Interim Results

RNS Number:0121T
Theo Fennell PLC
09 December 2003

9 December 2003

                                Theo Fennell plc
                                 Interim Report
                   for the six months ended 30 September 2003


                              FINANCIAL HIGHLIGHTS

   * Turnover up 26% over last year (#7.5m vs #5.9m)

   * Operating loss reduced to #98,000 from #300,000 last year

   * First full year for new management team

   * Additional new outlets now trading in time for the important Christmas
     season


The Chairman, Richard Northcott, commented:

"The overall improvement this year is the result of strong planning by the new
management team and a continually improving product offer. We have started the
new financial year on a positive note."


For further information:

Richard Northcott                          Chairman              020 7589 3097
Richard Fallowfield / Rupert Pittman       CardewChancery        020 7930 0777


Theo Fennell Plc
Chairman's Statement

I am pleased to announce that the Company's unaudited accounts for the 26 weeks
ended 30 September 2003 show that sales for the period were #7.5 million
representing a 26% improvement over last year, (#5.9 million). This increase
resulted in a significant reduction in our operating loss for the six months
from #299,681 to #98,362.

This will be our first full year of operation for the new management team and
the overall improvement reflects both strong planning and a much improved
product offer. The Company continues to benefit from the recently re-designed
jewellery department in Selfridges and sales from its new concession in Harvey
Nichols, Manchester.

As always Christmas is crucial but we approach it with cautious optimism.

Richard Northcott
Chairman
9 December 2003


Theo Fennell Plc
Profit and Loss Account (Unaudited)
for the six months ended 30 September 2003

                          Six months       Six months             Year
                            ended 30         ended 30         ended 31
                           September        September            March
                                2003             2002             2003
                                   #                #                #
Turnover                   7,508,200        5,969,719       13,817,951
Cost of sales             (6,988,488)      (5,715,457)     (12,512,358)
Gross profit                 519,712          254,262        1,305,593
Administrative expenses     (618,074)        (553,943)      (1,141,316)
Operating (loss) / profit    (98,362)        (299,681)         164,277
Net interest payable         (54,066)         (30,100)         (68,489)
(Loss) / profit on   
ordinary activities
before taxation             (152,428)        (329,781)          95,788
Tax on (loss) / profit  
on ordinary activities        43,244           92,989           17,881
(Loss) / profit for 
the financial period        (109,184)        (236,892)         113,669
(Loss) / profit per share      (0.67)p          (1.46)p           0.70p


Theo Fennell Plc
Balance Sheet (Unaudited)
as at 30 September 2003

                                   As at 30        As at 30        As at 31
                                  September       September           March
                                       2003            2002            2003
                                          #               #               #
Fixed Assets   
Tangible assets                     559,128         448,454         465,868

Current assets      
Stocks                            7,995,646       7,197,887       7,941,654
Debtors                           2,236,149       1,996,345       1,894,656
Cash at bank and in hand              9,219           2,120           8,454
                                 10,241,014       9,196,352       9,844,764

Creditors: amounts falling 
due within one year              (4,193,138)     (4,279,179)     (4,594,444)

Net current assets                6,047,876       4,917,173       5,250,320

Total assets less current  
liabilities                       6,607,004       5,365,627       5,716,188

Creditors: amounts falling   
due after one year               (1,000,000)              -               -

Net assets                        5,607,004       5,365,627       5,716,188

Capital and reserves    
Called up share capital             808,892         808,892         808,892
Share premium account             3,879,752       3,879,752       3,879,752
Profit and loss account             918,360         676,983       1,027,544
Shareholders' funds               5,607,004       5,365,627       5,716,188


Theo Fennell Plc
Cash Flow Statement (Unaudited)
for the six months ended 30 September 2003

                               Six months     Six months           Year
                                 ended 30       ended 30       ended 31
                                September      September          March
                                     2003           2002           2003
                                        #              #              #
Net cash (outflow) from 
operating activities             (313,242)      (813,055)      (403,420)

Returns on investment and 
servicing of finance       
Net interest paid                 (54,066)       (30,100)       (68,489)

Taxation            
Corporation tax paid                    -              -              -

Capital expenditure              
Purchase of fixed assets         (195,948)      (116,853)      (235,974)
Sale of fixed assets                    -              -         12,399

Net cash outflow before 
financing                        (563,256)      (960,008)      (695,484)

Financing                           
Capital element of hire
purchase agreements                     -         (2,292)        (2,292)
Issue of convertible loan note  1,000,000

Increase/(Decrease) in cash       436,744       (962,300)      (697,776)


Theo Fennell Plc
Notes

1.  The financial statements for the period under review have not been
    audited or reviewed by the Company's auditors, Grant Thornton, but have
    been reviewed and approved by the Audit Committee.

2.  The results for the year ended 31 March 2003 are taken from the statutory
    financial statements, which were reported on by the Company's auditors
    without qualification. These have been filed with the Registrar of 
    Companies.

3.  The calculation of loss per share is based upon the loss on ordinary 
    activities after taxation of #109,184 (six months ended 30 September 2002: 
    loss of #236,892; year ended 31 March 2003: profit of #113,669) and the 
    weighted average number of shares of 16,177,831 for all periods.

4.  Cash flow from operating activities:

                               Six months   Six months          Year
                                 ended 30     ended 30      ended 31
                                September    September         March
                                     2003         2002          2003
                                        #            #             #
Operating (loss) / profit         (98,362)    (299,681)      164,277
Depreciation charges              102,688)      84,789       176,809
Deficit on disposal of 
fixed assets                            -            -        (2,712)
(Increase) in stocks              (53,992)    (270,599)   (1,014,366)
(Increase) in debtors            (341,493)    (379,612)     (235,674)
Increase in creditors              77,917       52,048       508,246

Net cash (outflow) from
operating activities             (313,242)    (813,055)     (403,420)

5.  A copy of the interim statement will be posted to shareholders and made
    available to the public at the Company's Registered Office, 2b Pond Place,
    London SW3 6TF for one month from the date thereof.

6.  No interim dividend is declared on the ordinary shares.



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