Interim Results

Buckland Group PLC
14 September 2004


                               BUCKLAND GROUP PLC

                          Report & Financial Satements
                      For the 6 months ended 30 June 2004


                                 Interim Report

Chairman's Statement

I present the interim results for Buckland for the six months ended 30 June
2004. As previously anticipated, these show a deficit for the period with a loss
before tax of £277,800 compared with a loss of £59,998 for the first half of
2003 and a loss of £ 404,842 for the second half of 2003. Sales fell 40% to £
1.4m reflecting the withdrawal from low margin business. The loss per share was
0.15p (2002: 0.04p loss per share). No interim dividend is proposed.

Trading

EAC had a very difficult first half year with rising prices of raw materials
adding to the problems of continuing strong price competition from China. The
decision was taken not to chase selling prices any lower in order to match that
competition but rather to deliberately shed low margin business. This led to a
sharp fall in sales compared with the same period of 2003 but allowed
reallocation of manufacturing capacity and working capital to Derlite, where
both gross margins and future prospects are much better. Indeed, the first half
of 2004 saw further growth for Derlite in sales compared to last year and its
turnover now accounts for more than half of the group total.

The first indications of the benefit to the group's financial performance from
this switch in emphasis towards Derlite can be seen from the reduction in
working capital requirements and in the improvement in gross profit margins from
11% in 2003 to 16% in the first half of 2004. We expect this trend to continue
in the second half of 2004 and beyond. Administration costs have also been
significantly reduced following the restructuring of the management team in
Thailand..

Outlook

Derlite's prospects for the rest of 2004 are good, with a strong current order
book and the expectation of significant new supply agreements being signed with
customers in the coming weeks. EAC is expected to be cash positive in continuing
difficult trading conditions.

Group management accounts show a return to pre-tax profits in August and we are
cautiously optimistic that this trend will be maintained for the rest of the
year.

Patrick Rogers
Chairman
14th September 2004


                      Consolidated profit and loss account



                   Unaudited Six month       Unaudited Six month   Twelve month
                  period ended 30 June      period ended 30 June   period ended
                                  2004                      2003    31 December
                                                                           2003
                                     £                         £             £

Turnover                     1,411,365                 2,354,259     4,453,297

Cost of sales               (1,183,268)               (2,090,151)   (3,956,500)
                          ------------              ------------   -----------
Gross profit                   228,097                   264,108       496,797

Administrative 
expenses                      (467,234)                 (527,454)   (1,282,109)
Other operating
(expense)/income               (24,739)                  211,578       369,711
                          ------------              ------------   -----------

Operating
(loss)/profit                 (263,876)                  (51,768)     (415,601)

Interest receivable                  8                         -           104

Interest payable and
similar charges                (13,932)                   (8,230)      (49,343)
                          ------------              ------------   -----------

(Loss)/profit
on ordinary
activities before
taxation                      (277,800)                  (59,998)     (464,840)

Tax on profit
on ordinary
activities                           -                         -        (2,137)
                          ------------              ------------   -----------

Retained
(loss)/profit
transferred
(from)/to
reserves                      (277,800)                  (59,998)     (466,977)
                          ============              ============   ===========

(Loss)/earning
per ordinary
share: Basic
and Diluted                      (0.15)p                   (0.04)p       (0.30)p



                           Consolidated balance sheet

                               At 30 June 2004            At 31 December 2004 

                                  £            £            £                £
Fixed assets
Intangible assets                        327,251                       336,188
Tangible assets                          262,291                       318,009
                                        --------                      --------
                                         589,542                       654,197

Current assets
Stocks                      375,155                   471,646
Debtors                     405,945                   581,870
Cash at bank and in hand     28,637                    84,542
                           --------                  --------
                            809,737                 1,138,058

Creditors: amounts
falling due
within one year          (1,071,793)               (1,150,943)  
                           --------                  --------
Net current                             (262,056)                      (12,885)
(liabilities)/assets                    --------                      --------

Total assets less
current liabilities                      327,486                       641,312

Creditors: amounts
falling due
after more than one year                 (26,725)                      (49,247)
                                        --------                      --------
                                         300,761                       592,065
                                        ========                      ========

Capital and reserves
Called up share capital                2,417,752                     2,417,752
Share premium account                    735,775                       735,775
Profit and loss account               (2,852,766)                   (2,561,462)
                                        --------                      --------

Equity shareholders'                     300,761                       592,065
funds                                   ========                      ========



                        Consolidated cash flow statement


                                                        Unaudited    Year ended
                                                        Six month   31 December
                                                     period ended          2003
                                                     30 June 2004               
                                                                £             £

Net cash(outflow)/inflow from operating
activities (see below)                                    (21,841)      (56,700)
Returns on investments and servicing of finance           (13,924)      (49,239)
Taxation                                                   (2,066)            -
Capital expenditure                                       (25,188)     (126,945)
                                                        ---------     ---------
Cash outflow before management of liquid resources 
and financing                                             (63,019)     (232,884)

Financing                                                    (317)      164,953
                                                        ---------     ---------
(Decrease) in cash                                        (63,336)      (67,931)
                                                        =========     =========

Reconciliation of net cash flow to movement in net 
funds
(Decrease) in cash in the period                          (63,336)      (67,931)
Cash outflow from decrease in debt                            317        28,047
                                                        ---------     ---------
Change in net debt resulting from cash flows              (63,019)       39,884

Loan notes repaid                                               -        90,000
Finance leases acquired                                         -       (29,403)
Exchange movement                                          (5,154)         (490)
                                                        ---------     ---------
Movement in net debt in the period                        (68,173)       20,223

Opening net debt                                         (237,242)     (257,465)
                                                        ---------     ---------
Closing net debt                                         (305,415)     (237,242)
                                                        =========     =========

Reconciliation of operating (loss)/ profit to net
cash outflow from operating activities

Operating (loss)/profit                                  (263,876)     (415,601)
Depreciation                                               81,597       192,631
Amortisation of goodwill                                    8,937       100,470
Loss on sale of fixed assets                                 (691)        1,553
Decrease/(Increase) in stocks                              91,472        63,280
Decrease/(Increase) in debtors                            166,777       106,215
Decrease in creditors                                    (106,057)      (98,713)
Other non cash operating adjustment                             -        (6,535)
                                                        ---------     ---------
Net cash (outflow) from operating activities              (21,841)      (56,700)
                                                        =========     =========

Notes to the Interim Results:

1   The consolidated profit and loss account incorporates the unaudited results
    of Buckland Group Plc and all its subsidiary undertakings up to 30 June
    2004, and has been prepared on a basis consistent with the accounting
    policies set out in the audited financial statements for the year ended 31
    December 2003. Earnings/ (loss) per share for the six months to June 2004
    have been calculated based on the weighted average number of shares in issue
    for the period of 190,779,408.

2   This Interim Report was approved by the board of directors on 14th September
    2004.

    This interim financial information does not comprise statutory accounts as
    defined in Section 240 of the Companies Act 1985.

    The financial information for the period ended 31 December 2003 is an
    extract from the latest company accounts. Thos accounts received an
    unqualified auditors report and have been filed with the Registrar of
    Companies.

    The financial information for the period ended 30 June 2004 has not been
    subject to review by the auditors.

3   Copies of this interim report are being sent to shareholders and are
    available from the Company Secretary at Buckland Group Plc, 3 Draycott
    Place, London SW3 2SE.


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