<PAGE>

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D. C. 20549
                                  FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the Quarter Ended March 31, 2003
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

<TABLE>
<CAPTION>
     ----------------------------------------------------------------------------------------
     Commission        Exact Name of Registrant as        State of            I.R.S.
     File Number       Specified in its Charter and       Incorporation       Employer
                       Principal Office Address and                           Identification
                       Telephone Number                                       Number
     ----------------------------------------------------------------------------------------
<S>                    <C>                                <C>                 <C>
     1-16681           The Laclede Group, Inc.            Missouri            74-2976504
                       720 Olive Street
                       St. Louis, MO 63101
                       314-342-0500
     ----------------------------------------------------------------------------------------
     1-1822            Laclede Gas Company                Missouri            43-0368139
                       720 Olive Street
                       St. Louis, MO 63101
                       314-342-0500
     ----------------------------------------------------------------------------------------
</TABLE>


Indicate by check mark whether the registrant:

(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such report),

         The Laclede Group, Inc.:                 Yes  X            No
                                                       ----             ----

         Laclede Gas Company:                     Yes  X            No
                                                       ----             ----

and (2) has been subject to such filing requirements for the past 90 days:

         The Laclede Group, Inc.:                 Yes  X            No
                                                       ----             ----

         Laclede Gas Company:                     Yes  X            No
                                                       ----             ----

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act):

         The Laclede Group, Inc.                  Yes  X            No
                                                       ----             ----

         Laclede Gas Company:                     Yes               No  X
                                                       ----             ----


Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date:

<TABLE>
<CAPTION>
                                                                     Shares Outstanding At
Registrant                      Description of Common Stock             April 25, 2003
----------                      ---------------------------             --------------
<S>                             <C>                                     <C>
The Laclede Group, Inc.         Common Stock ($1.00 Par Value)            19,041,773
Laclede Gas Company             Common Stock ($1.00 Par Value)                   100  (100% owned by
                                                                                       Laclede Group)
</TABLE>

                                     1

<PAGE>
<PAGE>

<TABLE>
<CAPTION>
TABLE OF CONTENTS                                                                   Page No.
                                                                                    --------
<S>                                                                             <C>
PART I. FINANCIAL INFORMATION

Item 1   Financial Statements

         The Laclede Group, Inc.:
                  Statements of Consolidated Income                                 4
                  Statements of Consolidated Comprehensive Income                   5
                  Consolidated Balance Sheets                                       6-7
                  Statements of Consolidated Cash Flows                             8
                  Notes to Consolidated Financial Statements                        9-15

         Laclede Gas Company:
                  Statements of Income                                          Ex. 99.1, p. 1
                  Balance Sheets                                                Ex. 99.1, p. 2-3
                  Statements of Cash Flows                                      Ex. 99.1, p. 4
                  Notes to Financial Statements                                 Ex. 99.1, p. 5-9


Item 2   Management's Discussion and Analysis of Financial Condition and
                  Results of Operations (The Laclede Group, Inc.)                   16-23
         Management's Discussion and Analysis of Financial Condition and
                  Results of Operations (Laclede Gas Company)                   Ex. 99.1, p. 10-17

Item 3   Quantitative and Qualitative Disclosures About Market Risk                 24

Item 4   Controls and Procedures                                                    24

PART II. OTHER INFORMATION

Item 1   Legal Proceedings                                                          25

Item 4   Submission of Matters to a Vote of Security Holders                        25

Item 6   Exhibits and Other Reports on Form 8-K                                     25

SIGNATURES - The Laclede Group, Inc.                                                26

CERTIFICATIONS - The Laclede Group, Inc.                                            27-28

SIGNATURES - Laclede Gas Company                                                    29

CERTIFICATIONS - Laclede Gas Company                                                30-31

INDEX TO EXHIBITS                                                                   32
</TABLE>

Filing Format
-------------
This Quarterly Report on Form 10-Q is a combined report being filed by two
separate registrants: The Laclede Group, Inc. (Laclede Group or the Company)
and Laclede Gas Company (Laclede Gas or the Utility).

Effective October 1, 2001, Laclede Gas and its subsidiaries became
subsidiaries of The Laclede Group. At that time stock certificates
previously representing shares of Laclede Gas common stock were deemed to
represent the same number of shares of The Laclede Group common stock. All
of the former subsidiaries of Laclede Gas (Laclede Investment LLC, Laclede
Energy Resources, Inc., Laclede Gas Family Services, Inc., Laclede
Development Company, Laclede Venture Corp. and Laclede Pipeline Company) are
now subsidiaries of Laclede Group.



                                     2

<PAGE>
<PAGE>

                                   PART I
                            FINANCIAL INFORMATION

The interim financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. These financial statements should be
read in conjunction with the financial statements and the notes thereto
included in the Company's Form 10-K for the year ended September 30, 2002.


                                     3

<PAGE>
<PAGE>

Item 1. Financial Statements

<TABLE>
                                            THE LACLEDE GROUP, INC.
                                       STATEMENTS OF CONSOLIDATED INCOME
                                                  (UNAUDITED)

(Thousands, Except Per Share Amounts)

<CAPTION>
                                                            Three Months Ended            Six Months Ended
                                                                March 31,                    March 31,
                                                           2003           2002          2003           2002
                                                           ----           ----          ----           ----
<S>                                                     <C>            <C>           <C>            <C>
Operating Revenues:
  Regulated
    Gas distribution                                     $357,456       $256,802      $574,621       $440,013
  Non-Regulated
    Services                                               17,315         15,274        48,138         15,274
    Other                                                  47,408         15,387        79,591         26,820
                                                   -----------------------------------------------------------
      Total Operating Revenues                            422,179        287,463       702,350        482,107
                                                   -----------------------------------------------------------

Operating Expenses:
  Regulated
    Natural and propane gas                               247,918        156,115       381,761        271,709
    Other operation expenses                               29,663         28,804        60,987         55,080
    Maintenance                                             4,950          4,318         9,394          8,632
    Depreciation and amortization                           5,596          6,053        11,089         12,635
    Taxes, other than income taxes                         22,579         18,437        36,707         31,336
                                                   -----------------------------------------------------------
      Total regulated operating expenses                  310,706        213,727       499,938        379,392
  Non-Regulated
    Services                                               22,735         18,180        53,360         18,180
    Other                                                  45,850         15,097        76,931         26,760
                                                   -----------------------------------------------------------
      Total Operating Expenses                            379,291        247,004       630,229        424,332
                                                   -----------------------------------------------------------
Operating Income                                           42,888         40,459        72,121         57,775
Other Income and Income Deductions - Net                     (591)          (175)          457            749
                                                   -----------------------------------------------------------
Income Before Interest and Income Taxes                    42,297         40,284        72,578         58,524
                                                   -----------------------------------------------------------

Interest Charges:
  Interest on long-term debt                                5,205          5,205        10,410         10,410
  Preferred dividends and distributions of
    subsidiary trust                                          867              -         1,011              -
  Other interest charges                                      953          1,380         2,302          2,739
                                                   -----------------------------------------------------------
      Total Interest Charges                                7,025          6,585        13,723         13,149
                                                   -----------------------------------------------------------
Income Before Income Taxes                                 35,272         33,699        58,855         45,375
Income Tax Expense                                         13,687         12,946        22,159         16,882
Dividends on Redeemable Preferred Stock -
  Laclede Gas                                                  15             15            31             36
                                                   -----------------------------------------------------------
Net Income Applicable to Common Stock                    $ 21,570       $ 20,738      $ 36,665       $ 28,457
                                                   ===========================================================

Average Number of Common Shares
  Outstanding                                              19,002         18,878        18,981         18,878

Basic and Diluted Earnings Per Share of
  Common Stock                                              $1.14          $1.10         $1.93          $1.51

Dividends Declared Per Share of Common
  Stock                                                     $.335          $.335          $.67           $.67

See notes to consolidated financial statements.
</TABLE>


                                     4

<PAGE>
<PAGE>

<TABLE>
                                         THE LACLEDE GROUP, INC.
                             STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
                                               (UNAUDITED)

(Thousands)

<CAPTION>
                                                        Three Months Ended           Six Months Ended
                                                            March 31,                    March 31,
                                                        2003         2002            2003         2002
                                                        ----         ----            ----         ----
<S>                                                  <C>          <C>             <C>          <C>
Net Income                                            $ 21,570     $ 20,738        $ 36,665     $ 28,457
                                                ---------------------------------------------------------
Other Comprehensive Income:
  Net gains on cash flow hedging
    derivative instruments:
    Net hedging gains arising
      during the period                                    260            -             260            -
                                                ---------------------------------------------------------
Other Comprehensive Income,
  Before Tax                                               260            -             260            -
Income Tax Expense Related to
  Items of Other Comprehensive
    Income                                                 101            -             101            -
                                                ---------------------------------------------------------
Other Comprehensive Income, Net of Tax                     159            -             159            -
                                                ---------------------------------------------------------
Comprehensive Income                                  $ 21,729     $ 20,738        $ 36,824     $ 28,457
                                                =========================================================
</TABLE>


                                     5

<PAGE>
<PAGE>

<TABLE>
                                        THE LACLEDE GROUP, INC.
                                      CONSOLIDATED BALANCE SHEETS


<CAPTION>
                                                                            Mar. 31           Sept. 30
                                                                              2003              2002
                                                                              ----              ----
                                                                                   (Thousands)

                                                                           (UNAUDITED)
<S>                                                                        <C>              <C>
                        ASSETS
Utility Plant                                                              $1,007,958       $  988,747
  Less: Accumulated depreciation and amortization                             402,357          394,371
                                                                        ------------------------------
      Net Utility Plant                                                       605,601          594,376
                                                                        ------------------------------
Goodwill                                                                       28,124           27,455
                                                                        ------------------------------
Other Property and Investments                                                 44,859           46,986
                                                                        ------------------------------

Current Assets:
  Cash and cash equivalents                                                    34,527           12,870
  Accounts receivable                                                         162,233           94,010
    Less: Allowances for doubtful accounts                                     (5,728)          (4,532)
  Materials, supplies, and merchandise at avg. cost                             4,263            4,364
  Natural gas stored underground at LIFO cost                                  24,469           77,121
  Propane gas at FIFO cost                                                     10,128           14,712
  Delayed customer billings                                                    33,682                -
  Deferred income taxes                                                         8,417           12,305
  Prepayments and other                                                        11,601           11,505
                                                                        ------------------------------
      Total Current Assets                                                    283,592          222,355
                                                                        ------------------------------

Deferred Charges:
  Prepaid pension cost                                                        111,879          114,313
  Regulatory assets                                                            74,929           72,484
  Other                                                                         5,649            3,904
                                                                        ------------------------------
      Total deferred charges                                                  192,457          190,701
                                                                        ------------------------------
Total Assets                                                               $1,154,633       $1,081,873
                                                                        ==============================



See notes to consolidated financial statements.
</TABLE>


                                     6

<PAGE>
<PAGE>

<TABLE>
                                         THE LACLEDE GROUP, INC.
                                 CONSOLIDATED BALANCE SHEETS (Continued)

<CAPTION>
                                                                            Mar. 31           Sept. 30
                                                                              2003              2002
                                                                              ----              ----
                                                                        (Thousands, except share amounts)

                                                                           (UNAUDITED)
<S>                                                                        <C>             <C>
                 CAPITALIZATION AND LIABILITIES
Capitalization:
  Common stock (50,000,000 shares authorized, 19,003,633 and
    18,921,289 shares issued, respectively)                                $   19,004      $   18,921
  Paid-in capital                                                              66,558          64,667
  Retained earnings                                                           226,463         202,517
  Accumulated other comprehensive loss                                           (180)           (339)
                                                                         -----------------------------
    Total common stock equity                                                 311,845         285,766
  Redeemable preferred stock - Laclede Gas                                      1,258           1,266
  Obligated mandatorily redeemable preferred securities
    of subsidiary trust                                                        45,000               -
  Long-term debt (less sinking fund requirements) - Laclede Gas               259,588         259,545
                                                                         -----------------------------
    Total Capitalization                                                      617,691         546,577
                                                                         -----------------------------

Current Liabilities:
  Notes payable                                                               122,390         161,670
  Accounts payable                                                             98,934          45,707
  Advance customer billings                                                         -          24,832
  Current portion of long-term debt                                            25,000          25,000
  Taxes accrued                                                                25,667           9,815
  Unamortized purchased gas adjustment                                          9,524          22,976
  Other                                                                        46,509          46,797
                                                                         -----------------------------
    Total Current Liabilities                                                 328,024         336,797
                                                                         -----------------------------

Deferred Credits and Other Liabilities:
  Deferred income taxes                                                       159,148         157,378
  Unamortized investment tax credits                                            5,472           5,629
  Pension and postretirement benefit costs                                     18,511          14,658
  Other                                                                        25,787          20,834
                                                                         -----------------------------
    Total Deferred Credits and Other Liabilities                              208,918         198,499
                                                                         -----------------------------
Total Capitalization and Liabilities                                       $1,154,633      $1,081,873
                                                                         =============================

See notes to consolidated financial statements.
</TABLE>


                                     7

<PAGE>
<PAGE>

<TABLE>
                                        THE LACLEDE GROUP, INC.
                                 STATEMENTS OF CONSOLIDATED CASH FLOWS
                                              (UNAUDITED)


<CAPTION>
                                                                                Six Months Ended
                                                                                    March 31,
                                                                               2003          2002
                                                                               ----          ----
                                                                                   (Thousands)
<S>                                                                          <C>          <C>
Operating Activities:
  Net Income Applicable to Common Stock                                      $ 36,665     $ 28,457
  Adjustments to reconcile net income
   to net cash provided by (used in) operating activities:
    Depreciation and amortization                                              12,788       13,153
    Deferred income taxes and investment
     tax credits                                                                2,783      (14,341)
    Dividends on redeemable preferred stock - Laclede Gas                          31           36
    Other - net                                                                (1,322)         393
    Changes in assets and liabilities:
      Accounts receivable - net                                               (67,027)     (35,681)
      Unamortized purchased gas adjustments                                   (13,452)      (6,305)
      Deferred purchased gas costs                                              5,992       48,197
      Advance customer billings - net                                         (58,514)     (24,481)
      Accounts payable                                                         53,227        4,832
      Taxes accrued                                                            15,852       15,040
      Natural gas stored underground                                           52,652       56,452
      Other assets and liabilities                                              9,981          318
                                                                          -------------------------
          Net cash provided by operating activities                          $ 49,656     $ 86,070
                                                                          -------------------------

Investing Activities:
  Construction expenditures                                                   (22,859)     (22,727)
  Employee benefit trusts                                                        (507)         125
  Acquisition of SM&P, net of cash and cash equivalents                             -      (38,044)
  Other investments                                                               403       (1,329)
                                                                          -------------------------
          Net cash used in investing activities                              $(22,963)    $(61,975)
                                                                          -------------------------

Financing Activities:
  Issuance (repayment) of short-term debt - net                               (39,280)       1,350
  Dividends paid                                                              (12,722)     (12,685)
  Issuance of common stock                                                      1,974            -
  Issuance of obligated mandatorily redeemable preferred
   securities of subsidiary trust                                              45,000            -
  Preferred stock reacquired and other                                             (8)        (395)
                                                                          -------------------------
          Net cash used in financing activities                              $ (5,036)    $(11,730)
                                                                          -------------------------

Net Increase in Cash and Cash Equivalents                                    $ 21,657     $ 12,365
Cash and Cash Equivalents at Beg of Period                                     12,870        3,223
                                                                          -------------------------
Cash and Cash Equivalents at End of Period                                   $ 34,527     $ 15,588
                                                                          =========================

Supplemental Disclosure of Cash Paid
 During the Period for:
    Interest                                                                 $ 13,766     $ 10,863
    Income taxes                                                                  246       12,634

See notes to consolidated financial statements.
</TABLE>

                                     8

<PAGE>
<PAGE>

                           THE LACLEDE GROUP, INC.
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.)      These notes are an integral part of the accompanying consolidated
         financial statements of The Laclede Group, Inc. (Laclede Group or
         the Company) and its subsidiaries. In the opinion of Laclede Group,
         this interim report includes all adjustments (consisting of normal
         recurring accruals) necessary for the fair presentation of the
         results of operations for the periods presented. Certain
         prior-period amounts have been reclassified to conform to
         current-period presentation. This Form 10-Q should be read in
         conjunction with the Notes to Financial Statements contained in the
         Company's Fiscal 2002 Form 10-K.

2.)      On December 16, 2002, Laclede Capital Trust I (Trust), a wholly
         owned Delaware Statutory trust of Laclede Group, issued $45 million
         of 7.70% Trust Preferred Securities with a liquidation value of $25
         per share due December 1, 2032. These securities can be redeemed on
         or after December 16, 2007. All of the proceeds from the sale of
         the Trust Preferred Securities were invested by the Trust in
         debentures of Laclede Group with the same economic terms as the
         Trust Preferred Securities. Net proceeds of approximately $43.3
         million from the sale of these debentures were used to repay the
         $42.8 million bank note obtained in January, 2002 to fund the
         acquisition of SM&P and for other general corporate purposes.

         The Trust Preferred Securities sold by the Trust represent
         preferred beneficial interests and 97% beneficial ownership in the
         assets held by the Trust. In exchange for the funds realized from
         the sale of the Trust Preferred Securities and Trust common
         securities representing 3% beneficial ownership interest in the
         assets held by the Trust, Laclede Group issued $46.4 million of
         junior subordinated debt instruments that constitute 100% of the
         assets of the Trust.

         The Trust Preferred Securities are rated A- (stable outlook) by
         Standard & Poor's Ratings Group (S&P), Baa3 (stable outlook) by
         Moody's Investors Service, Inc. and BBB+ (negative outlook) by
         Fitch Ratings. S&P, Moody's and Fitch will continue to monitor the
         ratings of the Trust Preferred Securities, as well as our other
         credit ratings, and will make future adjustments to the extent
         warranted.

3.)      On October 3, 2002, the Missouri Public Service Commission (MoPSC
         or the Commission) approved a settlement reached among the parties
         to the 2002 rate case, filed by Laclede Gas Company (Laclede Gas or
         the Utility) on January 25, 2002. The terms of the settlement
         included (1) an annual rate increase of $14 million effective on
         November 9, 2002; (2) a moratorium on additional rate filings until
         March 1, 2004; and (3) an innovative rate design that is expected
         to provide the Utility with the ability to recover its distribution
         costs, which are essentially fixed, in a manner that is
         significantly less sensitive to weather. The settlement also
         provided for, among other things, changes resulting in negative
         amortization of the depreciation reserve of $3.4 million annually
         effective from July 1, 2002 until the Utility's next rate case
         proceeding, minor changes in depreciation rates effective January
         1, 2003, and changes in the regulatory treatment of pension costs
         primarily designed to stabilize such costs, effective during fiscal
         2003. Also approved was an incentive program beginning in fiscal
         2003 under which the Utility may achieve, under specific
         conditions, income related to management of its gas supply
         commodity costs. Previously deferred costs of $.3 million are being
         recovered and amortized on a straight-line basis over a ten-year
         period, without return on investment, effective with implementation
         of the new rates, in addition to certain amounts authorized
         previously.

4.)      On January 28, 2002, Laclede Group completed its acquisition from
         NiSource, Inc. of 100% of the stock of SM&P Utility Resources, Inc.
         (SM&P), one of the nation's major underground locating and marking
         service businesses. SM&P, a Carmel, Indiana-based company, operates
         in the midwestern states. Locators mark the placement of
         underground facilities for major providers of telephone, natural
         gas, electric, water, cable TV and fiber optic services so that
         construction work can be performed without damaging buried
         facilities. As a result of the acquisition, SM&P's earnings flow is
         expected to diversify Laclede Group's earnings and be
         counter-seasonal to those of Laclede Gas. SM&P is a subsidiary of
         Laclede Group and remains headquartered in Indiana. This
         acquisition was financed initially with conventional bank debt
         totaling $42.8 million, that was refinanced through the issuance of
         Laclede Capital Trust Preferred Securities on December 16, 2002.

         The following table summarizes the fair values of the assets
         acquired and liabilities assumed at the date of acquisition. The
         goodwill recognized in this transaction is fully deductible for tax
         purposes. Acquired intangible assets of $498,000 were assigned to
         registered trademarks that are not subject to amortization. Net
         assets acquired includes cash and cash equivalents of $5.1 million.


                                     9

<PAGE>
<PAGE>

<TABLE>
<CAPTION>
                                                             At January 28, 2002
                                                             -------------------
                                                                 (Thousands)
<S>                                                                <C>
         Current assets                                            $20,578
         Property, plant, and equipment                              7,457
         Other assets                                                  456
         Intangible assets                                             498
         Goodwill                                                   28,124
                                                                   -------
              Total assets acquired                                $57,113
                                                                   -------

         Current liabilities                                       $13,571
         Long-term liabilities                                         404
                                                                   -------
              Total liabilities assumed                            $13,975
                                                                   -------

              Net assets acquired                                  $43,138
                                                                   =======
</TABLE>

         The fair values of assets acquired and liabilities assumed at the
         date of acquisition were adjusted to final valuation amounts during
         the quarter ended March 31, 2003, resulting in an increase to
         goodwill amounting to $662,000.

         SM&P's earnings are impacted by construction trends. SM&P's
         revenues are dependent on a limited number of customers, primarily
         in the utility and telecommunications sector, with contracts that
         may be terminated on as short as 30 days' notice. For more
         information, see Note 10 on page 13.

5.)      The consolidated financial position, results of operations and cash
         flows of Laclede Group are comprised primarily from the
         consolidated financial position, results of operations and cash
         flows of Laclede Gas. Laclede Gas is a natural gas distribution
         utility having a material seasonal cycle. As a result, these
         interim statements of income for Laclede Group are not necessarily
         indicative of annual results or representative of succeeding
         quarters of the fiscal year. Due to the seasonal nature of the
         business of Laclede Gas, earnings are typically concentrated in the
         November through April period, which generally corresponds with the
         heating season. The Utility typically experiences losses during the
         non-heating season. This seasonal effect on Laclede Group is
         expected to be tempered somewhat by the impact of the weather
         mitigation rate design implemented in November 2002 and the
         addition of SM&P, whose operations tend to be counter-seasonal to
         those of Laclede Gas.

6.)      Net provision (benefit) for income taxes was as follows during the
         periods set forth below:

<TABLE>
<CAPTION>
                                 Three Months Ended      Six Months Ended
                                      March 31,             March 31,
                                 ------------------      ----------------
                                  2003        2002        2003       2002
                                  ----        ----        ----       ----
                                                (Thousands)
<S>                             <C>         <C>         <C>        <C>
        Federal
          Current               $11,462     $ 3,623     $16,565    $ 26,611
          Deferred                  161       7,311       2,308     (12,347)
        State and Local
          Current                 1,990         736       2,811       4,611
          Deferred                   74       1,276         475      (1,993)
                             -----------------------------------------------
              Total             $13,687     $12,946     $22,159    $ 16,882
                             ===============================================
</TABLE>

7.)      Under the Gas Supply Incentive Plan (GSIP) of Laclede Gas, the
         Utility shared with its customers certain gains and losses related
         to the acquisition and management of its gas supply assets. The
         provisions of the GSIP extended through September 30, 2001. In
         September 2001, the MoPSC ruled that the GSIP should be allowed to
         expire. The Utility requested clarification and rehearing. On
         February 19, 2002, the MoPSC denied the Utility's application for
         rehearing. Laclede Gas filed a petition for judicial review of the

                                     10

<PAGE>
<PAGE>
         MoPSC's decision with the Cole County Circuit Court, together with
         a motion requesting that the MoPSC's decision be stayed. The
         request for stay was denied on May 13, 2002. On April 3, 2003, the
         Cole County Circuit Court issued its Order and Judgment affirming
         the MoPSC's decision to terminate the GSIP. The Company is
         currently reviewing whether to seek further judicial review of the
         MoPSC's decision. However, pursuant to the 2001 rate case
         settlement, the MoPSC authorized Laclede Gas to retain all income
         from releases of pipeline capacity effective December 1, 2001.
         Income from releases of pipeline capacity was previously shared
         with customers under the terms of the GSIP. Laclede Gas will
         continue to retain all income resulting from sales outside of its
         traditional service area, as previously authorized by the
         Commission. Income related to releases of pipeline capacity and
         sales made outside its traditional service area are volatile in
         nature and subject to market conditions.

<TABLE>
<CAPTION>
                                                           Three Months Ended           Six Months Ended
                                                                March 31,                   March 31,
                                                          -------------------          ------------------
                                                            2003        2002            2003        2002
                                                            ----        ----            ----        ----
                                                                           (Thousands)
<S>                                                       <C>         <C>             <C>         <C>
         Pre-Tax Income - Capacity Release                 $  702      $  411          $1,315      $  580
         Pre-Tax Income - Off System Sales                  5,085       1,954           6,715       3,103
                                                          -----------------------------------------------
         Total Pre-Tax Income                              $5,787      $2,365          $8,030      $3,683
                                                          ===============================================
</TABLE>

8.)      In the course of its business, Laclede Group's non-regulated
         marketing affiliate, Laclede Energy Resources, Inc. (LER), enters
         into fixed price commitments for the sale of natural gas to
         customers. LER manages the price risk associated with these sales
         by either closely matching the purchases of physical supplies at
         fixed prices or through the use of exchange-traded futures
         contracts to lock in margins. At March 31, 2003, LER's open
         positions were not material to Laclede Group's financial position
         or results of operations. At that same date, LER had settled
         futures contracts covering .4 million MmBtu of natural gas for
         April 2003, and long (purchased) futures contracts covering .4
         million MmBtu of natural gas at an average price of $4.97 per
         MmBtu, extending through March 2004. These futures contracts are
         derivative instruments and management has designated these items as
         cash flow hedges of forecasted transactions. The fair values of the
         instruments are recognized on the Consolidated Balance Sheets. The
         change in the fair value of the effective portion of these hedge
         instruments is recorded, net of tax, in Other Comprehensive Income,
         a component of Common Stock Equity. These amounts will reduce or be
         charged to Non-Regulated Other Operating Revenues or Expenses in
         the Statements of Consolidated Income as the transactions occur. It
         is estimated that $.2 million of the net unrealized gains on cash
         flow hedging derivative instruments at March 31, 2003 will be
         reclassified into the Consolidated Statement of Income during
         fiscal 2003. The ineffective portions of these hedge instruments
         were immaterial for the periods presented, and such amounts are
         charged to Non-Regulated Other Operating Revenues or Expenses. Cash
         flows from hedging transactions are classified in the same category
         as the cash flows from the items that are being hedged in the
         Statements of Consolidated Cash Flows.


9.)      The Laclede Group Equity Plan was approved at the annual meeting of
         shareholders of Laclede Group on January 30, 2003. The purpose of
         the Equity Plan is to provide a more competitive compensation
         program and to attract and retain those executive and other key
         employees essential to achieve the Company's strategic objectives.
         To accomplish this purpose, the compensation committee may grant
         awards under the Equity Plan that may be earned by achieving
         performance objectives and/or other criteria as determined by the
         compensation committee. Under the terms of the Equity Plan, key
         employees of the Company and its subsidiaries, as determined in the
         sole discretion of the administrator, will be eligible to receive
         (a) restricted shares of common stock, (b) performance awards, (c)
         stock options exercisable into shares of common stock, (d) stock
         appreciation rights, and (e) stock units, as well as any other
         stock-based awards not inconsistent with the Equity Plan. Each
         award under the Equity Plan shall have a minimum vesting period of
         at least one year. The total number of shares that may be issued
         pursuant to awards under the Equity Plan may not exceed 1,250,000.

         During the quarter ended March 31, 2003, the Company granted
         221,500 non-qualified stock options to employees at an exercise
         price of $23.27 per share. No option can be exercised before
         February 6, 2004. The stock options vest one-fourth each year for
         four years after the date of the grant and expire on the tenth
         anniversary of the grant date. The Company accounts for the Equity
         Plan under the recognition and


                                     11

<PAGE>
<PAGE>

         measurement principles of Accounting Principles Board Opinion No.
         25, "Accounting for Stock Issued to Employees", and related
         Interpretations. No compensation expense has been recognized in net
         income, as all options granted under the Equity Plan had an
         exercise price equal to the market value of the Company's stock on
         the date of the grant.

<TABLE>
<CAPTION>
                                                                             Weighted Average
                                                          Shares              Exercise Price
                                                        ----------          ------------------
<S>                                                     <C>                      <C>
         Outstanding at December 31, 2002                       -

         Granted                                          221,500                   $23.27
         Exercised                                              -
         Forfeited                                              -

         Outstanding at March 31, 2003                    221,500                   $23.27

         Exercisable at March 31, 2003                          -
</TABLE>

         The closing price of the Company's common stock was $23.20 at March
         31, 2003.

         If compensation expense had been determined based on the fair value
         recognition provisions of SFAS 123, Accounting for Stock-Based
         Compensation, the Company's net income and earnings per share would
         have been reduced to the amounts shown in the following table. The
         weighted-average fair value of options granted during 2003 is $4.33
         per option. The estimated fair value of options is amortized to
         expense over the options' vesting period.

<TABLE>
<CAPTION>
                                                            Three Months Ended             Six Months Ended
                                                                 March 31,                     March 31,
                                                         -----------------------        ----------------------
                                                           2003            2002           2003           2002
                                                           ----            ----           ----           ----
                                                                              (Thousands)
<S>                                                      <C>             <C>            <C>            <C>
         Net income, as reported                         $21,570         $20,738        $36,665        $28,457

         Deduct: Total stock-based employee
           compensation expense determined
           under the fair value based method
           for all awards, net of tax effects                (25)              -            (25)             -
                                                    -----------------------------------------------------------

         Pro forma net income                            $21,545         $20,738        $36,640        $28,457
                                                    ===========================================================

         Earnings per share:
         Basic and Diluted - as reported                   $1.14           $1.10          $1.93          $1.51
         Basic and Diluted - pro forma                     $1.13           $1.10          $1.93          $1.51
</TABLE>


         The fair value of the options was estimated at the date of grant
         using the Black-Scholes option pricing model with the following
         weighted-average assumptions:

<TABLE>
<CAPTION>
                                                                   2003          2002
                                                         ------------------------------------
<S>                                                             <C>         <C>
         Risk free interest rate                                    4.00%   Not Applicable
         Expected dividend yield of stock                           5.70%   Not Applicable
         Expected volatility of stock                              25.00%   Not Applicable
         Expected life of option                                96 months   Not Applicable
</TABLE>

                                     12

<PAGE>
<PAGE>

10.)     The Regulated Gas Distribution segment consists of the regulated
         operations of Laclede Gas and is the core business segment of
         Laclede Group. Laclede Gas is a public utility engaged in the
         retail distribution of natural gas serving an area in eastern
         Missouri, with a population of approximately 2.0 million, including
         the City of St. Louis, St. Louis County, and parts of eight other
         counties. The Non-Regulated Services segment includes the results
         of SM&P, an underground locating and marking business operating in
         the midwestern states, a wholly owned subsidiary of Laclede Group
         acquired on January 28, 2002. Non-Regulated Other includes the
         transportation of liquid propane, gas marketing, the sale of
         insurance related products, real estate development, the
         compression of natural gas, and financial investments in other
         enterprises. These operations are conducted through seven wholly
         owned subsidiaries, six of which became subsidiaries of Laclede
         Group as a result of the restructuring on October 1, 2001, plus
         Laclede Energy Services, Inc. (LES), a wholly owned subsidiary of
         Laclede Group that became operational on May 1, 2002. LES performs
         administrative gas supply and risk management services. The results
         of SM&P's operations since January 28, 2002 and the results of LES'
         operations since May 1, 2002 are included in Laclede Group's
         Consolidated Financial Statements. There are no material
         intersegment revenues.

<TABLE>
<CAPTION>
                                         Regulated
                                            Gas        Non-Regulated   Non-Regulated
         (Thousands)                   Distribution      Services          Other       Eliminations    Consolidated
         ----------------------------------------------------------------------------------------------------------
<S>                                     <C>              <C>             <C>             <C>            <C>
         Three Months Ended
         March 31, 2003
         --------------
         Operating revenues             $  357,456       $ 17,315        $ 47,408        $      -       $  422,179
         Net income (loss)                  24,874         (4,271)            967               -           21,570
         Total assets                    1,057,345         54,200          61,900         (18,812)       1,154,633

         Six Months Ended
         March 31, 2003
         --------------
         Operating revenues             $  574,621       $ 48,138        $ 79,591        $      -       $  702,350
         Net income (loss)                  39,447         (4,433)          1,651               -           36,665
         Total assets                    1,057,345         54,200          61,900         (18,812)       1,154,633

         Three Months Ended
         March 31, 2002
         --------------
         Operating revenues             $  256,802       $ 15,274        $ 15,387        $      -       $  287,463
         Net income (loss)                  22,572         (2,033)            199               -           20,738
         Total assets                      973,795         53,537          32,985         (11,160)       1,049,157

         Six Months Ended
         March 31, 2002
         --------------
         Operating revenues             $  440,013       $ 15,274        $ 26,820        $      -       $  482,107
         Net income (loss)                  30,410         (2,033)             80               -           28,457
         Total assets                      973,795         53,537          32,985         (11,160)       1,049,157
</TABLE>

         In November 2002, two customers notified SM&P that, due to actions
         they have taken to address workforce management issues, they did
         not intend to continue to outsource certain functions, which
         include locating services provided by SM&P, after February and
         March 2003. One of these customers notified SM&P in January 2003
         that it will continue to outsource a portion of its locating
         services provided by SM&P beyond that timeframe. Revenue from these
         customers totaled approximately $45 million for fiscal 2002 and is
         currently expected to total approximately $27 million for fiscal
         2003. In connection with the reduction in work from these
         customers, SM&P made reductions in the required levels of
         personnel, facilities and equipment. Management continues to
         estimate that the total cost of these reductions will result in an
         after-tax charge of approximately $1 million, all of which was
         expensed during the quarter ended March 31, 2003.

11.)     Laclede Gas is subject to various environmental laws and
         regulations that, to date, have not materially affected the
         Company's financial position and results of operations. As these
         laws, regulations, and their interpretation evolve, however,
         additional costs may be incurred.

                                     13

<PAGE>
<PAGE>

         With regard to a former manufactured gas plant site located in
         Shrewsbury, Missouri, Laclede Gas and state and federal
         environmental regulators have agreed upon certain actions and those
         actions are nearing completion. Laclede Gas currently estimates the
         overall costs of these actions will be approximately $2.3 million.
         As of March 31, 2003, Laclede Gas has paid or reserved for these
         actions. If regulators require additional actions or assert
         additional claims, Laclede Gas will incur additional costs.

         Laclede Gas enrolled a second former manufactured gas plant site
         into the Missouri Voluntary Cleanup Program (VCP). The VCP provides
         opportunities to minimize the scope and cost of site cleanup while
         maximizing possibilities for site development. This site is located
         in and is presently owned by the City of St. Louis, Missouri. The
         City of St. Louis has separately authorized a developer to prepare
         both a Remedial Action Plan (RAP), for submission to the VCP, and a
         site development plan. Laclede Gas continues to explore with the
         developer what role, if any, it might play in these efforts.
         Laclede Gas continues to evaluate other options as well, including,
         but not limited to, the submission of its own RAP to the VCP.
         Laclede Gas currently estimates that the cost of site
         investigations, agency oversight and related legal and engineering
         consulting may be approximately $629,000. Currently, Laclede Gas
         has paid or reserved for these actions. Laclede has requested that
         other former site owners and operators share in these costs and one
         party has agreed to participate and has reimbursed Laclede Gas to
         date for $173,000. Laclede Gas anticipates additional reimbursement
         from this party. Laclede Gas plans to seek proportionate
         reimbursement of all costs relative to this site from other
         potentially responsible parties if practicable.

         Costs incurred are charged to expense or capitalized in accordance
         with generally accepted accounting principles. A predetermined
         level of expense is included in Laclede Gas' rates.

         Laclede Gas has been advised that a third former manufactured gas
         plant site previously operated but no longer owned by Laclede Gas
         may contain gas plant waste that may require remediation. Laclede
         Gas is working to determine the nature and extent of such waste, if
         any, and its responsibility, if any, for any remediation costs.

         While the scope of costs relative to the Shrewsbury site will not
         be significant, the scope of costs relative to the other sites is
         unknown and may be material. Laclede Gas has notified its insurers
         that it seeks reimbursement of its costs at these three
         manufactured gas plant sites. In response, the majority of insurers
         have reserved their rights. While some of the insurers have denied
         coverage, Laclede Gas continues to seek reimbursement from them.
         With regard to the Shrewsbury site, denials of coverage are not
         expected to have any material impact on the financial position and
         results of operations of Laclede Gas. With regard to the other two
         sites, since the scope of costs are unknown and may be significant,
         denials of coverage may have a material impact on the financial
         position and results of operations of Laclede Gas. Such costs, if
         incurred, have typically been subject to recovery in rates.

12.)     On June 28, 2002, the Staff of the MoPSC filed its recommendation
         in a proceeding established to review Laclede Gas' gas costs for
         fiscal 2001. In its recommendation, the Staff proposed to disallow
         approximately $4.9 million in pre-tax gains achieved by Laclede Gas
         in its incentive-based Price Stabilization Program. This Program
         was discontinued at the end of the 2001-2002 heating season.
         Laclede Gas believes that Staff's position lacks merit and has
         vigorously opposed the adjustment in proceedings before the MoPSC,
         including a formal hearing that was held on this matter in February
         2003. Final briefs relating to this matter were filed with the
         Commission in April 2003. Regulatory proceeding results are,
         however, inherently uncertain, and to the extent that a final
         Commission decision sustains Staff's recommended disallowance, the
         proceeding's outcome could have a material effect on the future
         financial position and results of operations of Laclede Gas.
         Missouri statutes provide an opportunity for court review of
         Commission decisions.

13.)     In June 2001, the FASB issued SFAS No. 141, "Business
         Combinations," which requires all business combinations in the
         scope of this Statement to be accounted for using the purchase
         method. The provisions of this Statement apply to all business
         combinations initiated after June 30, 2001. The FASB also issued
         SFAS No. 142, "Goodwill and Other Intangible Assets", which
         addresses how acquired goodwill and other intangible assets that
         are acquired individually or with a group of other assets should be
         accounted for in financial statements upon acquisition and after
         they have been initially recognized in the financial statements.
         The Company adopted the provisions of SFAS No. 141 with the
         acquisition of SM&P. As required by SFAS No. 141, the goodwill for
         SM&P is being accounted for consistent with the provisions of SFAS
         No. 142. The complete adoption of SFAS Nos. 141 and 142 on October
         1, 2002 did not have a material effect on the financial position
         and results of operations of Laclede Group.

                                     14

<PAGE>
<PAGE>

         The FASB issued SFAS No. 143, "Accounting for Asset Retirement
         Obligations", which addresses financial accounting and reporting
         for obligations associated with the retirement of tangible
         long-lived assets and associated asset retirement costs. It applies
         to legal obligations associated with the retirement of long-lived
         assets that result from acquisition, construction, development
         and/or the normal operation of a long-lived asset, except for
         certain obligations of lessees. The provisions of the Statement
         provide for rate-regulated entities that meet the criteria for
         application of SFAS No. 71, such as Laclede Gas, to recognize
         regulatory assets or liabilities for differences in the timing of
         recognition of the period costs associated with asset retirement
         obligations for financial reporting pursuant to this Statement and
         rate-making purposes. The adoption of this Statement on October 1,
         2002 did not affect the financial position and results of
         operations of Laclede Group. There are legal obligations related to
         final abandonment of the Utility's gas distribution system.
         However, these obligations related to mass property and other
         distribution system assets generally are in perpetuity and can not
         be measured under SFAS No. 143 because of indeterminate settlement
         dates and cash flow estimates.

         SFAS No. 148, "Accounting for Stock-Based Compensation - Transition
         and Disclosure", provides alternative methods for a voluntary
         change to the fair value based method of accounting for stock-based
         compensation. In addition, this statement requires prominent
         disclosures in both annual and interim financial statements about
         the method of accounting for stock-based employee compensation and
         the method used on reported results. The disclosure provisions are
         effective for financial reports containing condensed financial
         statements for interim periods beginning after December 15, 2002.
         The required disclosures are included in this report.

         FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure
         Requirements for Guarantees, Including Indirect Guarantees of
         Indebtedness of Others", requires an entity to recognize, at the
         inception of a guarantee, a liability for the fair value of the
         obligation undertaken in issuing the guarantee. This requirement is
         to be applied on a prospective basis to guarantees issued or
         modified after December 31, 2002. This Interpretation also requires
         disclosures in interim and annual financial statements about
         obligations under certain guarantees that the entity has issued.
         These disclosure requirements are effective for financial
         statements of interim or annual periods ending after December 15,
         2002. The required disclosures are included in this report.

14.)     SM&P has several operating leases, the aggregate annual cost of
         which is approximately $6 million, consisting primarily of 12-month
         operating leases, with renewal options, for vehicles used in its
         business. Upon acquisition of SM&P, Laclede Group assumed parental
         guarantees of certain of those vehicle leases. Laclede Group
         anticipates that the maximum guarantees will not exceed $11
         million.

         Laclede Group has guarantees outstanding of $6.5 million for
         performance and payment of certain wholesale gas supply purchases
         by Laclede Energy Resources, Inc. (its non-regulated marketing
         affiliate), as of March 31, 2003.







         Laclede Gas Company's Consolidated Financial Statements and Notes
         to Consolidated Financial Statements are included in Exhibit 99.1.


                                     15

<PAGE>
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

THE LACLEDE GROUP, INC.
-----------------------

This management's discussion analyzes the financial condition and results of
operations of The Laclede Group, Inc. (Laclede Group or the Company) and its
subsidiaries. It includes management's view of factors that affect its
business, explanations of past financial results including changes in
earnings and costs from the prior year, and their effects on overall
financial condition and liquidity.

Certain matters discussed in this report, excluding historical information,
include forward-looking statements. Certain words, such as "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "seek," and similar words
and expressions identify forward-looking statements that involve
uncertainties and risks. Future developments may not be in accordance with
our expectations or beliefs and the effect of future developments may not be
those anticipated. Among the factors that may cause results to differ
materially from those contemplated in any forward-looking statement are:

o    weather conditions and catastrophic events;
o    economic, competitive, political and regulatory conditions;
o    legislative, regulatory and judicial mandates and decisions, some of
     which may be retroactive, including those affecting
     o   allowed rates of return
     o   incentive regulation
     o   industry and rate structures
     o   purchased gas adjustment provisions
     o   franchise renewals
     o   environmental or safety matters;
     o   taxes;
     o   accounting standards;
o    the results of litigation;
o    retention, ability to attract, ability to collect from and conservation
     efforts of customers;
o    capital and energy commodity market conditions including the ability to
     obtain funds for necessary capital expenditures and the terms and
     conditions imposed for obtaining sufficient gas supply; and
o    employee workforce issues.

Readers are urged to consider the risks, uncertainties and other factors
that could affect our business as described in this report. All
forward-looking statements made in this report rely upon the safe harbor
protections provided under the Private Securities Litigation Reform Act of
1995. We do not, by including this statement, assume any obligation to
review or revise any particular forward-looking statement in light of future
events.

The Management's Discussion and Analysis of Financial Condition and Results
of Operations should be read in conjunction with the Company's Consolidated
Financial Statements and the combined notes thereto.


                                     16

<PAGE>
<PAGE>

THE LACLEDE GROUP, INC.

RESULTS OF OPERATIONS

Quarter Ended March 31, 2003

Laclede Group's earnings for the quarter ended March 31, 2003 were primarily
derived from the regulated activities of its largest subsidiary, Laclede Gas
Company, Missouri's largest natural gas distribution company. Those utility
earnings are generated by the sale of heating energy, which has historically
been heavily influenced by the weather. Temperatures in Laclede Gas' service
area during the second quarter of the current fiscal year were essentially
normal, but 17% colder than the same quarter last year. While this colder
weather produced higher earnings year-to-year, the effect of weather on
earnings for the quarter ended March 31, 2003, was mitigated by the
implementation of a new rate design on November 9, 2002. This new rate
design lessens the impact of weather on the Utility's earnings and recovers
fixed costs more evenly during the heating season. This resulting shift in
the interim margin revenue pattern resulted in lower margin revenue for the
quarter ended March 31, 2003 compared with the same period last year.

Laclede Group's earnings were $1.14 per share for the quarter ended March
31, 2003 compared with $1.10 per share for the quarter ended March 31, 2002.
In addition to the impact of higher gas sales resulting from colder weather,
the earnings of Laclede Gas were also favorably affected by the general rate
increase implemented November 9, 2002 and higher income from off system
sales. These benefits were partially offset by the shift in the quarterly
margin revenue associated with the new rate design, the effect of income
recorded in the same quarter last year produced by the Utility's Price
Stabilization Program, and approximately $1 million of after-tax rightsizing
costs recorded this quarter by SM&P, a wholly owned subsidiary.

Regulated operating revenues for the quarter ended March 31, 2003 were
$357.5 million, or $100.7 million more than the same period last year. The
increase was primarily attributable to higher Purchased Gas Adjustment (PGA)
Clause rates that are passed on to Utility customers, subject to prudence
review, higher gas sales levels resulting from colder weather, increased
off-system and capacity release revenues, and the general rate increase.
System therms sold and transported increased by 54.5 million therms, or
12.9%, above the quarter ended March 31, 2002.

Laclede Group's non-regulated services operating revenues for this quarter
increased $2.0 million due primarily to the full three-month effect of
revenues this year recorded by SM&P Utility Resources, Inc. (SM&P), a wholly
owned subsidiary acquired January 28, 2002. Other non-regulated operating
revenues increased $32.0 million primarily due to increased gas marketing
sales by Laclede Energy Resources, Inc.

Regulated operating expenses for the quarter ended March 31, 2003 increased
$97.0 million from the same quarter last year. Natural and propane gas
expense increased $91.8 million above last year's level primarily
attributable to higher rates charged by our suppliers, higher volumes
purchased for sendout due to the colder weather and higher off-system gas
expense. Other operation and maintenance expenses increased $1.5 million, or
4.5%, primarily due to higher pension costs, higher group insurance charges,
increased insurance premiums and higher wage rates, partially offset by a
lower provision for uncollectible accounts and reduced distribution charges.
Depreciation and amortization expense decreased $.4 million primarily due to
the effect of negative amortization of a portion of the depreciation reserve
effective July 1, 2002, as authorized by the Missouri Public Service
Commission (MoPSC). This effect was partially offset by increased
depreciable property. Taxes, other than income, increased $4.1 million, or
22.5%, primarily due to higher gross receipts taxes (reflecting the
increased revenues).

Laclede Group's non-regulated services operating expenses increased $4.6
million this quarter primarily due to the full three-month effect this year
and rightsizing costs recorded by SM&P related to the recent loss of two
customers. Other non-regulated operating expenses increased $30.8 million
mainly due to higher expenses associated with increased gas marketing sales
by Laclede Energy Resources, Inc.

The $.4 million increase in interest charges is primarily due to the
issuance of trust preferred securities in December 2002, partially offset by
a reduction in short-term interest charges (reflecting reduced rates).

The increase in income taxes is primarily due to higher pre-tax income.

In November 2002, two customers notified SM&P that, due to actions they have
taken to address workforce management issues, they did not intend to
continue to outsource certain functions, which include locating services
provided by SM&P, after February and March 2003. One of these customers
notified SM&P in January 2003 that it will continue to outsource a portion
of its locating services provided by SM&P beyond that timeframe. Revenue
from

                                     17

<PAGE>
<PAGE>

these customers totaled approximately $45 million for fiscal 2002 and is
currently expected to total approximately $27 million for fiscal 2003. In
connection with the reduction in work from these customers, SM&P made
reductions in the required levels of personnel, facilities and equipment.
Management continues to estimate that the total cost of these reductions
will result in an after-tax charge of approximately $1 million, all of which
was expensed during the quarter ended March 31, 2003.


Six Months Ended March 31, 2003
-------------------------------

Due to the seasonal nature of Laclede Gas' business, earnings are typically
concentrated in the November through April period, which generally
corresponds with the heating season. The Utility typically experiences
losses during the non-heating season. This seasonal effect on Laclede Group
is expected to be tempered somewhat by the impact of the weather mitigation
rate design implemented in November 2002 and the acquisition of SM&P on
January 28, 2002, whose operations tend to be counter-seasonal to those of
Laclede Gas.

Laclede Group's earnings were $1.93 per share for the six months ended March
31, 2003 compared with $1.51 per share for the same period last year.
Earnings were primarily comprised of those of Laclede Gas, which were
favorably affected by higher gas sales arising from temperatures in its
service area that were colder than last year, the benefit of the general
rate increases put into effect by Laclede Gas on December 1, 2001 and
November 9, 2002 and higher income from off system sales. Temperatures for
the six-month period ended March 31, 2003 were 2% colder than normal and 23%
colder than the same period last year. These benefits were partially offset
by the factors mentioned previously related to the quarter ended March 31,
2003.

Regulated operating revenues for the six months ended March 31, 2003 were
$574.6 million, or $134.6 million more than the same period last year. The
increase was primarily attributable to higher gas sales levels resulting
from colder weather, higher PGA rates that are passed on to Utility
customers, subject to prudence review, increased off-system and capacity
release revenues, and the general rate increases. System therms sold and
transported increased by 111.0 million therms, or 16.0%, above the six
months ended March 31, 2002.

Laclede Group's non-regulated services operating revenues for this period
increased $32.9 million from those revenues for the same period last year
attributable to the six-month effect of revenues recorded this year by SM&P,
acquired on January 28, 2002. Other non-regulated operating revenues
increased $52.8 million primarily due to increased gas marketing sales by
Laclede Energy Resources, Inc.

Regulated operating expenses for the six months ended March 31, 2003
increased $120.5 million from the same period last year. Natural and propane
gas expense increased $110.0 million above last year's level primarily
attributable to higher volumes purchased for sendout due to the colder
weather, higher rates charged by our suppliers and higher off system gas
expense. Other operation and maintenance expenses increased $6.7 million, or
10.5%, primarily due to higher pension costs, higher wage rates, higher
group insurance charges, increased insurance premiums, and a higher
provision for uncollectible accounts, partially offset by reduced
distribution charges. Depreciation and amortization expense decreased $1.6
million primarily due to the effect of negative amortization of a portion of
the depreciation reserve effective July 1, 2002, as authorized by the
Missouri Public Service Commission (MoPSC). This effect was partially offset
by increased depreciable property. Taxes, other than income, increased $5.4
million, or 17.1%, primarily due to higher gross receipts taxes (reflecting
the increased revenues).

Laclede Group's non-regulated services operating expenses increased $35.2
million for the six months ended March 31, 2003 due to the six-month effect
of operating expenses recorded this year by SM&P. Other non-regulated
operating expenses increased $50.2 million mainly due to higher expenses
associated with increased gas marketing sales by Laclede Energy Resources,
Inc.

The $.6 million increase in interest expense was primarily due to the
issuance of trust preferred securities in December 2002 partially offset by
a reduction in short-term interest charges (reflecting reduced rates).

The increase in income taxes is mainly due to higher pre-tax income.


                                     18

<PAGE>
<PAGE>

Regulatory Matters
------------------

Laclede Gas previously appealed the MoPSC's decision in its 1999 rate case
relative to the calculation of its depreciation rates. The Circuit Court
remanded the decision to the MoPSC based on inadequate findings of fact. The
MoPSC upheld its previous order and Laclede Gas appealed this second order
to the Circuit Court. Last year, the Circuit Court ruled that the MoPSC's
second order was lawful and reasonable, and Laclede Gas appealed the Circuit
Court's decision to the Missouri Western District Court of Appeals. On March
4, 2003 the Court of Appeals issued an opinion remanding the decision to the
MoPSC based on the MoPSC's failure to support and explain its decision with
adequate findings of fact. The MoPSC has asked that the Court reconsider its
opinion or transfer this matter to the Missouri Supreme Court.

On May 31, 2002, the Staff of the Commission filed a Motion to Investigate
Laclede Gas Company's alleged transfer of its gas supply function to Laclede
Energy Services, Inc. (LES), a subsidiary of Laclede Group, and such
action's ramifications, including whether such alleged transfer required
Commission approval or was otherwise lawful. On June 10, 2002 Laclede Gas
responded, pointing out that it had not transferred its gas supply functions
to LES but had instead delegated five employees to LES with responsibility
for performing various gas supply administrative duties, many of which had
been performed in prior years by an outside party. Laclede Gas remained
primarily responsible for the gas supply function. Laclede Gas urged the
Commission to deny Staff's Motion on this and other grounds. The Commission
concluded that a case should be established to investigate the issues raised
by the Staff. The Commission also ordered the Staff to file a status report
regarding progress of the investigation and Laclede Gas to file any
responses to the Staff's status report. On March 28, 2003, Laclede Gas filed
a Motion with the Commission indicating that LES would be dissolved and that
in light of such action the parties had agreed that the investigation could
be terminated and the case closed. On April 14, 2003, LES ceased to exist as
a corporation. On April 22, 2003, the Commission ordered that the
investigation be dismissed and the case closed.

On July 29, 2002, Laclede Gas filed a proposed Catch-Up/Keep-Up Program with
the MoPSC that would permit the Company to use a portion of the savings from
its negotiated pipeline discounts to fund a low-income energy assistance
program. Pursuant to, and among revisions to the Program filed by the
Utility on September 23, 2002, the amount of discount savings that could be
used for this purpose would be limited to $6 million per year. In response
to certain objections filed by the MoPSC Staff and Missouri Office of the
Public Counsel, the Commission suspended the tariffs implementing the
Program and scheduled a prehearing conference that occurred on October 23,
2002. On January 16, 2003, the Commission, by a 3 to 2 vote, issued an order
rejecting the proposed plan. On January 23, 2003, the Utility filed a Motion
for Reconsideration seeking to identify whether the Commission would approve
the Program at a reduced funding level of $3 million per year. On February
13, 2003 the Commission convened a hearing for oral argument. On March 6,
2003 the Commission denied the Company's Motion for Reconsideration.

On June 28, 2002, the Staff of the MoPSC filed its recommendation in a
proceeding established to review Laclede Gas' gas costs for fiscal 2001. In
its recommendation, the Staff proposed to disallow approximately $4.9
million in pre-tax gains achieved by Laclede Gas in its incentive-based
Price Stabilization Program. This Program was discontinued at the end of the
2001-2002 heating season. Laclede Gas believes that Staff's position lacks
merit and has vigorously opposed the adjustment in proceedings before the
MoPSC, including a formal hearing that was held on this matter in February
2003. Final briefs relating to this matter were filed with the Commission in
April 2003. Regulatory proceeding results are, however, inherently
uncertain, and to the extent that a final Commission decision sustains
Staff's recommended disallowance, the proceeding's outcome could have a
material effect on the future financial position and results of operations
of Laclede Gas. Missouri statutes provide an opportunity for court review of
Commission decisions.


Critical Accounting Policies
----------------------------

Our Discussion and Analysis of our financial condition, results of
operations, liquidity and capital resources is based upon our financial
statements, which have been prepared in accordance with accounting
principles generally accepted in the United States of America. Generally
accepted accounting principles require that we make estimates and judgments
that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. We
evaluate our estimates on an ongoing basis. We base our estimates on
historical

                                     19

<PAGE>
<PAGE>

experience and on various other assumptions that we believe are reasonable
under the circumstances, the results of which form the basis for making
judgments about the carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these
estimates. We believe the following represent the more significant items
requiring the use of judgment and estimates in preparing our consolidated
financial statements:

         Allowances for doubtful accounts - Estimates of the collectibility
         of trade accounts receivable are based on historical trends, age of
         receivables, economic conditions, credit risk of specific
         customers, and other factors.

         Employee benefits and postretirement obligations - Pension and
         postretirement obligations are calculated by actuarial consultants
         that utilize several statistical factors and other assumptions
         related to future events, such as discount rates, returns on plan
         assets, compensation increases, and mortality rates. The amount of
         expense recognized by the Utility is dependent on the regulatory
         treatment provided for such costs. Certain liabilities related to
         group medical benefits and workers' compensation claims, portions
         of which are self-insured and/or contain stop/loss coverage with
         third-party insurers to limit exposure, are established based on
         historical trends.

         Goodwill valuation - In accordance with SFAS No. 142, "Goodwill and
         Other Intangible Assets", goodwill related to the acquisition of
         SM&P is required to be tested for impairment annually or whenever
         events or circumstances occur that may reduce the value of
         goodwill. In performing impairment tests, valuation techniques
         require the use of estimates with regard to discounted future cash
         flows of operations, involving judgments based on a broad range of
         information and historical results. If the test indicates
         impairment has occurred, goodwill would be reduced which would
         adversely impact earnings.

Laclede Gas accounts for its regulated operations in accordance with
Statement of Financial Accounting Standards (SFAS) No. 71, "Accounting for
the Effects of Certain Types of Regulation." This statement sets forth the
application of accounting principles generally accepted in the United States
of America for those companies whose rates are established by or are subject
to approval by an independent third-party regulator. The provisions of SFAS
No. 71 require, among other things, that financial statements of a regulated
enterprise reflect the actions of regulators, where appropriate. These
actions may result in the recognition of revenues and expenses in time
periods that are different than non-regulated enterprises. When this occurs,
costs are deferred as assets in the balance sheet (regulatory assets) and
recorded as expenses when those amounts are reflected in rates. Also,
regulators can impose liabilities upon a regulated company for amounts
previously collected from customers and for recovery of costs that are
expected to be incurred in the future (regulatory liabilities). Management
believes that the current regulatory environment supports the continued use
of SFAS No. 71 and that all regulatory assets and liabilities are
recoverable or refundable through the regulatory process. We believe the
following represent the more significant items recorded through the
application of SFAS No. 71:

         The Utility's Purchased Gas Adjustment (PGA) Clause allows Laclede
         Gas to flow through to customers, subject to prudence review, the
         cost of purchased gas supplies, including the costs, cost
         reductions and associated carrying costs associated with the
         Utility's use of natural gas financial instruments. The difference
         between actual costs incurred and costs recovered through the
         application of the PGA are recorded as regulatory assets and
         liabilities that are recovered or refunded in a subsequent period.

For further discussion of significant accounting policies, see the Notes to
the Consolidated Financial Statements included in the Company's 10-K for the
year ended September 30, 2002.


Accounting Pronouncements
-------------------------

In June 2001, the FASB issued SFAS No. 141, "Business Combinations," which
requires all business combinations in the scope of this Statement to be
accounted for using the purchase method. The provisions of this Statement
apply to all business combinations initiated after June 30, 2001. The FASB
also issued SFAS No. 142, "Goodwill and Other Intangible Assets," which
addresses how acquired goodwill and other intangible assets that are
acquired individually

                                     20

<PAGE>
<PAGE>

or with a group of other assets should be accounted for in financial
statements upon acquisition and after they have been initially recognized in
the financial statements. The Company had adopted the provisions of SFAS No.
141 with the acquisition of SM&P. As required by SFAS No. 141, the goodwill
for SM&P is being accounted for consistent with the provisions of SFAS No.
142. The complete adoption of SFAS Nos. 141 and 142 on October 1, 2002 did
not have a material effect on the financial position and results of
operations of Laclede Group.

The FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations,"
which addresses financial accounting and reporting for obligations
associated with the retirement of tangible long-lived assets and associated
asset retirement costs. It applies to legal obligations associated with the
retirement of long-lived assets that result from acquisition, construction,
development and/or the normal operation of a long-lived asset, except for
certain obligations of lessees. The provisions of the Statement provide for
rate-regulated entities that meet the criteria for application of SFAS No.
71, such as Laclede Gas, to recognize regulatory assets or liabilities for
differences in the timing of recognition of the period costs associated with
asset retirement obligations for financial reporting pursuant to this
Statement and rate-making purposes. The adoption of this Statement on
October 1, 2002 did not affect the financial position and results of
operations of Laclede Group. There are legal obligations related to final
abandonment of the Utility's gas distribution system. However, these
obligations related to mass property and other distribution system assets
generally are in perpetuity and can not be measured under SFAS No. 143
because of indeterminate settlement dates and cash flow estimates.

SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and
Disclosure", provides alternative methods for a voluntary change to the fair
value based method of accounting for stock-based compensation. In addition,
this statement requires prominent disclosures in both annual and interim
financial statements about the method of accounting for stock-based employee
compensation and the method used on reported results. The disclosure
provisions are effective for financial reports containing condensed
financial statements for interim periods beginning after December 15, 2002.
The required disclosures are included in this report.

FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness
of Others", requires an entity to recognize, at the inception of a
guarantee, a liability for the fair value of the obligation undertaken in
issuing the guarantee. This requirement is to be applied on a prospective
basis to guarantees issued or modified after December 31, 2002. This
Interpretation also requires disclosures in interim and annual financial
statements about obligations under certain guarantees that the entity has
issued. These disclosure requirements are effective for financial statements
of interim or annual periods ending after December 15, 2002. The required
disclosures are included in this report.


Liquidity and Capital Resources
-------------------------------

The Company's short-term borrowing requirements typically peak during colder
months when Laclede Gas borrows money to cover the gap between when it
purchases its natural gas and when its customers pay for that gas. These
short-term cash requirements have traditionally been met through the sale of
commercial paper supported by lines of credit with banks.

Laclede Gas currently has a primary line of credit in place of up to $215
million, expiring September 15, 2003, and supplemental credit lines of $15
million expiring January 31, 2004. During the quarter ending March 31, 2003,
Laclede Gas sold commercial paper aggregating to a maximum of $174.2 million
at any one time, but did not borrow from the banks under the aforementioned
agreements. At this writing, Laclede Gas has aggregate lines of credit
totaling $230 million. Short-term commercial paper borrowings outstanding at
March 31, 2003 were $122.4 million at a weighted average interest rate of
1.38%. Based on short-term borrowings at March 31, 2003, a change in
interest rates of 100 basis points would increase or decrease pre-tax
earnings and cash flows by approximately $1.2 million on an annual basis.

Most of Laclede Gas' lines of credit include a covenant limiting total debt,
including short-term debt, to no more than 70% of total capitalization. On
March 31, 2003, total debt was 58% of total capitalization.

Laclede Gas has filed a shelf registration on Form S-3. Of the $350 million
of securities originally registered under this S-3, $270 million of debt
securities remained registered and unissued as of March 31, 2003. The MoPSC
authorization for issuing securities registered on Form S-3 expires in
September 2003. The amount, timing and type of additional financing to be
issued under this shelf registration will depend on cash requirements and
market conditions.

                                     21

<PAGE>
<PAGE>

Short-term cash requirements outside of Laclede Gas have been met thus far
with internally-generated funds. However, Laclede Group has a $20 million
working capital line of credit obtained from U.S. Bank National Association,
expiring in June 2003, with interest rates indexed to LIBOR or Prime, to
meet short-term liquidity needs of its non-utility subsidiaries. As of April
2003, the ratings triggers in this line of credit have been replaced by a
covenant limiting the total debt of Laclede Gas Company to no more than 70%
of the utility's total capitalization (as noted above, this ratio stood at
58% on March 31, 2003.) While this line has not been used to date, it may be
used for seasonal funding needs of the various subsidiaries from time to
time throughout the year or to provide letters of credit.

On December 16, 2002, Laclede Capital Trust I issued 1,800,000 trust
preferred securities at a par value of $25.00 each and a distribution rate
of 7.70%. These securities mature December 1, 2032, but may be redeemed at
Laclede's option on or after December 16, 2007. The proceeds of this
issuance were used to repay Laclede Group's short-term loan of $42.8 million
from U. S. Bank, which had funded the acquisition in January 2002 of SM&P
Utility Resources, Inc. and for other general corporate purposes. These
preferred securities were issued under Laclede Group's shelf registration on
Form S-3, which became effective May 6, 2002, and allows for the issuance of
equity securities, other than preferred stock, and debt securities. Of the
$500 million of securities originally registered under this S-3, $408.6
million remain registered and unissued as of March 31, 2003. The amount,
timing and type of additional financing to be issued under this shelf
registration will depend on cash requirements and market conditions.

The Trust Preferred Securities are rated A- (stable outlook) by Standard &
Poor's Ratings Group (S&P), Baa3 (stable outlook) by Moody's Investors
Service, Inc. and BBB+ (negative outlook) by Fitch Ratings. S&P, Moody's and
Fitch will continue to monitor the ratings of the Trust Preferred
Securities, as well as our other credit ratings, and will make future
adjustments to the extent warranted.

SM&P has several operating leases, the aggregate annual cost of which is
approximately $6 million, consisting primarily of 12-month operating leases,
with renewal options, for vehicles used in its business. Upon acquisition of
SM&P, Laclede Group assumed parental guarantees of certain of those vehicle
leases. Laclede Group anticipates that the maximum guarantees will not
exceed $11 million.

Laclede Group has guarantees outstanding of $6.5 million for performance and
payment of certain wholesale gas supply purchases by Laclede Energy
Resources, Inc. (its non-regulated marketing affiliate), as of March 31,
2003.

Utility construction expenditures were $22.7 million for the six months
ended March 31, 2003, compared with $22.3 million for the same period last
year. Non-utility construction expenditures were $.2 million for the six
months ended March 31, 2003, compared with $.4 for the same period last
year.

Consolidated capitalization at March 31, 2003, excluding current obligations
of long-term debt, increased $71.1 million since September 30, 2002 and
consisted of 50.5% Laclede Group common stock equity, .2% Laclede Gas
preferred stock equity, 7.3% Laclede Capital Trust I preferred securities
and 42.0% Laclede Gas long-term debt. The proportion of preferred securities
in the consolidated capital structure increased with the December 16, 2002
issuance of trust preferred securities by Laclede Capital Trust I.

The seasonal nature of Laclede Gas' sales affects the comparison of certain
balance sheet items at March 31, 2003 and at September 30, 2002, such as
Accounts Receivable - Net, Gas Stored Underground, Notes Payable, Accounts
Payable, Regulatory Liabilities, and Advance and Delayed Customer Billings.


Market Risk
-----------

The management of Laclede Gas adopted a risk management policy that provides
for the purchase of natural gas financial instruments with the goal of
managing price risk associated with purchasing natural gas on behalf of its
customers. This policy prohibits speculation. Costs and cost reductions,
including carrying costs, associated with the Utility's use of natural gas
financial instruments are allowed to be passed on to the Utility's customers
through the operation of its Purchased Gas Adjustment Clause, through which
the MoPSC allows the Utility to recover gas supply costs. Accordingly,
Laclede Gas does not expect any earnings impact as a result of the use of
these financial instruments. At March 31, 2003, the Utility held
approximately 5.9 million MmBtu of futures contracts at an average price of
$5.17 per MmBtu. Additionally, approximately 25.0 million MmBtu of price
risk mitigation was in place

                                     22

<PAGE>
<PAGE>

through the use of option-based strategies. These positions have various
expiration dates, the longest of which extends through March 2004.

In the course of its business, Laclede Group's non-regulated marketing
affiliate, Laclede Energy Resources, Inc. (LER), enters into fixed price
commitments for the sale of natural gas to customers. LER manages the price
risk associated with these sales by either closely matching the purchases of
physical supplies at fixed prices or through the use of exchange-traded
futures contracts to lock in margins. At March 31, 2003, LER's open
positions were not material to Laclede Group's financial position or results
of operations.


Environmental Matters
---------------------

Laclede Gas is subject to various environmental laws and regulations that,
to date, have not materially affected the Company's financial position and
results of operations. As these laws, regulations, and their interpretation
evolve, however, additional costs may be incurred.

With regard to a former manufactured gas plant site located in Shrewsbury,
Missouri, Laclede Gas and state and federal environmental regulators have
agreed upon certain actions and those actions are nearing completion.
Laclede Gas currently estimates the overall costs of these actions will be
approximately $2.3 million. As of March 31, 2003, Laclede Gas has paid or
reserved for these actions. If regulators require additional actions or
assert additional claims, Laclede Gas will incur additional costs.

Laclede Gas enrolled a second former manufactured gas plant site into the
Missouri Voluntary Cleanup Program (VCP). The VCP provides opportunities to
minimize the scope and cost of site cleanup while maximizing possibilities
for site development. This site is located in and is presently owned by the
City of St. Louis, Missouri. The City of St. Louis has separately authorized
a developer to prepare both a Remedial Action Plan (RAP), for submission to
the VCP, and a site development plan. Laclede Gas continues to explore with
the developer what role, if any, it might play in these efforts. Laclede Gas
continues to evaluate other options as well, including, but not limited to,
the submission of its own RAP to the VCP. Laclede Gas currently estimates
that the cost of site investigations, agency oversight and related legal and
engineering consulting may be approximately $629,000. Currently, Laclede Gas
has paid or reserved for these actions. Laclede has requested that other
former site owners and operators share in these costs and one party has
agreed to participate and has reimbursed Laclede Gas to date for $173,000.
Laclede Gas anticipates additional reimbursement from this party. Laclede
Gas plans to seek proportionate reimbursement of all costs relative to this
site from other potentially responsible parties if practicable.

Costs incurred are charged to expense or capitalized in accordance with
generally accepted accounting principles. A predetermined level of expense
is included in Laclede Gas' rates.

Laclede Gas has been advised that a third former manufactured gas plant site
previously operated but no longer owned by Laclede Gas may contain gas plant
waste that may require remediation. Laclede Gas is working to determine the
nature and extent of such waste, if any, and its responsibility, if any, for
any remediation costs.

While the scope of costs relative to the Shrewsbury site will not be
significant, the scope of costs relative to the other sites is unknown and
may be material. Laclede Gas has notified its insurers that it seeks
reimbursement of its costs at these three manufactured gas plant sites. In
response, the majority of insurers have reserved their rights. While some of
the insurers have denied coverage, Laclede Gas continues to seek
reimbursement from them. With regard to the Shrewsbury site, denials of
coverage are not expected to have any material impact on the financial
position and results of operations of Laclede Gas. With regard to the other
two sites, since the scope of costs are unknown and may be significant,
denials of coverage may have a material impact on the financial position and
results of operations of Laclede Gas. Such costs, if incurred, have
typically been subject to recovery in rates.





Laclede Gas Company's Management Discussion and Analysis of Financial
Condition is included in Exhibit 99.1.


                                     23

<PAGE>
<PAGE>

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

For this discussion, see the "Market Risk" subsection in Management's
Discussion and Analysis of Financial Condition and Results of Operations,
page 22.


Item 4.  Controls and Procedures

Within the 90 days prior to the date of this report, we carried out an
evaluation, under the supervision and with participation of our management,
including our Chief Executive Officer and Chief Financial Officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures pursuant to Rule 13a-14 and Rule 15d-14 under the Securities
Exchange Act of 1934, as amended. Based upon that evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures are effective.

There have been no significant changes in our internal controls or in other
factors which could significantly affect internal controls subsequent to the
date we carried out our evaluation.


                                     24

<PAGE>
<PAGE>

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         For a description of environmental matters, see Note 11 to the
         Consolidated Financial Statements on page 13. For a description of
         pending regulatory matters of Laclede Gas, see Management's
         Discussion and Analysis of Financial Condition and Results of
         Operations, page 19.

         Laclede Group and its subsidiaries are involved in other
         litigation, claims and investigations arising in the normal course
         of business. While the results of such litigation cannot be
         predicted with certainty, management believes the final outcome
         will not have a material adverse effect on the consolidated
         financial position and results of operations.


Item 4.  Submission of Matters to a Vote of Security Holders:

         The annual meeting of shareholders of The Laclede Group was held on
         January 30, 2003, for the purpose of electing three directors to
         the board of directors, approving the restricted stock plan for
         non-employee directors, approving The Laclede Group Equity Plan,
         and ratifying the appointment of independent auditors. Management's
         three nominees for directors listed in the proxy statement were
         unopposed and were elected upon the following votes:

                  DIRECTOR NOMINEE             FOR             WITHHELD
                  ----------------             ---             --------
                  Arnold W. Donald          14,652,783         953,022
                  C. Ray Holman             14,698,942         906,863
                  William E. Nasser         14,732,778         873,027

         The proposal to approve the restricted stock plan for non-employee
         directors was approved upon the following vote:

                   FOR          AGAINST      ABSTAIN     BROKER NON-VOTES
                   ---          -------      -------     ----------------
                 9,771,664     1,730,965     285,156         3,818,020

         The proposal to approve The Laclede Group Equity Incentive Plan was
         approved upon the following vote:

                   FOR          AGAINST      ABSTAIN     BROKER NON-VOTES
                   ---          -------      -------     ----------------
                10,271,006     1,227,895     288,882         3,818,022

         The proposal to ratify the appointment of Deloitte & Touche LLP,
         Certified Public Accountants, to audit the accounts of the Company
         for the fiscal year ending September 30, 2003 was passed upon the
         following vote:

                  FOR           AGAINST      ABSTAIN
                  ---           -------      -------
               15,243,416       231,770      130,618


Item 6.  Exhibits and Reports on Form 8-K

(a) See Exhibit Index

(b) Reports on Form 8-K


During the quarter, Laclede Group had two reports on Form 8-K:

1.       Form 8-K dated January 30, 2003 furnishing under Item 9 the
         presentation of the Company's officers at the annual meeting of
         shareholders on that same date.

2.       Form 8-K dated January 30, 2003 furnishing under Item 9 the
         Company's first quarter earnings release.


                                     25

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<PAGE>

                                 Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.

                                                The Laclede Group, Inc.





                                                By: /s/ Barry C. Cooper
                                                    ---------------------
Dated:   April 24, 2003                             Barry C. Cooper
         ----------------                           Chief Financial Officer
                                                    (Authorized Signatory and
                                                    Chief Financial Officer)


                                     26

<PAGE>
<PAGE>

CERTIFICATIONS
--------------

I, Douglas H. Yaeger, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Laclede Group,
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a) designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its
     consolidated subsidiaries, is made known to us by others within those
     entities, particularly during the period in which this quarterly report
     is being prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of
     this quarterly report (the "Evaluation Date"); and

     c) presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

     a) all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to
     record, process, summarize and report financial data and have
     identified for the registrant's auditors any material weaknesses in
     internal controls; and

     b) any fraud, whether or not material, that involves management or
     other employees who have a significant role in the registrant's
     internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.


Date: April 22, 2003
      --------------

                                       /s/ Douglas H. Yaeger
                                       --------------------------------------
                                       Douglas H. Yaeger
                                       Chairman of the Board,
                                       President and Chief Executive Officer


                                     27

<PAGE>
<PAGE>

CERTIFICATIONS
--------------

I, Barry C. Cooper, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Laclede Group,
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a) designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its
     consolidated subsidiaries, is made known to us by others within those
     entities, particularly during the period in which this quarterly report
     is being prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of
     this quarterly report (the "Evaluation Date"); and

     c) presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

     a) all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to
     record, process, summarize and report financial data and have
     identified for the registrant's auditors any material weaknesses in
     internal controls; and

     b) any fraud, whether or not material, that involves management or
     other employees who have a significant role in the registrant's
     internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.


Date: April 22, 2003
      --------------

                                       /s/ Barry C. Cooper
                                       --------------------------------------
                                       Barry C. Cooper
                                       Chief Financial Officer


                                     28

<PAGE>
<PAGE>

                                Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.

                                               Laclede Gas Company



                                               By: /s/ Barry C. Cooper
                                                   ---------------------
Dated:   April 24, 2003                            Barry C. Cooper
         ----------------                          Chief Financial Officer
                                                   (Authorized Signatory and
                                                   Chief Financial Officer)


                                     29

<PAGE>
<PAGE>

CERTIFICATIONS
--------------

I, Douglas H. Yaeger, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Laclede Gas
Company;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a) designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its
     consolidated subsidiaries, is made known to us by others within those
     entities, particularly during the period in which this quarterly report
     is being prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of
     this quarterly report (the "Evaluation Date"); and

     c) presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

     a) all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to
     record, process, summarize and report financial data and have
     identified for the registrant's auditors any material weaknesses in
     internal controls; and

     b) any fraud, whether or not material, that involves management or
     other employees who have a significant role in the registrant's
     internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.


Date: April 22, 2003
      --------------

                                       /s/ Douglas H. Yaeger
                                       --------------------------------------
                                       Douglas H. Yaeger
                                       Chairman of the Board,
                                       President and Chief Executive Officer


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<PAGE>
<PAGE>

CERTIFICATIONS
--------------

I, Barry C. Cooper, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Laclede Gas
Company;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a) designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its
     consolidated subsidiaries, is made known to us by others within those
     entities, particularly during the period in which this quarterly report
     is being prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of
     this quarterly report (the "Evaluation Date"); and

     c) presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

     a) all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to
     record, process, summarize and report financial data and have
     identified for the registrant's auditors any material weaknesses in
     internal controls; and

     b) any fraud, whether or not material, that involves management or
     other employees who have a significant role in the registrant's
     internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.


Date: April 22, 2003
      --------------

                                       /s/ Barry C. Cooper
                                       --------------------------------------
                                       Barry C. Cooper
                                       Chief Financial Officer


                                     31

<PAGE>
<PAGE>

                              INDEX TO EXHIBITS
                              -----------------

Exhibit
  No.
-------

10.01 -  Amendment to Laclede Gas Company Salary Deferral Savings Plan
         effective March 1, 2003.

10.02 -  Form of Non-Qualified Stock Option Award Agreement under The
         Laclede Group Equity Incentive Plan.

99.1  -  Laclede Gas Company - Management's Discussion and Analysis of
         Financial Condition and Results of Operations, Financial Statements
         and Notes to Financial Statements.

99.2  -  Certificate of compliance for The Laclede Group, Inc. under Section
         906 of the Sarbanes-Oxley Act of 2002 for Douglas H. Yaeger

99.3  -  Certificate of compliance for The Laclede Group, Inc. under Section
         906 of the Sarbanes-Oxley Act of 2002 for Barry C. Cooper.

99.4  -  Certificate of compliance for Laclede Gas Company under Section 906
         of the Sarbanes-Oxley Act of 2002 for Douglas H. Yaeger.

99.5  -  Certificate of compliance for Laclede Gas Company under Section 906
         of the Sarbanes-Oxley Act of 2002 for Barry C. Cooper.




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