Legends surf shops

RNS Number:4762F
Legendary Investments PLC
23 December 2002


For Immediate Release
23 December 2002



LEGENDARY INVESTMENTS PLC

("Legendary" or the "Company")

Interim results for the six months ended 30 September 2002



The Company today announces its interim results for the six months ended 30
September 2002. The main points are:

The Company has remained firmly focused on the core investment strategy of
retail and branded products. Its principal investments include:

Legends Surf Shop plc (specialist boardwear retailer)

* Another six months of excellent progress

* Profit before taxation of #373,587 in the six months to 31 July 2002

* Three new locations trading by Christmas

The Accessory People plc (branded mobile phone accessories)

* Anticipate another year of excellent growth

* Opportunities to take market share

Moss Bros Group plc (menswear)

* Like-for-like sales during the first 11 weeks increased 7 per cent.

* Well prepared for important Christmas period

BioProjects International plc (investment company specialising in biotech
sector)

* Successful debut on AIM raising #4.1 million net in May 2002

BioProgress Technology International, Inc.

* Performance milestones successfully achieved across all existing contracts

Commenting on the results, Shami Ahmed, Chief Executive, said: "We shall
continue to execute our clearly defined strategy of seeking exposure to niche
markets that exhibit strong growth, such as surf boardwear and branded telecom
accessories. We believe that the current economic down-cycle may bottom out
during the latter parts of 2003 and that the upswing when it comes will lead to
considerable enhanced value to shareholders."

For further information:-

Shami Ahmed, Legendary Investments plc Tel: 020 8903 9037





LEGENDARY INVESTMENTS PLC

Interim results for the six months ended 30 September 2002

Chief Executive's Statement

Portfolio Development Strategy and Update

The six-month period ended 30 September 2002 has seen relentless market
volatility. Negative sentiment continues to drive investment patterns and the
predominant theme has been risk aversion that has inevitably driven down
valuations. As with previous periods, we continue to value our portfolio
prudently. In line with our existing policies, we mark to market the carrying
value of quoted investments; likewise, we regularly review valuations attributed
to unquoted ones.

The decline in opening shareholders' funds was largely due to falls in the share
price of Moss Bros Group plc and BioProgress Technology International, Inc. and
a write down to the profit and loss account by #0.2 million. of our non-core
unquoted interest in Global Money Transfer Holdings Limited, as this company
went into administration on 20 September 2002. Since the period end, there has
been a significant recovery in the value of the Company's Moss Bros Group plc
holding.

In the first half of the year, we remained focused on the strategy that has been
the bedrock of our activity for some time. We have continued to review our
portfolio, where the heaviest focus is on retail investments and branded
products and, in particular, we remain committed to strengthening our position
in the extreme sportswear market where we see attractive industry prospects.

The volatility and values associated with companies in the equity markets
discourage fundraising and, as a consequence, the timing of disposals has
lengthened significantly. We believe 2003 will see our investments continuing to
mature. Even if the IPO window remains closed, the Board believes that our
investee companies have sufficient funds to take products to market, reducing
their need to have recourse to the public equity markets in the short term.

The portfolio is prudently valued and we are encouraged to see that many of our
investments continue to make good commercial progress.

Retail Portfolio

Our retail development strategy has been and continues to be based on our key
premise of delivering value to investee companies by taking advantage of the
considerable skills and experience of the Board in the three key areas of brand
development, distribution and sourcing.

Our first success in executing this strategy has been Legends Surf Shops plc
("Legends"), a leading specialist retailer of fashionable extreme sports branded
and leisure wear. The Legends management continues to do an outstanding job in
pathfinding this exciting new retail niche.

We continue to look for new investments in this niche sector and opportunities
continue to arise and encourage us. During the period we reviewed two
interesting unquoted businesses with a view to bringing one or both into the
"fold". Exploratory talks continue. To take advantage of the depressed market
valuations for these new investments, as a first phase of this endeavour, the
Company has entered into an agreement for the provision of a credit facility
from myself, for a maximum amount of #500,000, and which the Company may draw
down at any time. I am entitled to receive interest on the amount of the credit
facility drawn down at a rate of 2% above base rate of the National Westminster
Bank plc with interest payable quarterly in arrears. The facility is capable of
being repaid at any time with 21 days' notice provided the Company has
sufficient working capital and otherwise in full by no later than 1 August 2003.
The independent director of Legendary, Smit Berry, having consulted with the
Company's nominated adviser, believes that the terms of the facility are fair
and reasonable insofar as the shareholders of Legendary are concerned.

Legends Surf Shops plc

After an excellent trading performance last year that seemed difficult to match,
Legends has continued to deliver the goods in the first six months ended 31 July
2002. Profit before taxation was #373,587 in the six months to 31 July, on sales
of #7.4 million. Whilst the business is very much driven by second half
profitability, this result underlines the continued progress being made and
offers much for the full year.

The number of stores open at Christmas will be 23 and will include the
significant new stores at Southampton, Cardiff and Birmingham. This compares to
14 stores and a pre-tax profit of #401,000 for the full year to 31 January 1999,
which was the year prior to our active involvement.

Critically, this progress has been kept on track with a particular emphasis on
investment in infrastructure that is being phased in to support the bigger store
count. The newer openings which are in the larger format are trading well ahead
of the smaller older format stores. A further three stores are planned for next
year including a new store opening in Leeds and significant resites in Brighton
and Leamington Spa.

Legends' good performance in the first half of the year once again confirms our
belief in the strength of the high quality Legends brand and its capacity for
expansion. The second half should continue to reflect the contribution for the
whole period from some of the larger stores opened during the first half.
Competitive forces remain strong but Legends are confident of maintaining
year-on-year growth.

Legendary has been assisting with the development of Legends' own brand
offerings in sports and leisure wear targeting young fashion consumers under the
"Siesta" and "Paranoid" brands. This programme is making good progress and will
help drive the creation of long term value in the business. To date, these
ranges have been successfully received in the stores and this pilot is providing
the opportunity to understand and refine the brand.