252       25,786
Amounts falling due after more than one year
Other creditors                                                             795            -          731
                                                                            795            -          731



9.                  Provisions for liabilities and charges


                                                                         Deferred         Post        Total
                                                                         taxation   retirement
                                                                                      benefits
                                                                             #000         #000         #000

At 4 May 2003                                                               5,727          538        6,265
Profit and loss account                                                     (140)         (47)        (187)
Exchange rate adjustments                                                       -         (17)         (17)
At 1 November 2003                                                          5,587          474        6,061



10.              Cash flow from operating activities


                                                                      26 weeks to  26 weeks to  52 weeks to
                                                                       1 November   1 November        3 May
                                                                             2003         2002         2003
                                                                             #000         #000         #000

Group operating profit                                                      2,969        3,487        1,130
Depreciation                                                                3,743        3,516        7,116
Amortisation of intangible fixed assets                                         -           30          507
(Decrease)/increase in amount provided against investment in own            (197)          128          264
shares
Amount provided on revaluation of fixed asset investment                        -            -           78
(Profit)/loss on sale of tangible fixed assets                               (11)          155          484
Profit on sale of fixed asset investment                                     (83)            -            -
Increase in stocks                                                        (1,216)        (386)        (187)
Decrease/(increase) in debtors                                                650      (1,932)      (2,655)
Decrease in creditors                                                       (140)      (5,337)      (3,998)
(Decrease)/increase in provisions                                            (47)           14          236
Net cash inflow/(outflow) from operating activities                         5,668        (325)        2,975


Operating cash flow in the 26 weeks to 1 November 2003 includes an outflow of
#1,775,000 relating to exceptional operating expenses in the 26 weeks to 1
November 2003 and an outflow of #1,195,000 relating to exceptional operating
expenses in the 52 weeks to 3 May 2003.

Operating cash flow in the 52 weeks to 3 May 2003 includes an outflow of
#725,000 relating to exceptional operating expenses in the 52 weeks to 3 May
2003.

Notes to the Accounts

11.              Reconciliation of net cash flow to movement in net funds

                                                             4 May         Cash      Exchange    1 November
                                                              2003         flow     Movements          2003
                                                              #000         #000          #000          #000

Cash at bank and in hand                                     1,678        (736)          (14)           928
Overdrafts and short-term loans                            (7,350)      (2,349)           420       (9,279)
Net overdrafts and short-term loans                        (5,672)      (3,085)           406       (8,351)
Loans and leasing obligations                              (1,873)        1,840            33             -
Short-term investments                                      16,365          378             -        16,743
Net funds                                                    8,820        (867)           439         8,392
Financing items included in cash flow movements
Payment for shares                                                        (289)
Net cash outflow before management of liquid
resources and financing
                                                                        (1,156)




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