Jessops, the UKu2019s leading photographic retailer, today announces the outcome of its Strategic Review, its new banking facilities to December 2008 and its interim results for the 26 weeks to 1 April 2007.

21 June 2007

JESSOPS PLC

Completion of Strategic Review

Interim Results for the 26 Weeks to 1 April 2007

Jessops, the UK?s leading photographic retailer, today announces the outcome of its Strategic Review, its new banking facilities to December 2008 and its interim results for the 26 weeks to 1 April 2007.

The Strategic Review addresses the fundamental issues that face Jessops in this challenging market. This strategy re-positions Jessops as a true multi-channel retailer with a strong presence in the growing digital printing services market in addition to continued leadership in digital cameras. This will be supported by market leading customer service.

In addition Jessops announces several immediate profit enhancing initiatives to address the cost base across the store portfolio and its support functions. This will create a strong platform for future growth.

Strategic Review ? key points

? Increased focus on growing digital printing and photo merchandise markets, building on recently launched multi-channel collect@store service;

? Focused new ?bricks & clicks? strategy via jessops.com and Jessops Picture House;

? Planned closure of 81 stores ? 47 overlapping, 31 loss-making and three subject to redevelopment;

? Remaining 234 stores are profitable and cash generative;

? Sale of aged stock through outsourced clearance specialists;

? Reduction in central overheads by 20%, and total overheads reduced by over £15m; and

? Non-recurring costs of restructuring actions in the full year of 2007 amount to around £25m, of which £6.9m are cash costs of closing the stores and re-organising the support centre, for which funding is in place

New banking facilities

? £66.5m facility agreed with HSBC to December 2008, of which £60m is committed;

? Terms agreed with Pension Fund Trustees; Pension Regulator?s clearance is being sought;

? Interest charged at up to 5.25% over LIBOR;

? Deferred re-financing fee of £7m, payable in December 2008; and

? The issue of Warrants to HSBC over unissued ordinary shares equivalent to 10% of Jessops? issued share capital (5% exercisable from June 2007 and 5% after the AGM to be held in January 2008)

Commenting on the Strategic Review, David Adams, Executive Chairman, said:

?Since I joined as Chairman at the beginning of May I have been delighted with the progress that has been made by Chris Langley and his team in developing our strategy for the future. The strategy allows us to re-position Jessops as a true multi-channel retailer, building on our core strengths in the digital imaging market place.

?We have been working closely with our bankers HSBC and are pleased to announce that we have agreed new banking facilities. These facilities will provide us with the opportunity over the next 18 months to build a solid platform for the long term. I would also like to thank our suppliers for their support and the entire Jessops team who have worked extremely hard over the past few months in difficult circumstances.

?The Board is confident that Jessops will deliver a significant turnaround in its financial performance.?

Interim Results

? Interim results in line with guidance given on 28 March 2007;

? Total sales of £178.9m ( 2006: £177.8m);

? Like for like sales down 2.8% (2006: increase 2.3%);

? Loss before tax and non-recurring items of £8.5m (2006: profit £5.1m);

? First half non-recurring and non-cash items of £16.7m (2006: nil);

? Loss before tax of £25.2m (2006: profit £5.1m);

? Loss per share before non-recurring items of 6.4p (2006: earnings 3.3p);

? Basic loss per share of 19.1p (2006: earnings 3.3p);

? No interim dividend declared (2006: 0.75p per share); and

? Net debt at 1 April 2007 of £61.5m (2006: £53.6m)

Current Trading and Outlook

? Trading since 1 April impacted by shortages of key product lines caused by financial uncertainty. This is reflected in total sales for the 12 weeks to 17 June down 9.8% and like for like sales down 12.9%;

? Jessops has been working closely with its suppliers and the shortage of key product lines is now much improved going into the busy summer trading period; and

? The sales shortfall since 1 April has been mitigated by an improved gross margin and a continued focus on costs.

In the statement of 28 March 2007, the Board indicated a full year loss before tax of around £5m, before any costs relating to the strategic review and restructuring. The underlying performance of the business remains in line with this guidance but, as a result of the refinancing the assumed interest charge in the second half will increase by £1m. There will also be a non-cash charge to the profit and loss account of £2m representing this year?s element of the total deferred refinancing costs. In addition the impact of converting the 39 stores into clearance stores, and other store closures in the current financial year, is anticipated to result in a reduced profit contribution from these stores over the summer trading period of around £1.5m.

Chris Langley, Chief Executive of Jessops added:

?The strategy and actions we have announced today build on the underlying strengths of Jessops and our unique position as the leading photographic retailer in the UK.

?Our results show the extent of the tough market conditions we have faced in the past eight months and the severe price deflation affecting our markets. Despite this, the number of cameras sold increased and we continued to make market share gains.

?Phase one of our strategic plan is set out in the restructuring actions announced today. Phase two involves focusing the business around an ?image enjoyment? customer-led proposition and on those parts of our market that continue to demonstrate growth, namely in-store and online digital printing and digital SLR camera sales. We will deliver this strategy by maintaining our market leading levels of customer service.

?Whilst the market is likely to remain challenging, I am confident that the steps we are taking will provide us with a stronger platform for the future.

?I would like to thank all Jessops colleagues and our suppliers for their support during these difficult past months. We have a strong team in place who have the skills and experience to ensure that we will deliver this strategic plan.?

For further information: Tel: 0207 357 9477

Jessops

David Adams, Executive Chairman

Chris Langley, Chief Executive

Ian Harris, Finance Director

Hogarth Partnership

James Longfield/Rachel Hirst/Anthony Arthur

INTERIM STATEMENT

Results

The six months to 1 April 2007 were a difficult trading period for Jessops in what remained a challenging retail environment. As a consequence, on 28 March 2007 Jessops announced it was undertaking a Strategic Review of its business and the results of this review are set out in the separate section later in this statement.

Total sales for the period were marginally higher at £178.9m (2006: £177.8m) with retail like for like sales, combining stores, internet and mail order, down 2.8%.

Gross profit margins before non-recurring items fell by approximately four percentage points to 26.8% (2006: 31.0%) primarily due to price deflation and the £2m provision against stock that was set out in the statement of 28 February 2007.

There was an operating loss before non-recurring items of £7m (2006: profit £6.5m) and the loss before tax and non-recurring items amounted to £8.5m (2006: profit £5.1m). Loss per share before non-recurring items was 6.4p (2006: earnings 3.3p).

As a result of the Strategic Review announced today the Group is closing 81 stores and selling older stock with a book value of £15m through 39 of these stores, plus wholesale. This has resulted in total non-recurring costs in the first half of £16.7m before tax, comprising an £11.8m loss on disposal of the stock, a £4.8m provision against the value of the assets in the 81 stores being disposed, and £0.1m professional fees incurred to 1 April 2007.

Total loss before tax for the period was £25.2m (2006: profit £5.1m). Total loss per share for the period was 19.1p (2006: earnings 3.3p).

The Directors are not recommending payment of an interim dividend (2006: 0.75p per share).

Net debt at 1 April 2007 was £61.5m (2006: £53.6m; 30 September 2006: £34.9m). Net assets at 1 April 2007 were £79.7m (2006: £90.9m; 30 September 2006: £98.9m).

New banking facilities

Jessops has today announced new banking facilities with HSBC. A new facility of £66.5m (£60m committed) has been agreed and extends to December 2008, subject only to completion of formal documentation and Pension Regulator clearance.

The principal terms of the banking arrangement are for an interest rate of up to 5.25% over LIBOR. On £40m of the facility the cash interest payment is 2.0% over LIBOR, with the remaining interest of 3.25% over LIBOR rolled-up and payable in December 2008. Additional deferred financing fees of £7m are also payable in December 2008.

Part of the terms agreed involves the issue of Warrants over unissued ordinary shares representing 10% of Jessops? issued share capital on the basis that 5% of these Warrants are exercisable from June 2007, with the remaining 5% issued and exercisable post the AGM in January 2008. Should Jessops be unable to issue the second tranche of the Warrants, this tranche will be replaced by the payment of a £3m cash fee payable in February 2008. The facilities will be fully secured against the Group?s assets and the basis for the sharing of this security with the Pension Fund has been agreed with the Pension Fund Trustees, subject to the Pension Regulator?s clearance.

Review of Trading

The Digital SLR market, in which Jessops is the market leader, continued to grow, albeit at lower levels than previously. The digital compact camera market continued to be soft as a result of severe price deflation, and similar conditions were experienced in the market for memory cards.

For Jessops, total digital camera sales in the period were up 2.4% in volume, but were broadly flat by sales value. Digital SLR sales were up 24.9% in value and 57.1% in volume. The Group?s overall share of the digital camera market increased to 21.7% in March 2007, up from 19.7% in March 2006 (source: GfK), largely driven by the Group?s share of the growing digital SLR market increasing from 34.4% in March 2006 to 42.5% in March 2007.

Digital photo processing continues to contribute strongly to the Group?s results with digital printing up 10.4% by value compared with the first half of 2006 to £6.9m (2006: £6.3m). Digital printing sales were helped by the Group?s continued focus on higher value gifts, such as photo books and calendars. Jessops averaged 1.5 million digital prints per week in the first half (2006: 1.3 million). Jessops Picture House, the online photo printing and storage site, continues to show good growth and as at 1 April it had over 500,000 registered users. Over 9 million photos have been uploaded to the site and 6 million prints ordered online. The rate of sign up of new customers continues to be encouraging and the website is on track to achieve 1 million customers by Spring 2008.

Jessops? launched its new collect@store service on 6 March 2007, enabling customers to place orders online and collect them from their nearest store within as little as one hour. This has been very well received by customers and already 65% of jessops.com sales are delivered through collect@store. This offering will be expanded over our busy summer trading period.

Board Changes

As announced on 4 May, David Adams was appointed Executive Chairman with immediate effect. David has over 20 years? experience in retailing, latterly as Finance Director and Deputy Chief Executive of House of Fraser plc and a non-executive director of Ottakars plc. He replaced Gavin Simonds, who had been Chairman of Jessops since the flotation in November 2004 and who announced in March of this year that he was stepping down. The Board would like to thank Gavin for his valuable contribution to the Group since flotation and wish him well for the future.

On 28 March it was announced that Robin Whitbread, Commercial Director, had also left the Group and the Board also wishes him well for the future.

Strategic Review

On 28 March 2007 Jessops announced the commencement of a Strategic Review. The Strategic Review addresses the fundamental issues that face Jessops in this challenging market. This strategy re-positions Jessops as a true multi-channel retailer with a strong presence in the growing digital printing services market in addition to continued leadership in digital cameras. This will be supported by market leading customer service.

In addition Jessops announces several immediate profit enhancing initiatives to address the cost base across the store portfolio and its support functions. This will create a strong platform for future growth.

The key elements and actions of the first phase are:

? Increased focus on the growing digital printing and photo merchandise markets;

? New ?bricks & clicks? strategy via jessops.com and Jessops Picture House supported by a single ?pure play? website. Other websites to be closed;

? The planned closure of 81 stores by 30 September 2007. Of these, 47 are stores that overlap with existing stores, 31 are loss-making and 3 are subject to redevelopments;

? The sale of aged stock, with a book value of £15m, through outsourced clearance specialists. The clearance of this stock will be achieved over a 13 week clearance period commencing 26 June 2007 using 39 of the stores identified for closure, plus wholesale;

? A 20% reduction in central overheads and a total overhead reduction including store closures of over £15m. This will result in the loss of approximately 550 jobs across the Group;

? Re-profiling of store staff levels to reflect new trading conditions, whilst maintaining market leading customer service standards.

The property marketing exercise for the stores identified for closure is well advanced, with six stores already closed and 19 stores at the end of their lease. Jessops has received offers or strong expressions of interest on a further 42 stores and the remaining 14 stores are in the process of being marketed.

Although the closing stores represent 26% of the total store portfolio, only 11% of total sales are expected to be lost as a result of the store closure programme, as sales transfer to continuing stores. This expectation is supported by trading patterns for overlapping stores that have already been closed.

The non-recurring costs of these restructuring actions in the full year of 2007 amount to £25.1m, of which £16.7m are being recognised in the first half. Cash costs of the store closure and central overhead reduction programme are £6.9m, for which funding is in place and which will be offset in part by the cash proceeds received from the stock clearance programme. In addition, the stock clearance programme should improve trading margins going forward.

Phase two of the strategic plan involves the repositioning of the business around a compelling customer-led proposition based on ?image enjoyment? and focusing sales activity on those areas of the photographic market that continue to demonstrate sustainable growth, namely digital printing (online and in store) and digital SLR camera and accessory sales. Elements of this repositioning strategy include:

? Further development of Jessops? multi-channel retail offer through its recently launched collect@store service to drive footfall;

? Differentiating Jessops from ?pure-play? online camera retailers and supermarkets with increased emphasis on staff expertise, customer service and convenience;

? Introducing enhanced spacemix store layouts and in-store promotional materials to focus on higher margin digital printing, photo gifts and accessory sales;

? Continue to drive Jessops Picture House customer registrations to create CRM database for special offers and store promotions;

? Developing new supply chain capability to lower stock levels and reduce working capital.

The ongoing Jessops store portfolio will consist of 234 stores, all of which are profitable and cash generative. In the last financial year ended 30 September 2006 these continuing stores represented 72% of total Group sales.

Current Trading and Outlook

Trading in the 12 weeks to 17 June 2007 has remained difficult, in a tough market. This has been exacerbated by shortages of key product lines due to uncertainties about the Group?s financial position. As a result, total sales in the 12 week period were down 9.8% by value and like for like sales down 12.9%. The sales shortfall since 1 April has been mitigated by an improved gross margin and a continued focus on costs.

Jessops has been working closely with its suppliers and the shortage of key product lines is now much improved going into the busy summer trading period.

In the statement of 28 March 2007, the Board indicated a full year loss before tax of around £5m, before any costs relating to the strategic review and restructuring. The underlying performance of the business remains in line with this guidance, but, as a result of the refinancing the assumed interest charge in the second half will now increase by £1m. There will also be a non-cash charge to the profit and loss account of £2m representing this year?s element of the total deferred refinancing costs. Additionally, the impact of converting 39 stores into clearance stores, and the closing of certain other stores in the current financial year, is anticipated to result in a reduced profit contribution from these stores over the summer period of around £1.5m.

The Group has been working closely with its bankers HSBC and is pleased to announce that it has agreed new banking facilities. These facilities will provide the Group with the opportunity over the next 18 months to build a solid platform for the long term. I would also like to thank our suppliers for their support and the entire Jessops team who have worked extremely hard over the past few months in difficult circumstances.

Whilst the market is likely to remain challenging, the Board is confident that the actions being taken will provide Jessops with a stronger platform for the future.

The Board is confident that Jessops will deliver a significant turnaround in its financial performance

David Adams

Chairman

21 June 2007

Consolidated income statement

For the period ended 1 April 2007

Note

Results for the period ended

1 April 2007 before non-recurring items Non recurring items in the period ended 1 April 2007

(see note 2)

Total Period ended

1 April 2007

Period ended

2 April 2006

Year ended

30 September 2006

£000 £000 £000 £000 £000

Revenue 178,974 – 178,974 177,778 350,044

Cost of sales (130,943) (11,800) (142,743) (122,681) (234,841)

Gross profit 48,031 (11,800) 36,231 55,097 115,203

Operating expenses (55,003) (4,914) (59,917) (48,576) (95,220)

Operating (loss) / profit (6,972) (16,714) (23,686) 6,521 19,983

Financing costs (1,665) – (1,665) (1,999) (4,034)

Finance income 138 – 138 533 1,059

(Loss) / profit before

taxation (8,499) (16,714) (25,213) 5,055 17,008

Taxation 4 1,868 3,674 5,542 (1,712) (5,746)

(Loss) / profit for the

period (6,631) (13,040) (19,671) 3,343 11,262

(Loss) / earnings per

ordinary share ? basic 6 (19.1)p 3.3p 11.0p

(Loss) / earnings per

ordinary share ? diluted 6 (19.1)p 3.3p 10.9p

Dividend proposed per

ordinary share – 0.75p 1.5p

Dividend paid per ordinary

share 1.5p 1.4p 2.15p

All activities relate to continuing operations. All (loss) / profit is attributable to equity shareholders.

Consolidated statement of recognised income and expense

For the period ended 1 April 2007

Period ended

1 April

2007 Period ended

2 April

2006 Year ended

30 September 2006

£000 £000 £000

Actuarial gain recognised in the

pension scheme 2,525 207 1,232

Deferred tax on actuarial gain in the

pension scheme (758) (62) (370)

Foreign exchange translation differences (2) – 2

Net income and expense recognised

directly in equity 1,765 145 864

(Loss) / profit for period (18,774) 3,343 11,262

Total recognised income and expense for

the period (17,009) 3,488 12,126

All recognised income and expense is attributable to equity shareholders.

Consolidated balance sheet

As at 1 April 2007

1 April

2007 2 April

2006 30 September 2006

£000 £000 £000

Non current assets

Goodwill 77,959 77,064 77,064

Intangible assets 9,537 9,159 9,107

Property, plant and equipment 32,337 32,334 36,921

Deferred tax 1,799 2,903 2,557

121,632 121,460 125,649

Current Assets

Inventories 39,897 52,869 61,853

Trade and other receivables 14,589 16,107 13,466

Current tax receivable 4,950 – 105

Cash and cash equivalents – – –

59,436 68,976 75,424

Current liabilities

Bank overdrafts and borrowings (45,542) (28,548) (13,749)

Other borrowings – – (1,291)

Obligations under finance leases (192) (21) (21)

Trade and other payables (31,539) (34,291) (56,043)

Tax liabilities – – –

(77,273) (62,860) (71,104)

Net current (liabilities) / assets (17,837) 6,116 4,320

Non current liabilities

Borrowings (15,855) (23,671) (19,717)

Other borrowings – (1,291) –

Obligations under finance leases (90) (111) (100)

Retirement benefits obligations (5,529) (9,678) (8,304)

Deferred tax liabilities (2,604) (1,921) (2,962)

(24,078) (36,672) (31,083)

Net assets 79,717 90,904 98,886

Equity

Issued capital 2,571 2,571 2,571

Share premium 89,161 89,161 89,161

Retained earnings (12,015) (828) 7,152

Translation reserve – – 2

Total equity attributable to equity

shareholders of the parent 79,717 90,904 98,886

Consolidated cash flow statement

For the period ended 1 April 2007

Period ended

1 April

2007 Period ended

2 April

2006 Year ended

30 September

2006

£000 £000 £000

Cash flows from operating activities

(Loss) / profit before taxation (25,213) 5,055 17,008

Adjusted for:

Finance income (138) (533) (1,059)

Financing costs 1,665 1,999 4,034

Depreciation and amortization 9,041 3,487 7,137

Share-based payment expense 280 44 186

Exchange difference (2) – 4

Loss / (profit) on disposal of property,

plant and equipment (20) 12 2

Pension contributions in excess of charge (368) (430) (927)

Operating cash (outflow) / inflow before

movement in working capital (14,755) 9,634 26,385

Decrease / (increase) in stocks 22,206 3,582 (5,402)

Increase in debtors (1,076) (4,503) (2,016)

(Decrease) / increase in creditors (25,371) (14,158) 7,338

Cash generated by operations (18,996) (5,445) 26,305

Taxes received / (paid) 462 (2,225) (5,104)

Interest paid (1,280) (1,374) (2,433)

Net cash from operating activities (19,814) (9,044) 18,768

Cash flows from investing activities

Proceeds on disposal of property, plant

and equipment 20 – 64

Acquisition of property plant and

equipment (4,080) (3,193) (10,610)

Acquisition of intangible assets (643) (573) (1,397)

Acquisition of business assets (200) (97) (97)

Net cash from investing activities (4,903) (3,863) (12,040)

Cash flows from financing activities

Repayment of borrowings (3,500) (2,000) (5,500)

Repayment of finance lease liabilities (119) (10) (21)

Purchase of own shares – – (54)

Redemption of preference shares (1,291) – –

Dividends paid (1,543) (1,440) (2,211)

Net cash from financing activities (6,453) (3,450) (7,786)

Net decrease in cash and cash

equivalents (31,170) (16,357) (1,058)

Cash and cash equivalents at the

beginning of the period (6,249) (5,191) (5,191)

Cash and cash equivalents at the end

of the period (37,419) (21,548) (6,249)

Notes to the interim results

1 Basis of preparation

This unaudited interim financial information is for the 26 week period ending 1 April 2007 and is prepared in accordance with International Financial Reporting Standards (?IFRS?) adopted for use in the EU (?Adopted IFRS?) at 1 April 2007 and under the historical cost convention.

The interim financial information for the 26 week periods ended 1 April 2007 and 2 April 2006 have not been audited. Figures for the 52 week period ended 30 September 2006 are extracted from the Company?s statutory accounts for that financial year and do not themselves constitute statutory accounts for the purposes of Section 240 of the Companies Act 1985. These accounts, prepared under IFRS, have been reported on by the Company?s auditors and delivered to the Registrar of Companies. The auditor?s report was unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985.

In preparing the interim statement, management has applied the principal accounting policies as set out in the Jessops Plc Annual Report and Financial Statements 2006.

2 Non-recurring items

On 21 June 2007, the Directors secured a new £66.5m banking facility until 31 December 2008. As a result of the refinancing exercise, professional costs of £0.1m had been incurred at 1 April 2007. To support the facility the Directors have undertaken a detailed strategic review of the business. During this process, the net realisable value of stock at 1 April 2007 was reviewed and an exceptional charge has been incurred against slow moving stock with book value of £15m. Furthermore, the value of fixed assets held at stores which are to be closed has been reviewed with a resulting impairment charge against these assets. The tax effect of these non-recurring items is a credit of £3.7m.

£?000

Exceptional stock write down 11,800

Fixed asset impairment 4,809

Professional fees incurred before 1 April 2007 105

Tax impact on exceptional stock write down and professional fees (3,674)

Total 13,040

3 Segmental reporting

The Group has one main business segment, which is retail, and one main geographical segment, which is the United Kingdom. The business segment reporting format reflects the Group?s management and internal reporting structure.

Notes to the interim results continued

4 Taxation

The taxation charge for the period has been calculated on the basis of the estimated effective tax rate for the full year of 22.0% (period ended 2 April 2006: 33.8%).

5 Dividends

The directors do not propose an interim dividend for the period ended 1 April 2007 (0.75p per ordinary share for the period ended 2 April 2006 equating to £771,000).

6 Earnings per share

Basic earnings / (loss) per share is calculated by dividing the profit for the period attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period.

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. These represent share options granted to employees where the exercise price is less than the average market price of the Company?s ordinary shares during the period.

Weighted average numbers of shares:

Period ended

1 April

2007 Period ended

2 April

2006

Year ended

30 September 2006

?000 ?000 ?000

Weighted average number of shares in issue during the period 102,852 102,838 102,838

Impact of warrants and share options – 81 257

Number of shares for diluted (loss) / earnings per share 102,852 102,919 103,095

In addition to basic (loss) / earnings per ordinary share, an additional adjusted earnings per share has been provided below which excludes non-recurring costs (net of tax). The earnings used for the basic and additional calculations, together with the resultant basic earnings per share are shown below:

Period ended

1 April

2007 Period ended

2 April

2006

Year ended

30 September 2006

£?000 £?000 £?000

(Loss) / profit for the period (19,671) 3,343 11,262

Non-recurring costs (see note 2) 16,714 – –

Tax impact of non-recurring costs (see note 2) (3,674) – –

(Loss) / profit for the period excluding non-recurring costs (6,631) 3,343 11,262

(Loss) / earnings per ordinary share ? basic (19.1)p 3.3p 11.0p

Adjusted earnings per ordinary share ? basic (6.4)p 3.3p 10.9p

Notes to the interim results continued

7 Analysis of movement in reserves

Share Share Retained Exchange Total

Capital premium earnings Gains Equity

£’000 £’000 £’000 £?000 £’000

As at 1 October 2005 2,571 89,161 (2,920) – 88,812

Profit for the period – – 3,343 – 3,343

Employee share option scheme – – 44 – 44

Actuarial gain (net of tax) – – 145 – 145

Dividends paid – – (1,440) – (1,440)

As at 2 April 2006 2,571 89,161 (828) – 90,904

Profit for the period – – 7,919 – 7,919

Employee share option scheme – – 142 – 142

Deferred tax on share options – – 27 – 27

Purchase of own shares – – (54) – (54)

Actuarial loss (net of tax) – – 717 – 717

Dividends paid – – (771) – (771)

Exchange gains – – 2 2

As at 30 September 2006 2,571 89,161 7,152 2 98,886

Loss for the period – – (19,671) – (19,671)

Employee share option scheme – – 280 – 280

Actuarial gain (net of tax) – – 1,767 – 1,767

Dividends paid – – (1,543) – (1,543)

Exchange gains – – – (2) (2)

As at 1 April 2007 2,571 89,161 (12,015) – 79,717

Notes to the interim results continued

8 Reconciliation of net cash flow to movement in net debt

Period ended

1 April

2007 Period ended

2 April

2006 Year ended

30 September 2006

£000 £000 £000

Decrease in cash in the period (31,170) (16,357) (1,058)

B Preference shares in Camera Equity Limited redeemed 1,291 – –

Bank loans repaid 3,500 2,000 5,500

Capital elements of finance lease repayments 119 10 21

Change in net debt resulting from cash flows 26, 260 (14,347) 4,463

Movement on loan fees (46) (46) (92)

New finance lease agreement in year (280) – –

Movement in net debt (26,586) (14,393) 4,371

Net debt brought forward (34,878) (39,249) (39,249)

Net debt carried forward (61,464) (53,642) (34,878)

9 Analysis of movement in net debt

At 1 October 2006 Cash flow Other non cash changes At 1 April 2007

Bank overdraft (6,249) (31,170) – (37,419)

(6,249) (31,170) – (37,419)

Debt due within one year (7,500) 3,500 (4,000) (8,000)

Debt due after one year (19,717) – 3,954 (15,763)

B preference shares in Camera Equity Limited (1,291) 1,291 – –

Finance lease creditor (121) (161) – (282)

Net debt (34,878) (26,540) (46) (61,464)

10 Announcement

The interim report was approved by the Board on 21 June 2007 and copies will be available from the registered office at Jessop House, 98 Scudamore Road, Leicester, LE3 1TZ or from the website at www.jessops.com.