Interim Results

RNS Number:6349T
Shelton (Martin) Group PLC
29 December 2003



                            Martin Shelton Group plc

                             Interim Report for the
                       Six months ended 30 September 2003

Chairman's statement

The results for the six months to 30 September 2003 show increased turnover of
#2,372,000 (2002: #2,219,000) and decreased losses before tax of #608,000 (2002:
#638,000).

I am pleased to report that the sale of the Leathergoods division was completed
on 25 September 2003 for a consideration of approximately #570,000. After
repayment of associated debt of #280,000 this provides the Group with
significant additional resources to develop the core Business Gifts division.

In my statement in the Report and Accounts for the year ended 31 March 2003 I
outlined a number of strategies which had been implemented to improve
efficiencies and margins at the Business Gifts division.

In summary these were the rationalisation of the range of diary product options
for 2003/04 and investment in state-of-the-art equipment for automatically
inserting bespoke pages into completed diaries. The greater flexibility afforded
by this equipment has enabled a fundamental change in production methodology,
allowing advance production of stocks of completed diaries and the full range of
calendars during the early part of the year.

It is pleasing to see the successful impact of these strategies. However it
should be noted that the financial impact will depend ultimately upon the
successful targeting and management of the sales force strategy, increasing the
network of sales agents and the dedicated resources for increasing each of trade
sales and commercial binding sales.

During the first half of the year the commercial binding service has recorded a
30% increase in turnover and the calendar and diary business has recorded a 29%
increase in turnover. This has enabled the division to absorb #115,000 property
rental costs (2002: #Nil) following the sale & leaseback of the division's
manufacturing premises during October 2002.

Recent consolidations within the betting industry have resulted in a 9%
reduction in turnover at the Betting Office Supplies division although further
productivity improvements have helped to mitigate the impact on overall
profitability.

In the light of the results the Board has decided that no interim dividend will
be paid. A decision on the recommendation for a final dividend will be taken in
June next year.


H A Dunlop
Chairman
23 December 2003

The unaudited results of Martin Shelton Group PLC for the six months ended 30
September 2003 together with comparative figures for 2002 and year ended 31
March 2003 are as follows:

Consolidated profit and loss account

                                                Half year ended       Year ended
                                                 30 September           31 March
                                                2003         2002           2003
                                                #000         #000           #000
Turnover
    Continuing operations                      1,986        1,727          5,947
    Discontinued operations                      386          492          1,077
                                               -------      -------       -------
                                               2,372        2,219          7,024
                                               =======      =======       =======

Operating loss before exceptional items
    Continuing operations                       (517)        (519)          (434)
    Discontinued operations                      (61)         (30)           (45)
                                               -------      -------       --------
                                                (578)        (549)          (479)
Exceptional items:
    Profit on disposal of fixed assets             -            -            900
    Provision for loss on disposal of              -            -            (66)
    operations to be discontinued
                                               -------      -------       --------
                                                (578)        (549)           355
Interest                                         (30)         (89)          (128)
                                               -------      -------       --------
(Loss)/profit
on ordinary
activities
before
taxation                                        (608)        (638)           227
Taxation
credit/(charge)                                  182          191            (23)
                                               -------      -------       --------
Results
carried to
reserves                                        (426)        (447)           204
                                               =======      =======       ========

(Loss)/earnings
per ordinary
share                                          (7.97p)      (8.36p)         3.82p
                                               =======      =======       ========

Summarised group balance sheet

                                               At 30 September      At 31 March
                                               2003         2002           2003
                                               #000         #000           #000

Tangible fixed assets                         1,430        2,734          1,604

Net current assets                            1,562          105          1,568

Creditors: due after more than 1 year          (278)        (370)           (32)

Provisions for liabilities and charges         (125)        (105)          (125)
                                              -------      -------       --------
Net assets                                    2,589        2,364          3,015
                                              =======      =======       ========

Capital and reserves                          2,589        2,364          3,015
                                              =======      =======       ========

Summarised consolidated cash flow statement

                                                  Half year ended     Year ended
                                                     30 September       31 March                                        
                                                   2003        2002         2003
                                                   #000        #000         #000

Net cash (outflow)/inflow from
operating activities                               (589)        106           24

Returns on investment and servicing of
finance                                             (30)        (89)        (128)

Capital expenditure and financial
investment                                           83         (26)       1,849

Acquisitions and disposals                          555           -            -
                                                  -------     -------      -------
Cash inflow/(outflow) before use of
liquid resources and financing                       19          (9)       1,745

Financing                                           (36)       (163)        (610)
                                                  -------     -------      -------
Decrease in cash in the period                      (17)       (172)       1,135
                                                  =======     =======      =======

Notes

1. Taxation has been credited at 30%.

2. Loss per share is based on the loss after taxation of #426,000 (2002:
#447,000) and on the 5,345,000 ordinary shares (2002: 5,345,000 ordinary
shares).

3. The actual results for the year ended 31 March 2003 and the summarised
balance sheet at that date as shown in this statement are an abridged version of
the Group's financial statements which have been filed with the Registrar of
Companies and which received an unqualified audit report. The other financial
information contained within this report is unaudited. The financial information
contained within this report has been prepared on the basis of the accounting
policies set out in the most recent set of annual financial statements.

4.  A copy of this statement will be sent to shareholders and
will be available for collection from the Company's registered office at 37
Burley Road, Leeds, LS3 1JT and from the offices of the Company's nominated
adviser and broker KBC Peel Hunt Ltd, 111 Old Broad Street, London, EC2N 1PH for
a period of 1 month from the date it is sent to shareholders.

5.  This interim report was approved by the Board of Directors
on 23 December 2003.



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