RNS No 7391x
PARTNERS HOLDINGS PLC
14 June 1999

                    Partners Holdings plc
                         'Partners'
                              
    Preliminary Results for the year ended 31 March 1999


Partners Holdings plc, the operator of 105 specialist retail
stationery  stores, today announces preliminary results  for
the year ended 31 March 1999.

*    Sales  for  the year of #38.9million, up  9.1%  (1998:
     #35.6m).

*    Loss before tax and exceptional item of #549,000 (1998:
     Profit #755,000)

*    Exceptional item of #406,000

*    New trading concept showing better returns

*    New Board structure in place.

*    Year on Year sales for the current year to the end of
     May increased by 12%


Michael Scorey, Chairman, said:

'We  have made progress during the year in putting in  place
the  management team and marketing strategies to  regenerate
growth, and the current year has started satisfactorily.  We
will  continue to work this year to complete the foundations
for  future  growth and will roll out our new store  concept
progressively.'

Enquiries:

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


College Hill                   Tel: 0171 457 2020
Matthew Smallwood


                    Partners Holdings plc
                    Chairman's Statement


Results

As  indicated  at  the  time of our  interim  and  Christmas
trading   statements   our  results   for   the   year   are
disappointing being significantly influenced by  weak  sales
throughout  our  first  half  year  and  over  the   crucial
Christmas trading period.

Nevertheless  progress has been achieved  in  re-positioning
the  business for future growth. Over the past year we  have
considerably  strengthened  our  management  team,  we  have
implemented  new  marketing  strategies  and  we  have   re-
engineered our store concept.

Turnover at #38.9m increased by 9.1%. Pre tax losses  before
exceptional  items were #549,000 compared  with  profits  of
#755,000 last year.

After  exceptional costs of #406,000 incurred in  connection
with  the  initiatives  noted  above  pre  tax  losses  were
#955,000 giving a loss per share of 4.3 pence.


Dividends

An  interim dividend of 0.5p per share was declared  by  the
Board  at the half year.  The Board has carefully considered
the  payment of a final dividend.  However, in the light  of
our  results,  it has been decided that on this  occasion  a
final dividend would not be appropriate.


Board

I  am  delighted to welcome Mike Kilcourse to our  Board  as
Marketing Director.  Phillip Birt resigned from the Board in
January  1999 and I would like to express my thanks  to  him
for his contribution to the business over many years.


Current Developments

Renewed  sales  growth in our core stores is a pre-requisite
for   future  financial  success.  The  key  focus  of   our
management  team is to achieve this principally through  the
restructuring  of our product range to meet  more  precisely
the  needs  of  our customers and to reflect our  specialist
position  in the market and through the development  of  our
new store concept.

Progress  has  already  been made following  detailed  range
reviews  and this is evidenced by the progress we have  made
with  our Computer consumables range which now represents  a
significant element of our product mix.  We have  also  seen
encouraging initial results from the four stores refurbished
into our new concept format.  A  cost effective  version  of
this concept is now being rolled out across the chain.

Outlook

The  current  year has started satisfactorily  with  overall
sales  increasing by 12% to the end of May albeit  at  lower
than planned margins.

We   expect   that  this  will  be  a  year   of   continued
restructuring as we lay the foundations for future growth.


Michael Scorey
Chairman


                    Partners Holdings plc
                  Chief Executive's Review

Results

The  year  ended  March 1999 has been one  of  great  change
within the business and it is disappointing to report a  pre
tax loss, before exceptional items, of #549,000.

Sales  for  the year at #38.9m increased by 9.1%.   Pre  tax
losses  for  the year after exceptional items were  #955,000
and Group net assets were #5.1m.

The  costs of reorganising our Board and the various reviews
of  our image and marketing strategies have been charged  as
exceptional  items during the year and amount  to  #406,000.
Pre  tax  losses  before  exceptional  items  were  #549,000
compared with a profit last year of #755,000.

Our  second  half  trading performance  showed  an  improved
position   on  that  reported  in  our  Interim   statement.
Operating profits in the second half were #673,000  compared
with #814,000 last year.


Finance

Net  cash  inflow  from  operating  activities  was  #1.556m
compared with #283,000 last year. Of this amount #1.313m has
been  generated  by  improved  utilisation  of  our  working
capital  with a net stock investment at the end of the  year
of  #1.2m compared with #2.2m last year. Net borrowings were
#2.1m well within the facilities available to us.

Capital   investment  for  the  year  was   #1.2m   incurred
principally  in the acquisition of five new stores  and  the
refurbishment of four stores into the new store concept.

The  Group  principally finances itself through an overdraft
facility  that  is  secured by a floating  charge  over  all
assets. A small element of the Group's products are imported
and in order to avoid any commercial risks, foreign currency
dealings  are  dealt  with using forward currency  contracts
which are fixed at the point of product order.


Board Changes

As previously reported Alan Goodwin and Mark Tompkins joined
the  Board in April last year.  I am also pleased to welcome
Mike  Kilcourse  to  our  team as Marketing  Director.  Mike
joined  us in November last year and brings extensive retail
marketing expertise gained with Dixons plc. and Boots plc.

At  subsidiary board level Karen Griffiths resigned from her
position  as  Personnel Director with  her  responsibilities
being  taken  up by Bruce Pearson, Operations  Director.   I
would   like  to  express  my  thanks  to  Karen   for   her
contribution to the business over many years.



Operations

During  the year we opened 5 new stores and closed 3  under-
performing  stores to leave 105 stores trading at  the  year
end.  In addition 4 stores were fully refitted into our  new
trading  concept  and  4 stores refitted  to  a  lower  cost
version  which offers us better returns on capital  invested
without compromising the main objectives of the refits.

Like  for  like sales increased by 4.6% over the  year  with
improved  performances being shown during  the  second  half
year  largely  as  a  result of the  aggressive  promotional
activity being undertaken during this period.

The  action  taken  last  year to  improve  our  recruitment
processes  and  retain  our existing management  has  proved
successful  and this has enabled us to stabilise  our  store
management team.


Marketing

Following the market research undertaken earlier in the year
the last six months have seen a period of radical change  as
the  business  has repositioned itself in the  market.   The
research  has  allowed us to better understand our  customer
base and their requirements.  As a consequence we have begun
to  restructure our product ranges to reflect the market and
market  trends  much  more rapidly than previously  was  the
case.   This   new  focus  has  delivered  some  encouraging
performances in our core product ranges.  Of particular note
has  been our success in sales of computer consumables which
after  being introduced in mid 1998 have grown to  become  a
useful element of our product mix.

At  the  same  time  we  have  worked  with  leading  design
consultants to develop a new retail store concept from which
to  market  the business.  The first four stores were  fully
converted  by  November  of last year  and  the  performance
achieved  gave us the confidence to begin a roll out,  of  a
lower  cost version of the format throughout the  chain.  In
addition to the four stores initially converted a further  8
have  been refitted by the end of May and we aim to  upgrade
virtually the whole chain over the next two years.

We  will  continue  to  aggressively promote  the  business,
increasing  our focus on category leading stationery  ranges
and  developing our merchandising techniques and  our  gross
margins.   To achieve this we have been active in developing
our  team  both internally and through high quality external
recruitment.


Supply Chain

Following  a  review  of our supply chain  we  have  changed
responsibilities   and   strengthened   our   supply   chain
management  team.   The  team are now  actively  engaged  in
reducing overall inventory levels whilst improving supply of
products  to our stores. Utilising the information generated
by our EPOS systems we have implemented automatic allocation
of  stock  from the warehouse to all stores and  across  all
core product lines.


In  logistics  we  have seen the benefits  from  our  recent
investment  in the new distribution centre and we anticipate
further  efficiency improvements and greater  stock  picking
accuracy  as  a  result  of  the impending  introduction  of
advanced  warehousing IT systems including the use of  radio
frequency terminals.

Within  our  warehouse excess capacity has been  sublet  for
external  use  and the income generated contributes  towards
our  overhead  costs.  These sublets are  of  a  short  term
nature  and  allow  us  to  increase  the  amount  of  space
available for our own future requirements at short notice.


People

I  would  like  to  once again acknowledge  the  exceptional
efforts of all our management and staff for their hard  work
and  commitment  during a year of great  change  within  the
business.


Outlook

We  now have in place both the management team and marketing
strategies to regenerate growth in our core stores and there
is  evidence of progress.  The current year has started well
with,  at the end of May, a satisfactory 12% growth in sales
being  achieved,  although at lower  margins  than  planned.
However, much remains to be done, and the current year  will
be a year of further transition as we seek to create a solid
platform for future growth.

Peter Davey
Chief Executive

                    Partners Holdings plc
                Group Profit And Loss Account
              for the year ended 31 March 1999


                                   Before                                 
                                   Excep-     Excep-    Totals       Totals
                                    tional    tional      1999         1998
                            Notes    Items     Items     #'000        #'000
                                     1999       1999
                                    #'000      #'000
                                              Note 4
                                                                   
Turnover                          38,880                 38,880       35,641  
                                                       
Cost of sales                    (36,194)     (104)     (36,298)     (32,352) 
  
Gross Profit                       2,686      (104)       2,582        3,289  
                 
Distribution costs                 (479)                  (479)         (369)
                                                     
Administration expenses          (2,664)      (302)     (2,966)       (2,232)
                                                        
                                   (457)      (406)       (863)          688
                                                        
Other net operating income           38        -            38            40
                                                      
Operating (Loss) / Profit          (419)      (406)       (825)          728
                                                        
Interest receivable                 5          -             5            49

Interest payable                   (135)       -          (135)          (22)
                                                        
(Loss) / Profit On                                                 
Ordinary Activities                                     
Before Taxation                    (549)      (406)       (955)          755  
Tax on (loss)/profit on     
ordinary activities           1.     87         64         151          (286) 
                       
(Loss) / Profit For The                                       
Financial Year                     (462)      (342)       (804)          469
                                                                   
Dividends on equity shares                                 (93)         (280)
                                                        
Retained (Loss) / Profit                                         
For The Year                                              (897)          189
(Loss) / Earnings per                                          
share - basic and diluted     2.                         (4.30p)        2.55p

There  are  no  recognised gains or losses  other  than  the
results for each year shown above.


                  Partners Holdings plc
                   Group Balance Sheet
                   as at 31 March 1999


                                          1999       1998
                                         #'000      #'000
Fixed Assets                                             
Tangible assets                          6,848      7,157
Current Assets                                           
Stock                                    5,788      4,763
Debtors                                  2,170      1,958
Cash at bank and in hand                    58         57
                                         8,016      6,778
Creditors:  amounts falling due within (9,119)    (6,895)
one year
Net Current Liabilities                (1,103)      (117)
                                                         
Total Assets Less Current Liabilities    5,745      7,040
                                                         
Provisions For Liabilities And Charges                   
Deferred Taxation                        (179)      (253)
Accruals And Deferred Income                             
Deferred income                          (516)      (840)
                                         (695)    (1,093)
                                                         
                                         5,050      5,947
                                                         
                                                         
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                  (837)         60
                                                         
Shareholders' funds                                      
Equity                                   5,050      5,947
                                                  
                                                         
                            
                  Partners Holdings plc
                Group Cash Flow Statement
            for the year ended 31 March 1999

                                                             
                                              1999    1998
                                             #'000   #'000
                                                     
Net Cash Inflow From Operating Activities    1,556     283
Returns On Investments And Servicing                 
Of Finance
                                                     
Interest paid                                        
                                             (135)     (22)
Interest received                               5       49
                                                     
Net Cash (Outflow) / Inflow From Returns             
On Investments and Servicing Of Finance      (130)      27
Taxation                                             
Corporation tax paid (including ACT)         (240)    (574)
Capital Expenditure And Financial                    
Investments
Purchase of tangible fixed assets          (1,228)  (4,505)
Sale of tangible fixed assets                 -        882
Net Cash Outflow From Investing            (1,228)  (3,623)
Activities
Equity Dividends Paid                        (280)     (93)
                                                     
Financing                                            
Issue of Ordinary Shares                      -       5,500
Share issue costs                             -        (521)
Deferred ordinary share issue costs           -         (35)
Redemption of Deferred Ordinary shares        -      (1,967)
Repayments of capital element of  finance            
lease rentalsand hire purchase 
contract payments                             (26)      (39)                  
Repayment of loans                            -        (320)
Net Cash (Outflow)/Inflow From Financing      (26)    2,618
Decrease In Cash                             (348)   (1,362)
                                                             
Notes for the year ended 31 March 1999

1. Taxation                          1999    1998
                                    #'000   #'000
Based on the result for the                   
year:
UK corporation tax                 (160)      210
Deferred tax                          9       114
                                              
                                   (151)      324
Adjustments relating to                       
prior years:
Corporation tax over                  -       (38)
provided in earlier periods
                                   (151)      286


2.  Earnings per share               1999     1998
                                    #'000    #'000
The  calculation of  earnings                 
per  ordinary share is  based
upon the following:
                                              
(Loss) / Profit for the  year      
before ordinary dividends           (549)      469
                                              
Weighted  average  number  of                 
shares adjusted for the bonus     
issue of shares in April 1997
(shares 000's)                    18,667    18,385
                                              
(Loss) / Earnings per share -    
basic and diluted                 (4.30p)     2.55p              
                                              
  

3.   Dividends
  
  An interim dividend of 0.5p per ordinary share was paid
  on   31st   December  1998.   The  Directors  are   not
  recommending a final dividend. Total dividends for  the
  year are 0.5p.

4.   Exceptional items

  Costs relating to the restructuring of the business
  have been treated as exceptional costs before arriving
  at operating profit.


                                      1999    1998
                                                  
                                     #'000   #'000
                                                  
Restructuring of product range         104       -
                                                  
Store  concept  development  and       302       -
board restructuring costs                         

                                       406       -
                                                  


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

                                      1999    1998
                                     #'000   #'000
                                            
Operating (loss) / profit            (825)     728
Depreciation                         1,537   1,284
Amortisation of deferred income       (469)     31
Profit on disposal of tangible           
fixed assets                            -      (4)
Increase in debtors                  (114)   (450)
Increase in stocks                 (1,025) (1,193)                            
Increase/(decrease)in creditors     2,452    (113)

                                                  
Net cash inflow from continuing      
operating activities                1,556     283


6.   NOTES TO THE CASH FLOW STATEMENT

  Reconciliation of net cash flow to movement in net debt
  
                                      1999    1998
                                     #'000   #'000
                                            
Decrease  in cash in the  year       
to 31 March                           (348) (1,362)         
New finance leases                       -     (65)
Cash  used  to  repay  finance          
leases                                  26      39
Cash used to repay loans                 -     320
                                                  
Change in net debt                                
Net debt at 1 April                  (322)  (1,068)
                                   (1,770)    (702)
                                    
                                                  
Net Debt at 31 March               (2,092)  (1,770)
                                   
                                                  

Analysis of changes in net debt

                  At 1 April            Cash       At 31 March
                        1998           flows              1999
                      
                       #'000           #'000             #'000
Cash in hand              57               1                58
Overdrafts           (1,774)            (349)           (2,123)
                     (1,774)            (348)           (2,065)
Debt  due  within      
one year                (53)              26               (27)
                                                              
Total                (1,770)           (322)            (2,092)



7.   Changes in Accounting Policy

  The  Group  has adopted FRS10 'Goodwill and  Intangible
  Assets',   FRS11  'Impairment  of  Fixed   Assets   and
  Goodwill', FRS12 'Provisions and Contingencies',  FRS13
  'Derivatives and Other Financial Instruments'  and  FRS
  14 'Earnings per Share'. Consistent accounting policies
  have been applied with the exception of FRS10.
  
  In  order  to  adopt FRS 10 the Group has  changed  its
  accounting  policy  for  its  treatment  of   Goodwill.
  Goodwill  written  off to reserves  under  the  Group's
  previous policy, has been eliminated against the profit
  and loss account as a prior year adjustment.  There  is
  no  effect  on the Group's reported results  from  this
  change in accounting policy on the results for 1998 and
  1999.  For  acquisitions made on or after 1 April  1998
  goodwill  is  capitalised as an intangible fixed  asset
  and  amortised through the profit and loss account over
  its useful economic life to a maximum of 20 years.

8.   Annual Report 1999

  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  1999  or 31 March 1998. Statutory  accounts  for
  1998 have been delivered to the Registrar of Companies:
  those   for  1999  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 1999 will
  be  posted to shareholders on 24 June 1999 prior to the
  Annual  General  Meeting. Copies of the  annual  report
  will be available to members of the public from 25 June
  1999 from the Company Secretary, Partners Holdings plc,
  Savoy House, Savoy Road, Cheshire CW1 6NA.
  
END

FR FBMPBLLMBBJL


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