Interim Results

Barr(A.G.) PLC
26 September 2001


FOR IMMEDIATE RELEASE

26 September 2001

                               A.G. Barr p.l.c.

                               INTERIM RESULTS

A.G. Barr p.l.c., the Scottish based manufacturer of soft drinks including the
popular Irn-Bru, Tizer and Orangina, announces its interim results today for
the 6 months period ended 28 July 2001.

Key Points


  * Turnover up 2% to £59.4 million (2000 - £58.2 million).

  * Interim Dividend of 7.35p in respect of year to January 2002 (2000 -
    7.35p).

  * Profit before tax for the reported period was £5.72 million (2000 - £
    7.69 million) a decrease reflecting in part a narrowing of trading
    margins.

Commenting Robin Barr, the Executive Chairman, said: 'A positive aspect of the
first six months was the continuing progress in the development of the Irn-Bru
brand in England, with a double digit percentage growth. This provides a
strong platform to creating Irn-Bru a genuine national soft drink brand.



For further information:

A.G.Barr:
Robin Barr, Chairman or
Iain Greenock, Finance Director               Tel:     [phone]

Buchanan Communications:
Tim Thompson/Nicola Cronk                     Tel:     [phone]



Chairman's Statement

Profit on ordinary activities before taxation for the 6 months to 28 July 2001
was £5,723,000 compared with £7,694,000 for the same period last year.

This is clearly a disappointing result and reflects in part a narrowing of
trading margins. Competitive pressures which have grown within the grocery
market place have had an adverse impact on the prices which we can realise. In
the wholesale sector the general level of prices has been affected by the
continuing availability of 'grey imports' of our competitors' major brands
which the high value of Sterling has made it attractive to bring into the U.K.

With the exception of PET bottles our main costs remained at or only
marginally above the levels paid last year. The basic price of PET pre-forms
rose year-on-year by some 121/2% but our moves to use lighter weight bottles
enabled us to contain the actual cost increase to around two thirds of that
figure.

A number of special factors during the half year contributed to the shortfall.
These were:


  * As already indicated, we carried out in February a reorganisation of our
    'small shop' retail division in Scotland at a cost of £500K. The benefits
    of this action should see the cost recouped over the first year of the new
    arrangements, but clearly the current half year bore a significant net
    cost.

  * As also previously advised, we installed a second PET bottle filling
    line at our Cumbernauld factory to provide additional capacity to match
    our sales in Scotland. At our Mansfield factory an old bottle filler on
    one of the three PET lines was replaced by a new modern filler in order to
    improve the output achievable on that line. These changes caused costs to
    be £370K higher during this six months.

  * The last week in May saw the introduction of a new warehouse management
    system at our Distribution centre in Glasgow, but this gave rise during
    the commissioning phase to substantial problems which resulted both in
    lost sales through failed deliveries and in subsequent higher operating
    costs to recover our normal level of customer service. The restoration of
    service was achieved prior to the end of the half year but we estimate
    that additional costs of some £400K were incurred during that period.

Turnover for the 6 months to July 2001 was £59.4 million, an increase of just
over 2%. Although the overall summer weather in the U.K. to the end of July
was better than the very poor conditions experienced in 2000, the improvement
was primarily in the south of England and not experienced in those areas where
our main distribution strength lies.

Although not of overall significance export turnover was well down compared
with the same period last year, reflecting the problems which affected our
franchise bottler in Russia. That franchise was ultimately terminated in early
August and short term arrangements have been put in place to continue some
distribution of our products pending the outcome of negotiations on the
appointment of a new permanent franchise bottler.

During the first half of this year we commenced distribution of the Lipton Ice
Tea brand in the small shop and wholesale distribution segment across Great
Britain under a licence agreement with Unilever. We believe that this brand,
which has substantial distribution worldwide, will prove to be a valuable
addition to our portfolio.

In June 2001 Cadbury Schweppes and Pernod Ricard announced that they had
reached agreement on the sale to the former of the business of Orangina and it
is anticipated that the transaction will be finalised by the end of this year.
It will however be early 2004 at the soonest before the rights in Great
Britain and certain other countries finally pass to Cadbury Schweppes. In the
meantime we will continue to hold our franchise for the brand direct from
Pernod Ricard.

Your directors have declared an interim dividend of 7.35p per share payable on
26 October 2001 in respect of the year to January 2002. This is the same rate
of interim dividend as was paid last year.

Turnover for the six weeks subsequent to 28 July has been 4% up compared with
the same period last year. The weather in Scotland has continued to prove
disappointing but August did see some high temperatures in England.

Pricing has continued to be weak compared with a year ago and it seems likely
that this situation will continue at least until the Spring of next year.

The year-on-year increase in PET bottle prices will be modestly lower during
the second half of the year but, against this, the price of sugar will be some
4% higher, although we have hedged our position until the end of our financial
year to protect us against any substantial fall in the value of Sterling
against the Euro and its consequential effect on U.K. sugar prices.

Looking ahead, a positive aspect of the first six months trading was the
progress which we continued to achieve in the development of our Irn-Bru brand
in England. A double digit percentage increase in litreage sales provides a
strong platform for further progress towards our ambition to create a genuine
national soft drinks brand.


Robin Barr, Chairman                                       26 September, 2001



A.G. BARR p.l.c.
Consolidated Profit and Loss Account

                             6 months ended       6 months ended    Year ended
                                   28.07.01             29.07.00      27.01.01  
                                       £000                £'000          £000 

  Turnover (note 2)                   59,412               58,162      111,878

  Profit on ordinary                   5,561                7,623       13,697
  activities before                                                           
  interest                                                                    

  Interest                               162                   71          225

  Profit on ordinary                   5,723                7,694       13,922
  activities before                                                           
  taxation                                                                    

  Taxation (note 3)                    1,743                2,358        4,159

  Profit on ordinary                   3,980                5,336        9,763
  activities after                                                            
  taxation                                                                    
                                                                      
  Consolidated Statement of Total Recognised Gains and Losses 

  Profit as above                      3,980               5,336         9,763 
  Adjustment for prior periods (note 4)    -               3,205         3,205 
  Total gains and losses recognised    3,980               2,131         6,558 
 
                                                                              
  Earnings per share on issued share   20.47 p             27.44 p       50.22 p
  capital (note 5)                                                              
 
  Basic earnings per share             21.22 p             28.32 p       51.87 p

  Fully diluted earnings per share     20.01 p             27.20 p       50.40 p

  Dividend per share                    7.35 p              7.35 p       21.60 p

  Dividend (£000)                      1,429               1,429         4,200 
                                                               
                  
Record date:                5 October, 2001  
Ex-div date:                3 October, 2001  
Payment date of dividend:   26 October, 2001 
 

Consolidated Balance Sheet
                                                           As restated

                                      As at    As at 29.07.00    As at 27.01.01
                              28.07.01 £000              £000              £000

Fixed assets                         41,893            38,580            39,102

Tangible assets (note 6)
Investment in associated                100               100               100
undertaking
                                     41,993            38,680            39,202
Current assets
Stocks                               12,568            10,658            10,800

Debtors                              23,780            22,781            19,834

Investment                            2,646             2,050             2,499

Cash at bank                          6,313             7,307            11,199
                                     45,307            42,796            44,332
Creditors: Due within one            26,377            24,738            25,064
year
Net current assets                   18,930            18,058            19,268
Total assets less current            60,923            56,738            58,470
liabilities

Provisions for liabilities             
and charges
                                     
Deferred credit                         651               693               667
                                      
Deferred taxation                     4,662             4,642             4,744
                                      5,313             5,335             5,411
                                      5,313             5,335             5,411
                                     55,610            51,403            53,059
Capital and reserves                  

Called up share capital               4,861             4,861             4,861
 
Share premium account                   859               859               859 

Profit and loss account              49,890            45,683            47,339 
    
                                     55,610            51,403            53,059



Notes to the Consolidated Accounts

1. Non-statutory accounts

These interim financial statements, which have been prepared on the basis of
the accounting policies set out in the company's 2001 published accounts, do
not constitute statutory accounts and are unaudited. Comparative figures for
the year ended 27 January, 2001 have been extracted from the statutory
accounts of the company on which the auditors gave an unqualified report and
which have been filed with the Registrar of Companies.

A copy of this announcement is distributed to all registered shareholders of
the company and is available for members of the public upon application to the
Company Secretary at 1306 Gallowgate, Glasgow G31 4DS and on our corporate
website at www.agbarr.co.uk


2. Turnover

The figure for turnover includes exports of £155,000 (2000 - £305,000 ; Year
2001 - £427,000).


3. Taxation

Corporation tax is provided at the anticipated rate of taxation for the
group's current financial period.

Adjustment for prior periods

The financial statements for the six months ended 29 July, 2000 and the year
ended 27 January, 2001 have been restated to reflect the change in accounting
policy for deferred taxation required as a result of FRS 19 'Deferred tax'.
Retained profit at 29 January, 2000 has been restated to reflect this change
for earlier years. The profits for the six months to 29 July, 2000 and the
year to 27 January, 2001 have both been decreased by £88,000


5. Earnings per share

The calculation is based on the group profit after taxation and the number of
ordinary shares of 25p each in issue at 28 July, 2001.

6.Movement in tangible fixed assets  6 months      6 months                Year
                                       Ended          ended               ended
                                    28.07.01       29.07.00            27.01.01
                                        £000           £000                £000
Beginning of period                   39,102         40,384              40,384
Additions                              6,104          1,148               4,707
Disposals                              (245)          (167)               (279)
Depreciation                         (3,068)        (2,785)             (5,710)

End of period                         41,893         38,580              39,102




Consolidated Cash Flow Statement
                                                 6 months   6 months       Year
                                                    ended      ended      ended
                                                 28.07.01   29.07.00   27.01.01
                                                     £000       £000       £000

Net cash inflow from operating activities (note     2,302      3,831     16,932
1)

Returns on investment and servicing of finance
Interest received                                     176        128        311
Interest paid                                        (10)        (7)        (9)
Interest element of hire purchase paid                (4)       (50)       (77)
                                                      162         71        225
Taxation

Corporation tax paid                              (1,676)    (1,062)    (3,821)

Capital expenditure and financial investment

Purchase of tangible fixed assets                 (2,728)    (2,444)    (7,115)
Sale of tangible fixed assets                         130        105        188
                                                  (2,598)    (2,339)    (6,927)

Dividends paid                                    (2,771)    (2,382)    (3,811)

                                                  (4,581)    (1,881)      2,598
Financing
Capital element of hire purchase repaid             (304)      (564)    (1,152)

(Decrease)/increase in cash                       (4,885)    (2,445)      1,446



Notes to the Consolidated Cash Flow Statement


1. Net cash inflow from operating        6 months           6 months       Year 
activities                                  ended              ended      Ended 
                                          28.07.01          29.07.00   27.01.01
                                              £000              £000       £000

Operating profit                             5,561             7,623     13,697
Depreciation                                 3,068             2,785      5,710
Loss on sale of tangible assets                115                62         91
Government grants written back                (15)              (26)       (52)
(Increase) in stocks                       (1,768)           (1,631)    (1,773)
(Increase) in debtors                      (6,422)           (6,735)    (2,670)
(Increase)/decrease in investment            (147)               178      (271)
Increase in creditors                        1,910             1,575      2,193
Pension provision release                        -                 -          7
                                             2,302             3,831     16,932

2.Reconciliation of net cash flow to movement
in net funds

(Decrease)/increase in cash in the period   (4,885)           (2,445)     1,446
Cash outflow from decrease in debt and 
leasing finance                                304               564      1,152

Movement in net funds in the period         (4,581)           (1,881)     2,598
Net funds at 27 January, 2001               10,894             8,296      8,296
Net funds at 28 July, 2001                   6,313             6,415     10,894


3.     Analysis of changes in net funds           At      Cash               At
                                            27.01.01     Flows         28.07.01
                                                £000      £000             £000

Cash in hand and at bank                      11,199   (4,886)            6,313
Overdrafts                                       (1)         1                -
Hire purchase creditor                         (304)       304                -

Total                                         10,894   (4,581)            6,313