RNS Number:2831M
Partners Holdings PLC
15 June 2000

                             
Partners Holdings plc
'Partners'

Preliminary Results for the year ended 31 March 2000

Partners Holdings plc, the operator of 105 specialist retail stationery
stores, today announces preliminary results for the year ended 31st March
2000.

*    Sales for the year of #42.7million, up 9.9% (1999: #38.9m).

*    Profit before tax and exceptional items of #8,000 (1999: Loss
     #549,000)

*    Underlying like for like sales for the current year, to the 31 May
     2000 increased by 6.3%

Michael Scorey, Chairman, said:

'The current year has started satisfactorily with underlying sales on a
like for like basis increasing by 6.3% to the end of May albeit at
slightly lower gross margins than anticipated. We expect a year of further
consolidation as the rationalisation and repositioning measures taken
previously continue to benefit the business.'


Enquiries:

Partners Holdings Plc
Peter Davey, Chief Executive   Tel: 01270 505 888
Alan Goodwin, Finance Director


College Hill                   Tel: 0207 457 2020
Kate Pope
Nick Elwes


Preliminary Results for the year ended 31st March 2000

The Board of Partners Holdings plc report audited results for the year
ended 31st March 2000

Financial Results

Turnover at #42.7 million, increased by 9.9%, but margins remained under
pressure. Pre-tax profits, after exceptional income of #492,000 and
exceptional costs of #476,000 were #24,000. This compares with a pre-tax
loss, after exceptional costs, of #955,000 last year. A loss after tax
arises as a result of depreciation on fixed assets for which there is no
tax relief. The loss per share was 1.11p (1999:loss 4.30p)

No interim dividend was paid during the year and no final dividend is
proposed. Last year the company paid an interim dividend of 0.5p per share
and no final dividend.

Finance

Net cash inflow for the year from operating activities was #1,556,000 and
net borrowings were reduced at #1.7 million compared to #2.1 million last
year. Capital investment for the year was #994,000. Of this #392,000 was
incurred in fitting out relocated stores and #361,000 on store
refurbishment. Group net assets were #4.8 million.

Current Developments

The main focus of the business this year continues to be to generate
increased growth in both new concept and core stores, principally through
the review and re-engineering of our core product range. We are also
working continuously to reduce the level of discontinued stock created by
this rapid rate of product change.

Our new internet site, Partnersdirect.co.uk, is being developed as a
virtual store with a limited but growing range of our most popular lines.
The site will be fully operational during July and will continue to be
developed throughout the year in the light of customer response.

Outlook

The current year has started satisfactorily with underlying sales on a
like for like basis increasing by 6.3% to the end of May albeit at
slightly lower gross margins than anticipated. We expect a year of further
consolidation as the rationalisation and repositioning measures taken
previously continue to benefit the business.

Michael Scorey
Chairman
15 June 2000


Group Profit And Loss Account
for the year ended 31 March 2000
                                     

                      Before     Exceptional       Before     Exceptional 
                     Exceptional Items          Exceptional   Items
                      Items                        Items    
                       
                       2000      2000       2000    1999       1999     1999
                                 Note 4                        Note 4   
                Notes  #000      #000       #000    #000       #000     #000
                 
                                                                        
Turnover               42,717    -         42,717   38,880     -       38,880
Cost of sales         (39,456)  (476)     (39,932) (36,194)   (104)   (36,298)
                                                  
Gross profit           3,261    (476)      2,785   2,686      (104)    2,582
Distribution costs    (516)      -         (516)   (479)        -      (479)
Administration        (2,778)   492        (2,286) (2,664)    (302)    (2,966)
expenses        
                       (33)      16         (17)   (457)      (406)    (863)
                                                                        
Other net operating    168       -          168     38         -        38
income
                                                                        
Operating profit       135       16         151    (419)      (406)    (825)
/ (loss)
                                                                        
Interest receivable     5         -          5       5          -        5
Interest payable       (132)     -          (132)   (135)      -        (135)
                                                                        
Profit/(Loss)on                                                          
ordinary activities     8         16         24     (549)      (406)    (955)
before taxation
Tax on profit/(loss)                                                          
on ordinary activities 1 (201)   (30)       (231)    87         64       151 

Loss for the                                                            
financial year         (193)     (14)       (207)   (462)      (342)    (804)
                                                                        
Dividends on     3                           -                           (93)
equity shares
                                                                        
Retained loss                               (207)                       (897)
for the year
                                                                        
Loss per share - 2                          (1.11p)                    (4.30p)
basic & diluted                                                      
                                                                        

Statement of Total Recognised Gains and Losses
There are no recognised gains or losses other than the result for each year
shown above


Group Balance Sheet
as at 31 March 2000
                                                            
                                                                
                                                2000            1999
                                                #000            #000
Fixed Assets                                                    
Tangible assets                                 5,793           6,848
Current Assets                                                  
Stock                                           6,689           5,788
Debtors                                         2,251           2,170
Cash at bank and in hand                        58              58
                                                8,998           8,016
Creditors:  amounts falling due within one year (9,510)         (9,119)
Net Current Liabilities                         (512)           (1,103)
                                                                
Total Assets Less Current Liabilities           5,281           5,745
                                                                
Provisions For Liabilities And Charges                          
Deferred Taxation                               (193)           (179)
Accruals And Deferred Income                                    
Deferred income                                 (245)           (516)
                                                (438)           (695)
                                                                
                                                4,843           5,050
                                                                
                                                                
Capital And Reserves                                            
Called up share capital                         187             187
Share premium account                           5,691           5,691
Capital redemption reserve                      9               9
Profit and loss account                         (1,044)         (837)
Shareholders' funds                                             
Equity                                          4,843           5,050
                                                                


Group Cash Flow Statement
for the year ended 31 March 2000

                                              2000             1999
                                              #000             #000
                                                               
NET CASH INFLOW FROM OPERATING ACTIVITIES     1,556            1,556
                                                               
RETURNS ON INVESTMENTS AND SERVICING OF                        
FINANCE
Interest paid                                 (132)            (135)
Interest received                             5                5
                                                               
Net Cash outflow from returns on investments                   
and servicing of finance                      (127)            (130)
TAXATION                                                       
Corporation tax paid (including ACT)          -                (240)
CAPITAL EXPENDITURE                                            
Purchase of tangible fixed assets             (994)            (1,228)
Net cash outflow from capital expenditure     (994)            (1,228)
EQUITY DIVIDENDS PAID                         -                (280)
                                                               
FINANCING                                                      
Repayments of capital element of finance                       
lease rentals and hire purchase contract      (45)             (26)
payments
Net cash outflow from financing               (45)             (26)
INCREASE/(DECREASE) IN CASH                   390              (348)
                                                               


Notes for the year ended 31 March 2000

1.   Taxation

                                             2000              1999
The taxation charge is made up as            #000              #000
follows:
                                                               
Corporation tax                              300               (160)
Deferred taxation                            (69)               9
                                                               
                                             231                151
  

The  effective  tax rate for the current year is higher than standard  as  a  
result of depreciation on tax ineligible fixed assets for which there is  no  
tax relief.                                                                   

2.   Loss per Ordinary share

Basic and Diluted                                 2000           1999
The calculation of earnings per ordinary share    #000           #000
is based
upon the following:                                              
                                                                 
Loss for the year before ordinary dividends       (207)          (804)
                                                                 
Weighted average number of shares (shares 000's)  18,667         18,667
                                                                 
Loss per share                                    (1.11p)       (4.30p)
                                                                 


  
3.   Dividends
  
No  interim  dividend was paid and the Directors are  not  recommending  a
final dividend.

4.   Exceptional items

Premiums  received  for lease disposals and a provision  relating  to  the
diminution  in  value  of  fixed assets have been treated  as  exceptional
profits and costs before arriving at operating profit.
  
                                                  2000           1999
                                                  #000           #000
                                                                 
Provision for diminution in value of fixed        476            -
assets
Premiums received for lease disposals             (492)          -
Restructuring of product range                    -              104
Store concept development and board               -              302
restructuring costs
                                                                 
                                                  (16)           406
  

The  provision for diminution arises from the write down of fixed assets  at
under-performing stores.


5.    Reconciliation of operating profit / (loss) to net  cash  inflow  from
      operating activities:

                                                  2000           1999
                                                  #000           #000
                                                                 
Operating profit / (loss)                         151            (825)
Depreciation                                      2,001          1,537
Amortisation of deferred income                   (540)          (469)
Loss on disposal of tangible fixed assets         114            -
Increase in debtors                               (88)           (114)
Increase in stocks                                (901)          (1,025)
Increase in creditors                             819            2,452
                                                                 
Net cash inflow from continuing operating         1,556          1,556
activities



6.   NOTES TO THE CASH FLOW STATEMENT

Reconciliation of net cash flow to movement in net debt
  
                                                  2000           1999
                                                  #000           #000
                                                                 
Increase / (decrease) in cash in the year to 31   390            (348)
March
New finance leases                                (66)           -
Cash used to repay finance leases                 45             26
                                                                 
Change in net debt                                369            (322)
Net debt at 1 April                               (2,092)        (1,770)
                                                                 
Net Debt at 31 March                              (1,723)        (2,092)
  

Analysis of changes in net debt

                                  At 1 April      Cash flows     At 31
                                  1999                           March 2000
                                  #000            #000           #000
                                                                 
Cash in hand                      58              -              58
Overdrafts                        (2,123)         390            (1,733)
                                  (2,065)         390            (1,675)
Debt due within one year          (27)            (21)           (48)
                                                                 
Total                             (2,092)         369            (1,723)




7.   Accounting Policies

The accounts have been prepared using accounting policies stated  in  the
Company's statutory accounts for the year ended 31 March 1999.

8.   Annual Report 2000

The  financial information set out above does not constitute full accounts
within the meaning of Section 240 of the Companies Act 1985 for the  years
ended  31  March 2000 or 31 March 1999. Statutory accounts for  1999  have
been  delivered  to the Registrar of Companies: those  for  2000  will  be
delivered  following  the Company's Annual General Meeting.  The  auditors
have  reported on these accounts: their reports were unqualified  and  did
not  contain  statements under Section 237(2) or (3) of the Companies  Act
1985.
  
The  annual  report  for the year ended 31 March 2000 will  be  posted  to
shareholders  on 26 June 2000 prior to the Annual General Meeting.  Copies
of  the  annual report will be available to members of the public from  29
June  2000 from the Company Secretary, Partners Holdings plc, Savoy House,
Savoy Road, Cheshire CW1 6NA.
  

END
FR FIMRTMMTBBLM


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