Interim Results

Associated British Engineering PLC
20 December 2000

ASSOCIATED BRITISH ENGINEERING PLC

INTERIM REPORT 2000


CHAIRMAN'S STATEMENT


The group made a pre-tax profit of £57,000 in the six months to 30 September
2000 against a pre-tax loss of £339,000 in the comparable period last year.
The continuing operations made a pre-tax loss of £163,000 against a pre-tax
loss of £169,000 in the same period last year.


Diesel services had a slow start to the year and had an operating loss of 
£18,000 against a loss of £9,000 last year. On 16 December 2000 the Board
announced that a subsidiary, British Polar Engines Limited, had acquired the
fixed assets and goodwill from Kelvin Diesels plc. It is believed that the
acquisition will bring operating efficiencies and will enable the diesel
services division to become a more substantial independent provider of diesel
services.


Negotiations to sell the properties held for sale in Havant are now well
underway. The costs of central services have been reduced in the last year to
reflect the current size of the group. The Board is continuing to investigate
the future strategy for the group.

                                                               RA Pearce Gould
                                                                      Chairman
19 December 2000

78 Chapel Street
Thatcham
Berkshire
RG18 4QN


                     UNAUDITED RESULTS FOR THE SIX MONTHS

                            TO 30TH SEPTEMBER 2000
Audited                                                     6 months   6 months
year                                                              to         to
       to                                                    30.9.00    30.9.99
  31.3.00
                                                                       Restated
    £000s                                                      £000s      £000s
    3,363  Turnover - Continuing operations                    1,742      1,444
   20,027  - Discontinued operations                               -     17,129
   23,390                                                      1,742     18,573
    (334)  Operating (loss)/profit - Continuing                (183)      (244)
           operations
    (713)  - Discontinued operations                               -        352
  (1,047)                                                      (183)        108
           Discontinued Middle East operations
    (117)  - Exceptional costs on the sale                         -          -
        -  - Release of provisions                                 -          -
    (117)                                                          -          -
           Discontinued catering equipment operations
    (498)  - Exceptional costs                                     -          -
  (1,120)  - Goodwill previously eliminated against                -          -
           reserves
        -  - Release of provisions                               220          -
  (1,618)                                                        220          -
        -  Profit attributable to interest in associated           -          7
           undertakings
           Profit/(loss) on ordinary activities before
           finance costs
    (334)  - Continuing operations                             (183)      (244)
  (2,448)  - Discontinued operations                             220        352
  (2,782)                                                         37        108
      125  Net finance income/(costs) - Continuing                20         75
           operations
    (678)  - Discontinued operations                               -      (529)
    (553)                                                         20      (454)
           Profit/(loss) on ordinary activities before
           taxation
    (209)  - Continuing operations                             (163)      (169)
  (3,126)  - Discontinued operations                             220      (177)
  (3,335)                                                         57      (346)
        -  Taxation                                                -          -
  (3,335)  Profit/(loss) on ordinary activities after             57      (346)
           taxation
     (23)  Equity minority interest                                        (15)
  (3,358)  Profit/(loss) for the period                           57      (361)
           Dividends:
     (51)  Preference dividends                                 (26)       (26)
  (3,409)  Retained profit/(loss)                                 31      (387)
           Profit/(loss) per ordinary share
    (20)p  - Continuing operations                             (14)p      (16)p
   (260)p  - Basic                                                2p      (29)p
           Dividends per share paid and proposed:
     7.0p  7% preference                                           -       3.50
     8.0p  8% preference                                           -       4.00




                        UNAUDITED GROUP BALANCE SHEET

                          AS AT 30TH SEPTEMBER 2000

Audited                                                         30.9.00  30.9.99
31.3.00                                                          £000s   £000s
         FIXED ASSETS
    724  Tangible assets                                           633   3,062
         CURRENT ASSETS
  1,389  Stock                                                   1,385   6,534
    921  Properties held for sale                                  926       -
      -  Debtors - amount falling due after one year                 -     403
  1,685  Debtors - amount falling due within one year              885  15,300
  1,203  Cash at bank and in hand                                1,328     143
  5,198                                                          4,524  22,380
  1,721  Creditors - amounts falling due within one year           916  19,038
  3,477  Net current assets                                      3,608   3,342
  4,201  Total assets less current liabilities                   4,241   6,404
     38  Creditors - amounts falling due after one year             23     471
     37  Provisions for liabilities and charges                     35      40
  4,126  Net assets                                              4,183   5,893
         CAPITAL AND RESERVES
  3,339  Called up share capital                                 3,339   3,339
  5,038  Share premium account                                   5,038   5,038
     11  Other reserves                                             11      36
(4,262)  Profit and loss account                                (4,205)  (2,558)
  3,414  Equity shareholders' funds                              3,445   5,143
    712  Non Equity shareholders' funds                            738     712
  4,126  Total shareholders' funds                               4,183   5,855
      -  Equity minority funds                                       -      38
  4,126                                                          4,183   5,893

S T A T E M E N T O F T O T A L R E C O G N I S E D G A I N S AND
L O S S E S

(3,358)  Profit/(loss) for the period                               57   (354)
    101  Foreign Exchange adjustment                                 -   (104)
         Unrealised loss on the revaluation of the fixed asset
  (370)  investment properties                                       -       -
(3,627)  Total recognised gains and losses for the period           57   (458)

                      UNAUDITED GROUP CASHFLOW STATEMENT

                  FOR THE SIX MONTHS TO 30TH SEPTEMBER 2000

   Audited                                                  6 months   6 months
      Year                                                        to         to
to 31.3.00                                                   30.9.00    30.9.99
     £000s                                                     £000s      £000s
            OPERATING ACTIVITIES
     (498)  Cash flow from operating activities                (140)      (249)

            RETURNS ON INVESTMENTS AND SERVICING
            OF FINANCE
       191  Finance income received                               73         83
     (702)  Finance costs paid                                  (45)      (517)
      (42)  Finance costs element of Finance lease rental        (8)       (20)
            payments
      (51)  Preference dividends paid                              -       (26)
            Net cash flow from returns of investments              -
     (604)  and servicing of finance                              20      (480)
            TAXATION
       (5)  UK Taxation paid                                       -        (5)

            CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
     (213)  Purchase of tangible fixed assets                    (5)      (141)
         8  Net proceeds on sale of tangible fixed assets         33          -
     (205)                                                        28      (141)

            DISPOSALS AND CLOSURES
            Sale of the Middle East operations
     6,507  and repayment of intercompany debt                  (41)          -
        77  Discontinued catering equipment operations           310          -
     6,584  Net cash flow from disposals and closures            269          -
     5,272  Cash inflow/(outflow) before financing               177      (875)

            FINANCING
     (384)  Decrease in debt                                     (6)       (93)
     (110)  Capital element of finance lease payments           (46)      (116)
     (494)                                                      (52)      (209)
     4,778  Increase/(decrease) in cash in the period            125    (1,084)


                     UNAUDITED RESULTS FOR THE SIX MONTHS

                            TO 30TH SEPTEMBER 2000

Analysis of turnover, profit/(loss) before taxation and net assets

                                               Profit/
                                               (loss)
                              Turnover           before            Net
                                                taxation         assets
                                  2000  1999       2000    1999     2000  1999
                                 £000s £000s      £000s  £0000s    £000s £0000s

Diesels services                 1,742  1,444      (18)    (69)    2,220  1,954
Central services                     -     -      (165)    (175)    1,963  3,061
Continuing operations            1,742  1,444     (183)    (244)    4,183  5,015
Middle East operations               -  12,848        -     731        -   5,541
Catering equipment                   -  4,281         -    (283)       - (4,663)
Central services                     -     -          -    (96)        -     -
Discontinued oprations                  17,129          -     352            878
Turnover/net assets              1,742  18,573                      4,183  5,893
Operating (loss)/profit                           (183)     108
Exceptional items:
- Discontinued catering equipment                   220       -
operations
Profit attributable to                                -       7
associate
Finance income/(costs)                               20    (454)
Profit/(loss) before tax                             57    (339)

The calculation of earnings per ordinary
share is based on:
                                           2000                1999
                                         Earnings  Earnings  Earnings  Earnings
                                                        per                 per
                                                      share               share
                                            £000s     pence     £000s     pence
Profit/(loss) for the financial year           57               (361)
Less preference dividends                    (26)                (26)
Profit/(loss) attributable to ordinary
Shareholders                                   31         2     (387)      (29)
Add (profit)/loss on discontinued
Operations before taxation                  (220)      (16)       177        13
Add equity minority interest                    -         -        15         -
Loss arising from continuing operations     (189)      (14)     (195)      (16)

                                           Number              Number
                                            £000s               £000s
Weighted average number of ordinary
share in issue during the year
                                         1,313,427            1,313,427


 1. The comparative figures for the year to 31st March 2000 are abridged from
    the accounts for that year and do not constitute full accounts within the
    meaning of Section 240 of the Companies Act 1985(as amended). Statutory
    accounts for that period, on which the Auditors gave an unqualified
    opinion have been delivered to the Registrar of Companies.


 2. This interim report has been prepared in accordance with the accounting
    policies adopted in the latest published accounts. This interim report has
    neither been audited nor reviewed by our auditors.


 3. The comparative figures for the six months ended 30 September 1999 have
    been restated to show the analysis of continuing and discontinued
    operations.


 4. As required Financial Reporting Standard 4 the non-equity dividends have
    been charged to the Profit and loss account and then added back to
    reserves because the company does not have sufficient reserves to make
    this payment.