Analyst Presentations

Significantly improved performance following cost saving measures and restructuring. Operating profit on continuing operations of £0.1m compared to a loss of £5.6m a year ago.
Umbrella Frames operation sold for £1.05m cash plus £0.35m deferred.
Banking restructured and net borrowings reduced by £1.6m to £11.1m helped by strong working capital measures being implemented.
Transfer to AIM completed.

Board composition changed in March. Full strategic and operational review and implementation.
New financing facilities in place bringing increased headroom and flexibility.
Penistone and Umbrella Frames business sold for £10.05m (£8.15m net) cash plus £0.35m deferred.
Cost base cut, in particular central costs reduced, and slimlined senior management structure.
Savings in excess of £3m made, in part to improve profitability, in part to offset projected cost increases.
Group position is improving but factors such as raw material prices, which are outside our control, continue to have an impact.

The Board remains committed to completing structural change in the composition of the Group. The aim is to achieve a smaller, more financially robust Group focussed on the global Fibres businesses.
Relocation of Umbrella Frames business underway and anticipated to be complete by March 2007, realising gross proceeds of £9.0m (approximately £7.3m net of move costs) from the sale of Penistone site in this financial year.
Trading conditions are very difficult and are expected to remain so in the second half.
Debt levels have increased by £2.8m to £18.0m since the year end. As a result of this and the operating loss no interim dividend will be paid and, given the weakness in our trading, it is unlikely that a full year dividend will be proposed.

Asset realisations in year have helped reduce bank debt to £15.2m.
Planning permission obtained at Penistone for 4.99 hectares (value £9m). S.106 agreement signed with local authority. Monies will be received following relocation of the Hoyland Fox business.
New advisers appointed to assist in implementing a strategy of maximising returns for shareholders over the next 12-18 months.
Trading conditions remain challenging but free cash flow supports declaration of 0.77 pence final dividend.

Planning application for 14 acres at Penistone submitted, response expected in first quarter of 2006; initial feedback from local authority and Development Agency supportive.
Exceptional cash costs have driven debt £1.4m higher from March 2005 level but improved second half performance and property sales to deliver reduction for full year. Target borrowings of below £18m by year end.
Weak first quarter trading depressed overall results for the half year, but was partially offset by stronger second quarter. Current trading conditions challenging but strong final quarter anticipated as in prior years. Full year out turn will be materially below our previous expectations.
Actions being taken to ensure resources are aligned with performance.
Interim dividend of 0.33p maintained.

The Group met its key objective of reducing borrowings to below £20m at March 2005 despite weakening trading performance.
Rising raw material costs, weak Northern American and Western European wallcoverings markets and poor selling season in Umbrella Frames have all contributed to lower profits.
We remain committed to our progressive dividend policy with a full year dividend of 1.1p, up 10%, supported by our robust operating cash flows.
Reshaping of the Group continues. Umbrella Frame property sale progressing.

Performance impacted by depressed North American wallcoverings market and rising raw material prices.
Despite challenging conditions borrowings down and on track to meet target of £20m by March 2005.
Interim dividend of 0.33p up 10%.
Reshaping of the Group underway.

Targets met of reducing borrowings and maintaining financial performance.
Borrowings down and on track to meet target of £20m by March 2005.
Satisfactory trading results despite weak US Dollar, depressed North American wallcoverings market and rising raw material prices.
Full year dividend of 1.0p up 33% covered 1.8 times.
Good platform to build on for the future.

Chapelthorpe has achieved major improvements in operating profits, cash generation and operating efficiency.
Our financial risk reduced with borrowings and gearing well down on 2002 levels.
Target borrowings below £20m by end of 2005.
Doubled final dividend of 0.5p, making 0.75p in total.
Our ability to continue to generate cash can reduce our financial risk further and provide a progressive dividend return.