Half Year Report

For Immediate Release 28 September 2017

MOSS BROS GROUP PLC

Half Yearly Results for the 26 weeks ended 29 July 2017

Continued Progress

Moss Bros Group PLC ("the Group"), the 'first choice for men's tailoring', today announces its half yearly results, covering the period from 29 January 2017 to 29 July 2017.

The Group's overall trading performance has continued to show improvement on the prior year, in line with the Board's expectations. Retail sales growth, including e-commerce, continues to underpin the positive performance.

Financial Highlights

· Total Group revenue, excluding VAT, was up 4.3% on the previous year to £66.6m.

· Group like-for-like* sales increased 2.8%

· Like-for-like* retail sales, including e-commerce were up 5.1%

· E-commerce retail sales for the first half grew 14.5% on the prior year and now represent 11.2% of total sales.

· Like for like* hire sales, which represent 12.8% of total sales in the half on a cash taken basis were -8.4% down.

· Retail gross margin was up 0.1% for the half despite having re-introduced a mid-season Sale in response to a much tougher trading environment during the earlier part of the season.

· Overall gross margins were down -0.7%, impacted by the hire sales reduction year on year where fixed depreciation costs relating to hire garments remain constant regardless of the level of sales.

· Operating profit was up 16.6% to £4.2m (HY1 2016 £3.6m)

· Similarly, pre-tax profit was up 15.7% to £4.2m (HY1 2016 £3.7m)

· Effective cash management ongoing, with cash balance of £21.5m at the end of the half (HY1 2016 £21.1m)

· In line with the progressive dividend policy, interim dividend increased by 6.3% to 2.03 pence per share (30 July 2016: 1.91 pence per share)

Operational Highlights

· Ongoing investment in our brand identity and continuing investment in our retail estate through our store opening and refit programmes delivered a strong platform from which to leverage our continually improving product offer.

· 4 new stores opened during the half, 2 were relocated and 2 closed. 129 stores were open and trading at 29 July 2017 (30 July 2016: 125 stores)

· E-commerce sales continue to grow alongside site visitor traffic, particularly on mobile devices.

· 'Tailor Me' custom tailoring service now an established part of the in-store offer.

Current trading

· Retail like-for-like* sales, including VAT, in the first 8 weeks to 23 September 2017 are up 3.5%.

· Hire like for like*, reported on a 'cash taken' basis, is -4.7% down in the first 8 weeks of the second half.

· Early responses to the Autumn/Winter 2017 range across Retail are positive

· The Group's trading performance continues in line with the Board's expectations.

Commenting on the results and outlook, Brian Brick, Chief Executive Officer, said:

"We are pleased with the performance of Moss Bros during the first half in what was a very tough trading environment. The early response to the 2017 Autumn/Winter ranges has been encouraging and we continue to see our retail like-for-like* sales improve.

We remain acutely aware that market conditions remain tough, with a highly competitive retail landscape set to continue alongside an unpredictable economic back-drop. There are significant cost headwinds, driven by National Living Wage, the Apprenticeship Levy and weaker sterling.

We remain agile in our trading approach, whilst continuing to invest wisely in our future growth.

The Group's trading performance continues in line with the Board's expectations.

I would like to thank all of our people for their continued dedication, hard work and contribution to delivering these results."

*Like-for-like (including VAT) represents financial information for e-commerce and stores open during both the current and prior financial periods and compares 26 weeks against 26 weeks, except for stores refitted in the period, where the period closed for refit is excluded from both the current and prior financial periods. Like-for-like Hire and Tailor Me sales are calculated on cash receipts in the period, before adjustment for the movement in the level of deposits held.

***EBITDA is earnings before interest, tax, depreciation, amortisation and exceptional items

For further information please contact:

Moss Bros Group Plc: 0207 447 7200

Brian Brick, Chief Executive Officer

Tony Bennett, Finance Director

Buchanan: 0207 466 5000

Charles Ryland/Victoria Hayns/Catriona Flint

INTERIM MANAGEMENT REPORT

FOR THE 26 WEEKS TO 29 JULY 2017

OVERVIEW

Moss Bros Group PLC retails and hires formal wear and fashion products for men, predominantly in the UK, with retail sales comprising 87%, and Hire 13%, of total sales. The Group retails own brand and third party brand menswear through the Moss Bros fascia, and hires formal wear under the Moss Bros Hire brand through its mainstream stores. The Group also trades through the premium Savoy Taylors Guild fascia in a small number of stores.

Sub brands of Moss London, Moss 1851 and Moss Esquire are now fully established. These sub brands, combining with Savoy Taylors Guild, have created an authoritative and complementary customer offer across a range of fits and prices, underpinning our expertise in formalwear, under the Moss Bros master brand.

The 'Tailor Me' personalisation service launched during 2016 is now available nationwide. It is a simplified set of bespoke options offering a custom made suit, ready for collection within 30 days of placing an order.

REVIEW OF THE FIRST HALF

Profit before tax from continuing operations for the six months to 29 July 2017 was £4.2m, a 16% increase on last year (HY1 2016: £3.7m) driven mainly by strong retail sales growth from both like-for-like* stores, new space and e-commerce underpinned by careful and targeted promotional activity.

The business performed well in the first half against strong comparatives last year and in one of the most competitive retail environments which we have seen for some time. Whilst confident in the value which our regular pricing architecture offers, we re-introduced the spring mid-season sale, ensuring that we were able to offer the best value possible to customers during the half.

Our store teams are increasingly focussed on offering solutions to customers for whatever their occasion or need, whether they choose to buy, hire or 'Tailor Me'. Whilst we cannot know for sure the original intention of customers coming to our stores, more customers are ultimately choosing to buy rather than hire their suits. This is in part reflected in the reduction in hire sales on a like-for-like* basis versus the previous year.

E-commerce continued to achieve strong growth on last year through an increase in visitor numbers. We continue to develop our online capabilities and are particularly conscious of addressing the increasing proportion of shoppers who visit our site via mobile devices.

Trading performance

Total revenue increased by 4.3% in the six months to 29 July 2017 to £66.6m (HY1 2016: £63.8m). Like for like* retail sales performed well, increasing by 5.1%. Moss Bros Hire, the leading brand name in formal hire, recorded a like for like* sales decrease of 8.4%, although the effect of a later Easter and our "£10 Deposit" offer are still yet to fully wash through as the Wedding season does not end fully until the end of September. Across the Group, total like for like* sales were up 2.8% in the first half.

Retail gross margin rate was up 0.1% for the half despite the re-introduction of a mid-season sale. Hire margin rates were 3.5% lower resulting from the fixed depreciation charges within the reduced volume of Hire orders placed. Overall gross margin rate was 0.7% lower at 61.2% (HY1 2016: 61.9%).

The refit programme to modernise the Moss Bros store portfolio nears completion and our refitted stores continue to achieve their payback targets. 4 stores were refitted in the 26 weeks to 29 July 2017 (HY1 2016: 7) and a further 4 stores are scheduled to be refitted in the second half of the financial year. 103 new and refitted stores now trade in the new format and this is continuing to change customers' perception of the business to a modern, multichannel retailer that is also the leading brand in Hire.

In line with our strategy of improving the store portfolio we opened 4 new stores; At Dundrum in Ireland, Metrocentre in Gateshead, at the new Rushden Lakes development near Northampton and a concession store in Bexleyheath. We also relocated our Bicester and Cardiff stores during the first half, and closed 2 non-core stores. Moss Bros currently trades from 129 stores. We will continue to improve the store portfolio where locations are found that meet our investment criteria.

Like for like* hire sales were 8.4% below 2016 levels and as mentioned above, will only recover fully to a 'normalised' level at the end of the 2017 wedding season in September. The newly introduced Lounge Suits have again proved very popular with customers. The second half of the year sees less impact from wedding hire bookings as we move into the more traditional eveningwear season where again, new product will feature strongly within our Hire offer. Whilst still small in terms of sales volume, we continue to develop our online hire proposition. Our new Hire website launched during the half which features new functionality to enable the creation of 'My Outfit' - an online outfit 'scratch pad' which can later be recalled and updated in-store when customers are further along the Hire journey.

Our online capability continues to grow, with e-commerce retail sales up 14.5% on the previous year. Site visitor numbers continue to improve, especially mobile device traffic which now contributes 47%, of online sales. Overall online sales now comprise 11.2% of total Group revenue (HY1 2016: 10.3%).

Our two store pilot in the Middle East has shown reasonable growth on the year but remains firmly a trial as we seek to refine our approach whilst continuing to enable the potential for further expansion to be evaluated at relatively low risk and cost to the business.

Costs remain tightly controlled with expenditure focussed on areas which support our longer term goals. We will continue to challenge all areas of cost in order to ensure that our cost base remains commensurate to the growth in both sales and gross profit which we deliver.

Our product supply relationships, prices and routes are continually reviewed and we have undertaken a further consolidation of our supply base for Spring/Summer 2018 product. Foreign currency exposure, principally US Dollar, relates to approximately 35% of our product buy for Autumn/Winter 2017 and will increase for the following season to approximately 55%. Our USD requirement is already fully hedged for both of these proceeding seasons.

The development of our people remains key to delivering our ambition of becoming the first choice for men's tailoring. Investment in our people through recruitment, induction, training and development, performance appraisal and performance management is vital to delivering our strategic goals.

*Like-for-like (including VAT) represents financial information for e-commerce and stores open during both the current and prior financial periods and compares 26 weeks against 26 weeks, except for stores refitted in the period, where the period closed for refit is excluded from both the current and prior financial periods. Like-for-like Hire and Tailor Me sales are calculated on cash receipts in the period, before adjustment for the movement in the level of deposits held

FINANCIAL SUMMARY

A summary of the key financial results is set out in the table below.

* Administrative expenses and shops' selling and marketing costs are not analysed between Retail and Hire.

** EBITDA is earnings before interest, tax, depreciation and amortisation on continuing activities. See Note 6.

DIVIDEND AND DIVIDEND POLICY

The Board has decided to declare an interim dividend of 2.03 pence per share (HY1 2016: 1.91 pence per share) to be paid on 24 November 2017, to shareholders on the register on 27 October 2017 (ex dividend date 26 October 2017).

FINANCIAL POSITION

Net assets reduced to £35.6m (30 July 2016: £37.3m).

The close management of cash remains a focus. The underlying cash position at 29 July 2017 was £21.5m (30 July 2016: £21.1m). Net cash inflow for the six months ended 29 July 2017 was £2.0m. Dividends of £4.0m were paid in the period. The Group continues to meet its day to day working capital requirements through surplus cash balances.

Total net inventory as at 29 July 2017 was £15.2m (30 July 2016: £14.6m). This increase was in line with the increase in revenue.

RELATED PARTY TRANSACTIONS

The Group had no material related party transactions other than on an arm's length basis, which might reasonably be expected to influence decisions made by other users of the condensed set of financial statements. Details of all related party transactions are disclosed in the notes to this Interim Management Report.

RISKS AND UNCERTAINTIES

Details of all potential risks and uncertainties are disclosed in the note 2 of this Interim Management Report.

CAUTIONARY STATEMENT

This Interim Management Report ("IMR") has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This IMR should not be relied on by any other party or for any other purpose.

This IMR contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the time of their approval of this IMR but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

This IMR has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to Moss Bros Group PLC and its subsidiary undertakings when viewed as a whole.

DIRECTORS' RESPONSIBILITY STATEMENT

We confirm to the best of our knowledge:

a: the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

b: the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c: the interim management report includes a fair review of the information required by the DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

The directors are responsible for maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Moss Bros Group PLC8 St. John's HillLondonSW11 1SA

By Order of the Board,

Brian Brick Tony Bennett

Chief Executive Officer Finance Director and Company Secretary

MOSS BROS GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE 26 WEEKS TO 29 JULY 2017

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 26 WEEKS TO 29 JULY 2017

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 29 JULY 2017

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE 26 WEEKS TO 29 JULY 2017

NOTES TO THE CONDENSED SET OF CONSOLIDATED FINANCIAL STATEMENTSFOR THE 26 WEEKS TO 29 JULY 2017

1. GENERAL INFORMATION

The results for the 26 weeks ended 29 July 2017 and 30 July 2016 are neither audited nor reviewed by the Group's auditor.

The information for the 52 weeks ended 28 January 2017 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

2. ACCOUNTING POLICIES

BASIS OF PREPARATION

The annual financial statements of Moss Bros Group PLC are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

The condensed set of consolidated financial statements included in this half-yearly report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union.

GOING CONCERN

The Directors are satisfied that the Group and Company have sufficient resources to continue in operation for the foreseeable future, being a period of at least 12 months from the date of approval of this half-yearly report. Accordingly, they continue to adopt the going concern basis in preparing the half-yearly report and financial statements.

The Directors believe the Group is well placed to manage its business risks successfully. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current and anticipated cash resources.

CHANGES IN ACCOUNTING POLICY

The same accounting policies, presentation and methods of computation are followed in this half-yearly report as applied in the Group's latest annual audited financial statements for the 52 weeks ended 28 January 2017.

RISKS AND UNCERTAINTIES

There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The Directors have revisited and updated the principal risks and uncertainties as published in the annual report for the 52 weeks ended 28 January 2017, which are summarised below:

3. BUSINESS SEGMENTS

The majority of the Company's turnover arose in the United Kingdom, with the exception of two stores in Ireland.

IFRS 8 'Operating Segments' requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive to allocate resources to the segments and to assess their performance.

Information reported to the Group's Chief Executive Officer for the purposes of resource allocation and assessment of segment performance is focused on the split of Retail and Hire.

Information regarding the Group's continuing operating segments is reported within the Financial Summary on page 5.

Only revenue and gross profit have been reported for the Group's business segments; Retail and Hire, as the main operating costs, being property, related overheads and staff, cannot be separately identifiable as they both use the same stores and hence operating profit is not reported to the Chief Executive Officer by Retail and Hire. Revenue and gross profit are the measures reported to the Chief Executive Officer for the purpose of resource allocation and assessment of segmental performance.

On the same basis, assets cannot be allocated between Retail and Hire, and are not reported to the Chief Executive Officer seperately.

4. TAX

The effective tax rate on the reported profit before tax for the 26 week period to 29 July 2017 is 22.7% (30 July 2016: 17.7%; 28 January 2017: 22.7%), representing the expected average annual effective tax rate for the full year, applied to the pre-tax income of the 26 week period.

5. EARNINGS PER SHARE

Basic earnings per ordinary share is based on the weighted average of 100,417,250 (30 July 2016: 99,992,821; 28 January 2017: 100,211,983) ordinary shares in issue during the period after deducting for shares held by the Employee Benefit Trust and are calculated by reference to the profit attributable to shareholders of £3,265,000 (30 July 2016: £3,005,000; 28 January 2017: £5,523,000).

Diluted earnings per ordinary share is based upon the weighted average of 100,812,389 (30 July 2016: 102,519,282; 28 January 2017: 102,559,814) ordinary shares, after deducting shares held by the employee Benefit Trust, that were non-dilutive for the period presented and could dilute earnings per share in the future and are calculated by reference to the profit attributable to shareholders as stated above.

6. EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION ("EBITDA")

EBITDA as reported in the Financial Summary on page 5 is calculated as follows:

7. DIVIDENDS

The directors have declared an interim dividend of 2.03 pence per share (HY1 2016: 1.91 pence per share) payable on 24 November 2017 to shareholders on the register on 27 October 2017 with an ex dividend date of 26 October 2017.

8. RELATED PARTY TRANSACTIONS

The Group had no material related party transactions other than on an arm's length basis, which might reasonably be expected to influence decisions made by other users of the condensed set of financial statements.

TRADING TRANSACTIONS

Moss Bros agreed a sublet of a store lease to White Stuff Ltd ("White Stuff"). Debbie Hewitt, Chairman of Moss Bros Group plc, is also Chairman and Director of White Stuff. The transaction was on arms length commercial terms and Debbie Hewitt took no part in determining the commercial terms offered by Moss Bros or in the decision to accept them taken by White Stuff. The sublet is from June 2014 until December 2021 at a rent of £50,000 per year. A capital contribution of £50,000 was paid to White Stuff on completion of the agreement.

At 29 July 2017, the balance due from White Stuff was £nil in respect of service charges payable in arrears.

Berkeley Burke Trustee Company Limited is considered a related party of the Group because Brian Brick, Chief Executive Officer of Moss Bros Group plc is a beneficiary of the pension fund. On 8 December 2011, Moss Bros Group plc agreed a long term lease with Berkeley Burke Trustee Company Limited, a pension fund and the superior landlord, for a store in Hounslow, on an arm's length basis.

AAK Limited is considered a related party of the Group because Maurice Helfgott, Senior Independent Non- Executive Director of Moss Bros Group plc, has a close relative holding a key management position with significant influence and who is a significant shareholder at AAK Limited. All transactions with AAK Limited have been on an arm's length basis. During the period to 29 July 2017, total purchases from AAK Limited were £1.2m, including VAT, (28 January 2017: £4.3m, including VAT), of which £nil was outstanding at 29 July 2017.

9. SHARE BASED PAYMENTS

In 2009/10 a new equity settled Long Term Incentive Plan (LTIP) was approved by shareholders. During the period to 29 July 2017, under the same 2009/10 LTIP scheme, 1,075,466 shares were awarded to senior employees on 20 April 2017. In accordance with this plan, the shares are exercisable at nil cost, subject to the satisfaction of performance conditions and the requirement for the continued employment during the vesting period. The fair value is measured at grant date using the Black Scholes pricing model and recognised over the vesting period. These grants are accounted for in accordance with IFRS 2 'Share-based Payments'.

A Save As You Earn (SAYE) scheme was approved and adopted in 2012/13 and is open to all employees to benefit from the continued growth of the business. During the period to 29 July 2017, a further grant was made.

The amount recorded in the income statement for share based payments under IFRS2 in the period to 29 July 2017 was £32,667 (30 July 2016: £296,000; 28 January 2017: £409,000).

A deferred tax adjustment was recorded in the share-based payment reserve of £57,000 credit in the period to 29 July 2017 (30 July 2016: debit of £20,000, 28 January 2017: debit of £50,000).

10. HALF-YEARLY REPORT

This half-yearly report is available on application from the Company Secretary, Moss Bros Group PLC,

8 St. John's Hill, London SW11 1SA (and on the Company's website www.mossbros.co.uk).