i n t e r i m r e s u l t s 8 september 2004. financial highlights 6 months to june 2004 £ million...

I N T E R I M R E S U L T S8 September 2004

Financial highlights

6 months to June 2004£ million

20041 Half

20031 Half % inc.

Group sales 70.9 69.7 1.8%

Operating profit 10.1 10.1

Operating margin 14.3% 14.5%

Net interest (1.4) (1.5)

Profit before tax 8.7 8.6 1.7%

Earnings per share 3.9p 3.7p 6.0%

Dividend per share 1.25p 1.1p 13.6%

Key features

Strong volume growth

Adverse market / product line mix

Strength of sterling

Strong Cutisin performance

Investment in capacity

Cash impact of Cutisin minority purchase

New products

Sales analysis 2004

Sales change vs 2003

1 Half

Volume 7.0%

Price / Mix(1.8)%

Operations 5.2%

Foreign Exchange(3.4)%

Total 1.8%

Regional sales by destination 2004

Change vs 2003

Solid growth in UK / Ireland

Strong performance in Eastern Europe and Russia

Pricing pressure in the UK

Adverse exchange impact

2004£m Operations Exchange Total

Europe 42.0 3.3% (1.8)% 1.5%

Regional sales by destination 2004

Change vs 2003

Market share gain in domestic US market

Strong growth in Latin America

Increased volume discounts

Impact of weak US$

2004£m Operations Exchange Total

Americas 14.8 10.1% (12.4)% (2.3)%

Regional sales by destination 2004

Change vs 2003

Australia / New Zealand broadly in line

Strong recovery of volumes in Japan

Volume gains in South East Asia

Positive exchange impact

2004£m Operations Exchange Total

Asia / Pacific 14.1 5.7% 2.1% 7.8%

Regional sales 2004

Sales change vs 2003

1 Half2004£m Operations Exchange Total

Europe 42.0 3.3% (1.8)% 1.5%

Americas 14.8 10.1% (12.4)% (2.3)%

Asia / Pacific 14.1 5.7% 2.1% 7.8%

Total 70.9 5.2% (3.4)% 1.8%

Profit and loss

6 months to June 2004£ million

20041 Half

20031 Half

Group sales 70.9 69.7

Operating profit 10.1 10.1

Operating margin 14.3% 14.5%

Net interest (1.4) (1.5)

Profit before tax 8.7 8.6

Tax 2.5 2.6

Minority interest 0.0 0.1

Profit for the period 6.2 5.9

Earnings and dividend

6 months to June 200420041 Half

20031 Half

Earnings per ordinary share

Basic 3.9p 3.7p

Diluted 3.9p 3.7p

Dividend per ordinary share 1.25p 1.1p

Balance sheet

£ millionJune2004

December2003

Fixed assets 86.6 89.2

Net current assets 32.0 25.8

Long term creditors and provisions (53.7) (50.2)

64.9 64.8

Share capital, share premium and reserves

58.0 56.6

Retained earnings 6.9 8.2

64.9 64.8

Net debt (31.5) (26.7)

Gearing (48.5)%(41.2)%

Cash flow

6 months to June 2004 £ million

20041 Half

20031 Half

Net cash inflow from operating activities 10.1 10.5Net interest paid (1.5) (1.6)Tax paid (2.1) (1.4)Capital expenditure (4.0) (2.4)Acquisitions and disposals (1.7) (0.2)Equity dividend paid (3.8) (3.2)Net cash flow before financing (3.0) 1.7Exchange (1.8) (0.7)

(Increase) / decrease in net debt (4.8) 1.0

Interest cover 7x 7x

Outlook

Update on development of new products

Second half trading