Final Results

7 July 2011

Theo Fennell PLC

("Theo Fennell" or "the Company")

Final unaudited results for the year ended 31 March 2011

Theo Fennell plc, the luxury jewellery brand, announces results in line with expectations for the year ended 31 March 2011 and a strong start to the new financial year with the company on track for a return to profitability.

HIGHLIGHTS

Financial & Operational

·; Turnover broadly flat at £12.5 million (2010: £12.6 million) following strong first half with sales up 12.5% and disappointing Christmas trading due to the extreme snow

·; Loss on ordinary activities before taxation £0.55 million in line with expectations (2010: £0.35 million)

·; Secured £1.5m fundraising in April 2010

·; Successful launch of new website in October 2010

·; New International openings with partners in Ukraine, South of France and Australia

o New concession in Heathrow Terminal 3 in April 2011

Product & Design

·; Alias, the new silver jewellery range, has performed strongly to date

o Product range being expanded and launched with new partners this year

o Alias will be launched in 30 new outlets this year

·; Launched new collections, including 'Bee' and 'Spangle', during the year - now amongst the Company's best ever selling collections

·; Invested in unique one off pieces, priced from £20k to £200k, which have been well received and were last week launched at "Masterpiece" in London

·; New innovative collections being launched in Autumn and Christmas 2011

Outlook & Strategy

·; Strong start to year with like for like retail sales 15% ahead in the first 12 weeks of the current financial year versus the same period last year

·; Focus on International growth, currently in discussions with potential partners in the US and China

·; Targeting wholesale and online as primary channels to grow sales further

·; Exhibiting at the Luxury Prive trade show in New York from 24 -26th July

Rupert Hambro, Chairman of Theo Fennell, commented:

"We have made significant progress over the year having raised new finance, opened with new international partners, launched a new website, and expanded our product range. Whilst this year's sales were impacted by the adverse weather in the lead up to Christmas, current trading has been encouraging.

We feel the business is now well positioned for future growth and are confident that the company is on track to deliver profit this year."

Theo Fennell, Interim MD & Founder of Theo Fennell commented:

"We now have a strategy in place to increase sales and grow the business. Our focus is on the International expansion of the brand, in the US and China in particular, on increasing our wholesale distribution, developing our online sales and continuing to create new and innovative product ranges and collections."

Enquiries:

Chairman's Statement

The Company has made significant progress in this financial year. The fund raising completed at the start of the financial year has allowed the Company to invest in the development of new product, refurbishment of our stores and the launch of a new website. Our strategy remains the same, to build on the unique strengths of the business and its design led ethos. We intend to grow the core jewellery business while developing our product offer and growing our International distribution.FinancialFor the year ended 31 March 2011 the Company achieved sales of £12.5m, in line with the prior year, and made a loss on ordinary activities before taxation and exceptional items of £0.55m. Sales for the first half of the year were up 12.5% versus the previous year however the Company experienced a difficult Christmas trading period due to the adverse weather conditions encountered across the UK at that time. This resulted in significantly lower customer footfall to stores during a key trading period, particularly from high end UK and International clients. Current trading is however encouraging with retail sales up 15% in the first three months of the financial year to 31 March 2012 against the same period last year.

Design, Product and Operations We have continued to develop new collections and unique one off pieces. The Bee collection was launched in June 2010, followed by the launch of Spangle, a range of pave diamond rings, earrings and bracelets, and both are now amongst our best selling collections. We have also developed a range of limited edition pieces such as the secret garden key and cross. In addition the Company has invested significantly in unique one off pieces for our stores and to provide highlight pieces for our wholesale partners. We continue to explore new ways of communicating and showing our unique one off product to a wider range of customer. We have just exhibited at the Masterpiece event in London which attracts a diverse range of International clients.

Alias, the new, high quality, silver diffusion jewellery line was soft launched in November. We have been very encouraged by the initial sales of Alias and response from our existing and potential wholesale partners. The product range has already been expanded with the launch of Carnival and friendship bracelets in June. We believe that it will reach a new and extensive customer base.

We continue to develop our website as our online presence becomes an increasingly important part of the business. International & WholesaleWe continue to target wholesale as an important channel through which the Company will be able to expand its sales significantly both in the UK and Internationally. Although we are already well represented across the UK, our UK distribution will expand significantly in the coming year as we launch Alias with new partners and exploit its appeal to a broader profile of customer.

During the year, we opened with new partners internationally in the Ukraine, South of France and Australia and in the first month of the current year we have opened a wholesale concession in Heathrow Terminal 3. We are now focusing our expansion on important and high growth markets which include the US, China and other areas in the Far East and continue to have positive discussions with potential partners in these markets. We believe that Theo Fennell's unique design led jewellery has a distinct position in the International market place that will enable the business to significantly increase our wholesale sales and distribution over the coming years. Senior ManagementBarbara Snoad, CEO of Theo Fennell, left the Company on 3 June 2011 following a two year period at the Company during which Barbara worked closely with Theo Fennell and the Board to successfully refocus and turnaround the business during a challenging period. Theo has taken over as interim MD while the Board looks to restructure and strengthen the management of the Company.OutlookThe Company has made significant progress this year having taken some important steps, which include raising new finance, the launching of Alias and work on the new website. The business is now in a stronger position with significant future potential. The improvement in our sales gives us confidence that we are on track for profitability this year. 

Rupert HambroChairman

Unaudited Summarised Profit and Loss AccountFor the year ended 31 March 2011

Unaudited Summarised Balance Sheetas at 31 March 2011Company Number 1955534

Unaudited Summarised Cash Flow StatementFor the year ended 31 March 2011

1. Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards. The principal accounting policies which are set out below have remained unchanged from the previous year. These policies have been applied consistently in dealing with items in relation to the Company's financial statements and have been reviewed in accordance with Financial Reporting Standard 18 "Accounting Policies".

Going concern

The current economic conditions continue to create uncertainty over the level of demand for the Company's products and the Board have therefore undertaken extensive detailed forecasting of the Company's activities, including sensitivity analysis, through to September 2012.

Cash flow projections are based on conservative assumptions and continued overdraft and loan facilities of £3m. A new agreement is currently being negotiated with Clydesdale Bank plc regarding overdraft and loan facilities which are due for renewal on 31 July 2011. The directors have concluded that the combination of these circumstances represent a material uncertainty that casts significant doubt upon the Company's ability to continue as a going concern. Should these negotiations be successful, the Board do not envisage a shortfall in working capital during the coming twelve months. The Board are encouraged that after initial discussions with the bank no matters have been brought to their attention to suggest that renewal may not be agreed on satisfactory terms.

Accordingly, based on the Company's plans for 2011/12 and after making enquiries, the Directors have a reasonable expectation that the Company has adequate resources available from funds generated from trading and from banking facilities to continue operations for at least 12 months from the date of signing of these financial statements.

The directors are therefore satisfied that the Company has adequate resources to continue in business for the foreseeable future. Accordingly, the financial statements of the Company have been prepared on a going concern basis.

2. Tax on loss on ordinary activities

The taxation charge is based on the loss for the year and represents:

3. Loss per share

Loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares during the year. Share options are generally dilutive if the exercise price was below the average market price for the year end 31 March 2011 of 40.5p.

On 22 June 2010 the Company acquired a 20% interest in the Original Design Partnership Limited, incorporated in the United Kingdom, a company founded by A T Fennell in May 2008 to provide design services and nurture new design talent in jewellery and other areas. The Company has acquired 9% of the existing issued share capital for cash consideration of £72,000 and have invested a further £110,000 of new equity in The Original Design Partnership to give the Company a 20% interest in the enlarged issued share capital of The Original Design Partnership. The new money will be used by The Original Design Partnership for capital expenditure and working capital requirements.

For the 10 months ended 31 March 2010 the Original Design Partnership made a profit before tax of £14,681 and the total capital and reserves was £94,674.

This is treated as a fixed asset investment as the Company does not exert significant influence over The Original Design Partnership. The Company is not involved in the strategic, operational and financial decision making of The Original Design Partnership and the Company does not have independent Board representation.

The Company held £2,383,242 of stock on consignment as at 31 March 2011 (2010: £2,586,774) which is not recorded on the balance sheet. The principal terms of the consignment agreements, which can generally be terminated by either side, are such that the Company can return any or all of the stock to the relevant suppliers without financial and commercial penalties and the supplier can vary stock prices.

6. Debtors

The bank loans are secured by a debenture over the assets and undertakings of the Company.

8. Share capital

On 1 April 2010 the Company raised £1,500,000 (gross) through a placing of 3,947,368 new ordinary shares of 5p at a price of 38p each with new and existing shareholders.

9. Reserves

10. Publication of Non-Statutory Accounts

The financial information set out in this preliminary announcement does not constitute the company's statutory accounts as defined in Section 435 of the Companies Act 2006 in respect of 2011 accounts and 2010 accounts.

The unaudited summarised balance sheet at 31 March 2011 and the unaudited summarised profit and loss account, unaudited summarised cash flow statement and associated notes for the year then ended have been extracted from the Company's 2011 statutory financial statements which will be finalised shortly and will continue to include a modification within the auditors' opinion with an emphasis of matter opinion in relation to going concern. The comparative figures relating to the year to 31 March 2010 are taken from the audited statutory accounts for that year.

The Annual Report and Accounts for the year ended 31 March 2011 is being posted to shareholders and will be made available on the Company's website www.theofennell.com.