Delaney Group PLC - Final Results

RNS NO 7328V
DELANEY GROUP PLC
1st July 1997


Delaney Group plc - Chairman's Statement

Financial Review

I am very disappointed to have to report a significant loss again
for the year ended 31 December 1996.

I  reported at the interim stage that the final quarter  of  1996
was likely to be critical to the overall outcome for the year  as
a  whole.  In the event trading remained extremely difficult  and
on  top  of  this  we  identified serious  discrepancies  in  the
management  accounts in late October 1996.  We have now  had  the
opportunity  to review the situation and we have found  that  our
internal control procedures relating to stock and cost control at
Christies Panel Products Limited in general had broken down.

We  have now taken action to re-establish these controls  by  the
appointment of some key new senior and middle management.

As a result the Group incurred a loss of #739,000 before tax, but
this was after crediting to the profit and loss account an amount
of  #913,000 resulting from a review of the asset lives of  plant
held within the group.  The loss of #739,000 compares with a loss
before  tax in 1995 of #511,000.  Turnover increased  by  15%  to
#21,798,000   from   #18,911,000  last   year.     Without   this
exceptional  credit of #913,000 the loss for the  year  would  be
#1,652,000.

Overall these results are extremely disappointing.

In  view  of the results your Board will not be recommending  the
payment of a dividend.

On  the issue of funding, you will read from the accounts that my
private company Melton Medes Limited has had to make available to
the  Group significant funds during the year and since  the  year
end.   Further funding is likely to be required and I am  working
on  formalising this.  Our auditors' report will be qualified  in
relation to this future funding.



Trading Review

Order  intake  at  Christies Panel Products, the  main  operating
subsidiary,  was  much  improved  in  the  period  resulting   in
increased turnover of #21.8 million, compared with #18.9  million
in  the  previous  period.   Increased demand  resulted  in  many
inefficiencies and problems.  The manufacturing and  installation
operations  had to be reorganised to meet the increased  demands.
Changes have been put in place since the year end which will help
to mitigate the capacity problems in the manufacturing area.


Management

During  the year various changes took place in the management  at
Christies Panel Products, some had been previous announced.  John
McFarnon left in September 1996 and Stuart Clarke in October 1996
both  as directors of Christies Panel Products as well as Delaney
Group  plc.   Bob Hollick was promoted to the Managing Director's
position of Christies Panel Products Limited from 1 October 1996.

In  December  1996, Livingstone Brown was appointed Manufacturing
Director  at Christies Panel Products.  He has helped  to  reduce
many  of the problems which previously existed.  On 24 June  1997
Anil  Puri was appointed as Operations Director of Delaney  Group
plc.

Prospects

The  difficulties  which  started in  1996  have  taken  time  to
resolve.  Some redundancies had to be implemented this month with
more to follow.  1997 figures will show a loss for the year.  The
business  is being refocused to run at a lower level of activity,
with a view to return it to profitability in 1998.  Your Board is
doing  everything possible within the limited resources available
to  achieve these ends.  In the meantime Delaney Group  continues
to rely on the support of my private company Melton Medes Limited
for its continuance.  I thank you for your patience.





Nathu Puri
Chairman



DELANEY GROUP PLC

PRELIMINARY GROUP PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 December 1996

                                                    1996             1995
                                             #'000  #'000    #'000   #'000
Turnover-continuing operations                      21,798           18,911
                                                                     
Operating loss-continuing operations before         (1,292)            (739)
exceptional credit
Exceptional credit arising on asset                    913               -
relifing
                                                                     
Operating loss on continuing operations               (379)            (739)
Discontinued business segments                          -               387
                                                                     
Loss on ordinary activities before interest           (379)            (352)
Interest receivable and similar income          -                5   
Interest payable and similar charges          (360)   (360)            (159)
                                                             (164)
                                                                     
Loss on ordinary activities before taxation           (739)            (511)
Taxation                                                (8)               -
Loss on ordinary activities after taxation            (747)            (511)
Dividend proposed                                        -                -
                                                                     
Loss for the financial year                           (747)            (511)
                                                                     
Loss per ordinary share of 2p                                          (0.5p)
                                                    (0.7p)
                                                                     
Dividend per ordinary share of 2p                        -p               -p
                                                                     


Notes:

1.   All activities are continuing operations

2.   Earnings per ordinary share are calculated on a share
     capital of 107,062,554 ordinary shares of 2p each.

3.   The accounts have been drawn up on a going concern basis
     which is dependent on continuing financial support from
     Melton Medes Limited, a private company controlled by the
     Chairman, Mr N Puri.  The provision of this support is
     subject to shareholders' approval.
     In view of the limited information available in relation to
     the formalisation of future funding, the auditors' report
     will be appropriately qualified.

4.   The results set out above are not full accounts as defined
     in Section 240 of the Companies Act 1985.  The auditors
     have not yet made a report under Section 235 of the
     Companies Act 1985 on the accounts for the year ended 31
     December 1996 from which results are extracted and
     consequently full accounts for the period have not yet been
     delivered to the Registrar of Companies.

5.   The results for the year ended 31 December 1995 are
     abridged from the statutory accounts for that year which
     have been delivered to the Registrar of Companies.

END