Final Results - Year Ended 31 December 1999

Burmah Castrol PLC
28 February 2000




                                 
           BURMAH CASTROL PLC: 1999  PRELIMINARY RESULTS
                           A RECORD YEAR

Highlights
*   Earnings per share up 21 per cent, to 76.7 pence.
*   Castrol, up 14 per cent to £213.0 million, and Chemicals,
    up 10 per cent to £78.6 million, achieved record profits.
*   Major  marketing  initiatives launched; significant  cost
    reduction programmes well under way.
*   Full year dividend of 47.3 pence, up 10 per cent.
*   Another strong performance expected in 2000.
                                 
                           1999          Change on 1998
                                as reported      at constant
                                                  currencies
-------------------------------------------------------------
Operating profit        £283.9m      +13%            +11%
Profit before tax       £259.0m       +7%             +5%
Profit after tax
and minorities          £143.6m       +7%             +6%
Earnings per share        76.7p      +21%            +19%
-------------------------------------------------------------
Continuing operations before exceptionals

Chief Executive, Tim Stevenson, comments:
'Our  strategy is already producing excellent results and will  be
vigorously   pursued.   The  powerful  performance  from   Castrol
demonstrates  the  strength  of  this  internationally  recognised
brand, which will remain a major source of growth.   Our principal
Chemicals businesses are also achieving strong results.  Our focus
now  is  on  driving  the  top line whilst  carrying  forward  our
business  efficiency programmes as quickly as  possible.   Further
acquisitions,  and the disposal of businesses to which  we  cannot
add value, are also under review.'

Enquiries:
James Alexander      Corporate Affairs Director   0171 499 9533
                                                 on 28 February
                                    and 01793 452006 thereafter
Rachel Hirst         Hogarth                      0171 357 9477

A full copy of the preliminary results is available on the Burmah
Castrol web site: www.burmah-castrol.com.  A copy of the slides
and text used at the analysts presentation will also be available
on the web site from 10 a.m.



Summary of Results
Burmah Castrol achieved significant progress during 1999.

Operating  profit  rose  13 per cent, to  £283.9  million,  before
discontinued  businesses  and  exceptional  items.   There  was  a
particularly  powerful  performance from Castrol  Consumer,  which
marked its Centenary year with a profit increase of 17 per cent, a
clear  demonstration  of  the  strength  of  this  internationally
recognised  brand.  Burmah Castrol also benefited from its  strong
position  in  Asia Pacific, as the region's economies  started  to
recover.

Earnings per share, before discontinued businesses and exceptional
items,  increased 21 per cent to 76.7 pence, the  higher  increase
reflecting the initial effects of the return of approximately £280
million of capital to shareholders in May 1999.

In  addition  to  the return of capital during  the  year,  Burmah
Castrol implemented a number of other initiatives in line with its
strategy   to   create  shareholder  value.   Important   customer
partnerships such as the global deal with BMW were put  in  place.
A series of business efficiency programmes were started which will
create  benefits of some £60 million per annum by 2002, increasing
thereafter.  New operations were established in China, East Europe
and  India.   Eleven  acquisitions  were  completed,  at  a  total
investment  of  some £60 million.  At the same  time,  the  Timber
Treatment,  Aluminium  Chemicals  and  Irish  and  Belgian   Fuels
operations were sold.

Reported Results
The  strong  performance  achieved  in  the  first  half  of  1999
continued throughout the second half.  Currency translation had  a
marginally  positive  effect, benefiting  turnover  and  operating
profit  from  continuing businesses by some £40 million  and  £3.7
million respectively.  Following the reorganisation of Castrol  in
1998,  business  and expense reallocations amongst  the  different
Castrol  business  streams reduced Industrial's  and  Commercial's
reported  1999  profits  by  some £2.5 million  and  £3.5  million
respectively, and increased principally Consumer accordingly.

Business Results
Castrol  Consumer increased volumes by three per cent,  continuing
to  gain  market  share worldwide.  Operating profit  improved  to
£170.0   million.    Europe  achieved  higher  profits,   a   good
performance  in difficult market conditions.  Germany showed  some
improvement,  whilst  Eastern Europe recovered  well  from  1998's
Russian  crisis.  North America recorded excellent  results,  with
significant volume gains.  Castrol is the brand leader in the 'Do-
it-yourself'  sector and is penetrating the growing 'Do-it-for-me'
sector.   Investment in this sector will continue  in  the  coming
year.  Asia Pacific profits rose sharply, particularly in Thailand
and  Malaysia.   India  continued  to  perform  strongly,  as  did
Australia  and  Japan.  Investment in China was  maintained  at  a
similar  level  to 1998 and volumes there are continuing  to  grow
rapidly.  Elsewhere, good performances in Africa and South America
maintained  profit at a similar level to 1998 despite business  in
Turkey being depressed by the devastating earthquakes.

In  1999,  Consumer's margins benefited from a fall  in  base  oil
prices at the start of the year.  Since then, base oil prices have
been  increasing sharply, but Consumer is confident these  can  be
offset  through  a  combination of price increases  and  operating
efficiencies.

In  November, a global partnership with BMW was announced covering
research   and   development,  first  fill,   motorsport   and   a
recommendation  that  Castrol is used by all  BMW  group  car  and
motorcycle  dealers.  Today a long term partnership  with  Hyundai
has  been  announced.  Customer partnerships allied to  innovative
marketing and service concepts will continue to drive market share
and  top line growth.  Brand investment to support these and other
initiatives is being stepped up.

Castrol Industrial maintained underlying profit, despite difficult
markets  in Europe and £3 million costs associated with exiting  a
non-core area in North America.  India and East Asia achieved good
growth,  and new 'Chemical Management Service' contracts  continue
to  be  won,  including the first with Ford in  the  US.   Several
projects  were started, to reduce costs significantly and  improve
operating efficiencies.

Castrol Marine improved operating profit significantly as a result
of  recovery  in  Europe  and an improved  performance  from  Asia
Pacific.   However,  Castrol Marine is  finding  it  difficult  to
recover raw material increases through price rises, as the  market
is  intensely  competitive  and freight  rates  remain  very  low.
Castrol Commercial's underlying profit improved, with the European
and  Asia  Pacific businesses performing well.   The  large  North
American  operation's profits declined, but a  recovery  plan  has
been  put  in  place.  The priority for Castrol Commercial  is  to
improve margins.

Foundry  increased profit and achieved improved  margins,  despite
difficult  conditions in Brazil and the steel foundry segments  in
Europe  and  North  America.  Asia Pacific, in  particular  Korea,
performed  well  ahead  of 1998, and India  benefited  from  major
rationalisation.  In 2000, the Foundry results will  be  adversely
impacted  by  unrecovered  overheads  relating  to  the  Aluminium
business  which  was  disposed of in August  1999.   A  number  of
strategic  growth initiatives are currently being  pursued,  which
will be supported by revenue investment.

Construction had an excellent year, with a strong recovery in Asia
Pacific,   and   a  good  performance  in  Europe  following   the
restructuring of the UK business.  The Middle East achieved higher
profit  and  market  share despite difficult conditions  in  Saudi
Arabia.   The  acquisition  of  two European  businesses  provided
geographic  expansion, as well as additional technology  which  is
now being rolled out to Fosroc's traditional areas of strength  in
the  Middle  East  and  Asia.  Investment  in  further  geographic
expansion, including Turkey and the CIS, will temper profit growth
in   2000,  but  is  in  line  with  Construction's  objective  of
exploiting opportunities in emerging markets.

Printing maintained excellent margins and increased profit despite
the  impact of the continued strength of sterling on its UK export
business.   US profit suffered from a decline in the key  graphics
segment,  but demand appeared to be improving towards the  end  of
the  year.   Investment to penetrate new markets, such as  digital
printing, and in geographic expansion is being increased.

Releasants  had an excellent year.  North America was particularly
strong,  and Asia Pacific achieved significant increases in  sales
and  margins.   Continued weakness in Europe has  been  addressed.
Steel  had  a  reasonable year in difficult markets.  The  radical
reshaping  of  the  business to improve margins  significantly  is
almost  complete.  In Specialities, Mining and Investment  Casting
continued   to   make   progress,  Wax   and   Cables   maintained
profitability,  but  there was an operating loss  in  the  Ceramic
Welding business where corrective action is under way.

Operating  profit  from  the  Fuels  business  in  Australia   was
maintained at 1999 levels, in an exceptionally competitive market.
Just  over 50 sites have been leased to the Australian petrol  and
convenience  store group, 7-Eleven, which will  provide  a  stable
cash  flow while the future of the wholesaling operation and  some
50   directly-managed  sites  is  considered.   Burmah   Castrol's
interest in the Qadirpur gasfield in Pakistan will be sold once an
appropriate price can be achieved.

Financial Position
As  a result of the return of capital to shareholders, net gearing
rose  to  87 per cent (76 per cent on a net borrowing only basis),
but interest cover remains strong, at 11 times.

There  was  a  net  cash  outflow,  before  management  of  liquid
resources and financing, of £48 million.  However, after adjusting
for  the  cash impact of operating exceptional items, acquisitions
and disposals, there was a cash inflow from ordinary operations of
£29 million in 1999.

Exceptional Items
Exceptional costs of some £42 million were incurred in respect  of
business efficiency programmes.  A net exceptional loss of some £8
million  arose following the sale of the Irish and Belgian  Fuels,
Timber   Treatment  and  Aluminium  businesses.    As   previously
announced,  following  a  Brazilian  Supreme  Court  judgement,  a
provision  of  £14 million has been made for turnover-based  taxes
and  associated charges relating mainly to prior years.   In  line
with  the company's usual practice, the group's land and buildings
were revalued towards the end of the year. This resulted in a  net
write-down  in  balance  sheet value  of  £6  million,  which  was
accounted  for by a combination of a £13 million increase  in  the
revaluation  reserve and a £19 million exceptional charge  in  the
profit and loss account.

Value Creation
As  announced in 1999, a key element in Burmah Castrol's drive  to
create  shareholder value is the implementation  of  a  series  of
business  efficiency programmes covering all principal businesses.
Some  projects are well under way, others are being initiated this
year.   To  date,  there  has been substantial  reorganisation  of
several  businesses  in Europe, and widespread rationalisation  of
Foundry's and Steel's manufacturing facilities in India.  The  aim
is  to  progress  all projects as rapidly as  possible.   At  this
stage, the cumulative benefits expected are estimated to be of the
order of £30 million per annum in 2000, rising to  £60 million per
annum  in  2002  and  increasing  thereafter.   Exceptional  costs
totalling £150 million over the period are anticipated.

Dividends
The  Board is recommending a final cash dividend for 1999 of  31.9
pence  per  share, giving a total dividend for the  year  of  47.3
pence,  up  10 per cent on 1998.  The company intends to  maintain
its progressive dividend policy.

Strategy & Outlook
Tim Stevenson, Chief Executive of Burmah Castrol, comments:

'Our  strategy is already producing excellent results and will  be
vigorously pursued.

We  will continue to invest in our principal businesses to  ensure
they build leading positions in their global markets.  We will put
substantial investment behind the Castrol brand.  Castrol lies  at
the heart of Burmah Castrol and the Castrol brand remains a source
of   major  growth,  including  e.commerce  initiatives.   We  are
pursuing acquisition opportunities within our core business areas.
We  will  also  divest businesses to which we  cannot  add  value,
either  returning the cash generated to shareholders, or using  it
for expansion.

We   will   drive  forward  our  business  efficiency  programmes.
Substantial cost reductions will be effected across all businesses
through  purchasing,  supply chain and back office  restructuring.
We are also working to improve further returns on capital employed
through   alternative  methods  of  financing   our   trade   loan
programmes.

The  outlook  is  encouraging.  Given a relatively benign  trading
environment,  we  expect  to deliver another  strong  performance.
Earnings  per share will again benefit from last year's return  of
capital.

We  are  starting  the  new millennium  on  a  strong  base.   Our
strengths lie in the Castrol brand, the competitive advantages our
principal businesses enjoy through their proven ability  to  offer
their  customers  innovative high added value services,  our  wide
international  spread,  and effective management  of  our  balance
sheet and cash flows.  2000 promises to be another active year, to
which we are looking forward with confidence.'



GROUP PROFIT & LOSS ACCOUNT
                             Year to 31.12.99
                      Continuing   Discontinued  Exceptional     Total
Notes                 operations     operations        items
                                                     (note 4)
                       £ million      £ million    £ million  £ million

     Turnover net
     of duties           2,907.8           35.9                2,943.7

     Cost of sales      (1,611.6)         (22.7)              (1,634.3)
     -----------------------------------------------------------------
     Gross profit        1,296.2           13.2                1,309.4
     Net operating
     expenses           (1,015.4)         (12.6)       (77.4) (1,105.4)
     -----------------------------------------------------------------
3    Operating profit      280.8            0.6        (77.4)    204.0
     Income from fixed
     asset investments       1.5            0.1                    1.6
     Share of
     operating profit
     in associates           1.6                                   1.6
     -----------------------------------------------------------------
     Total operating
     profit                283.9            0.7        (77.4)    207.2
4    Non-operating
     exceptional items                                  (6.6)     (6.6)
     -----------------------------------------------------------------
     Profit before
     interest              283.9            0.7         (84.0)   200.6
5    Interest              (24.9)          (0.1)                 (25.0)
     -----------------------------------------------------------------
     Profit before
     taxation              259.0            0.6         (84.0)   175.6
6    Taxation              (92.0)          (0.1)         12.2    (79.9)
     -----------------------------------------------------------------
     Profit after
     taxation              167.0            0.5         (71.8)    95.7
     Minority interests    (23.4)                         0.7    (22.7)
     -----------------------------------------------------------------
     Profit attributable
     to shareholders       143.6            0.5         (71.1)    73.0
7    Dividends             (82.7)                                (82.7)
     -----------------------------------------------------------------
     Retained
     (loss)/ profit         60.9            0.5         (71.1)    (9.7)
     -----------------------------------------------------------------

8    Earnings per
     ordinary share         76.7p           0.3p        (38.0)p   39.0p
     -----------------------------------------------------------------
     Fully diluted
     earnings per
     ordinary share         76.3p           0.3p        (37.8)p   38.8p
     -----------------------------------------------------------------
     Interest cover
     (times)                11.4                                   8.0
     -----------------------------------------------------------------
     Taxation as a
     percentage of
     profit before
     taxation                 -----35.5%-----                     45.5%
     -----------------------------------------------------------------

GROUP PROFIT & LOSS ACCOUNT

                             Year to 31.12.98
                      Continuing   Discontinued  Exceptional     Total
Notes                 operations     operations        items
                                                     (note 4)
                       £ million      £ million    £ million  £ million

     Turnover net
     of duties           2,761.9           75.2                2,837.1

     Cost of sales      (1,538.6)         (47.5)              (1,586.1)
     -----------------------------------------------------------------
     Gross profit        1,223.3           27.7                1,251.0
     Net operating
     expenses             (976.4)         (22.0)       (55.1) (1,053.5)
     -----------------------------------------------------------------
3    Operating profit      246.9            5.7        (55.1)    197.5
     Income from fixed
     asset investments       3.0                                   3.0
     Share of
     operating profit
     in associates           1.6            1.6                    3.2
     -----------------------------------------------------------------
     Total operating
     profit                251.5            7.3        (55.1)    203.7
4    Non-operating
     exceptional items                                  40.8      40.8
     -----------------------------------------------------------------
     Profit before
     interest              251.5            7.3         (14.3)   244.5
5    Interest               (9.2)          (0.3)                  (9.5)
     -----------------------------------------------------------------
     Profit before
     taxation              242.3            7.0         (14.3)   235.0
6    Taxation              (89.0)          (0.7)          2.9    (86.8)
     -----------------------------------------------------------------
     Profit after
     taxation              153.3            6.3         (11.4)   148.2
     Minority interests    (19.5)          (0.1)                 (19.6)
     -----------------------------------------------------------------
     Profit attributable
     to shareholders       133.8            6.2         (11.4)   128.6
7    Dividends             (90.9)                                (90.9)
     -----------------------------------------------------------------
     Retained
     (loss)/profit          42.9            6.2         (11.4)    37.7
     -----------------------------------------------------------------

8    Earnings per
     ordinary share         63.2p           2.9p         (5.4)p   60.7p
     -----------------------------------------------------------------
     Fully diluted
     earnings per
     ordinary share         62.9p           2.9p         (5.4)p   60.4p
     -----------------------------------------------------------------
     Interest cover
     (times)                27.3                                  25.7
     -----------------------------------------------------------------
     Taxation as a
     percentage of
     profit before
     taxation                 -----36.0%-----                     36.9%
     -----------------------------------------------------------------



SUMMARY GROUP BALANCE SHEET

                                              31.12.99    31.12.98
Notes                                        £ million   £ million

9    Fixed assets                                883.1      864.6
     -------------------------------------------------------------

10   Current assets                            1,104.3    1,163.0
11   Creditors - amounts falling
     due within one year                        (794.9)    (781.2)
     -------------------------------------------------------------
     Net current assets                          309.4      381.8
     -------------------------------------------------------------
     Total assets less current
     liabilities                               1,192.5    1,246.4

12   Creditors - amounts falling due
     after more than one year                   (469.7)    (260.9)
     Provisions for liabilities and charges     (133.4)    (134.7)
     -------------------------------------------------------------
     Net assets                                  589.4      850.8
     -------------------------------------------------------------

     Capital and reserves
     Called up share capital                      75.0      213.4
     Reserves                                    445.7      574.8
     -------------------------------------------------------------
     Shareholders' funds                         520.7      788.2
     Minority interests                           68.7       62.6
     -------------------------------------------------------------
                                                 589.4      850.8
     -------------------------------------------------------------


                                                     %          %

     Net gearing:
     Net borrowings                                 76          9
     Obligations recognised
     per FRS 5                                      11         10
     -------------------------------------------------------------
                                                    87         19
     -------------------------------------------------------------

                                             £ million  £ million
     Gearing calculated on:
13   Net borrowings                              397.4       72.7
     Obligations recognised
     per FRS 5                                    56.9       76.7
     -------------------------------------------------------------
                                                 454.3      149.4
     -------------------------------------------------------------

SUMMARY GROUP CASH FLOW STATEMENT

                                                  1999        1998
Notes                                        £ million   £ million

14   Net cash inflow from operating
     activities                                  307.5      273.1
     Dividends received from associates            1.1        0.9

     Returns on investment and servicing
     of finance                                  (38.1)     (28.4)
     Taxation                                    (80.7)    (102.1)
     Capital expenditure                        (121.0)    (144.0)
     Acquisitions                                (56.8)     (15.9)
     Disposals                                    30.3       81.9
     Equity dividends paid                       (90.3)     (85.7)
     -------------------------------------------------------------
     Cash outflow before management of
     liquid resources and financing              (48.0)     (20.2)

     Management of liquid resources               59.4       25.8
     Financing                                   (12.0)     (31.3)
     -------------------------------------------------------------
     Decrease in cash in the year                 (0.6)     (25.7)
     -------------------------------------------------------------

     Reconciliation of net cash flow
     to movement in net debt

     Net debt at 1 January                      (149.4)    (116.9)
     Decrease in cash in the year                 (0.6)     (25.7)
     (Increase)/decrease in debt                (263.3)      18.4
     Decrease in liquid resources                (59.4)     (25.8)
     Net debt sold through acquisitions
     and disposals of businesses                   0.1
     Decrease in FRS 5 and finance lease
     obligations                                  11.3        8.1
     Exchange                                      7.0       (7.5)
     -------------------------------------------------------------
     Net debt at 31 December                    (454.3)    (149.4)
     -------------------------------------------------------------



     Memorandum: cash flow from
     ordinary operations
     Net cash flow before management of
     liquid resources and financing              (48.0)     (20.2)
     Adjustments for net cash flows on:
     Exceptional items                            50.2       33.9
     Acquisitions                                 56.8       15.9
     Disposals                                   (30.3)     (81.9)
     -------------------------------------------------------------
     Cash flow from ordinary operations           28.7      (52.3)
     -------------------------------------------------------------


SEGMENTAL ANALYSIS

                                       Turnover  Profit before taxation
                      ------------------------   ----------------------
                            1999           1998         1999      1998
                       £ million      £ million    £ million  £ million

     CLASS OF BUSINESS
     Continuing operations:
     -----------------------------------------------------------------
     Castrol             1,916.3        1,816.4        213.0     187.4
     Chemicals             747.5          725.9         78.6      71.7
     Fuels                 237.6          213.0          1.9       1.7
     Energy Investments      6.4            6.6          4.0       4.0
     Central Management                                (13.6)    (13.3)
     -----------------------------------------------------------------
                         2,907.8        2,761.9        283.9     251.5
     Discontinued
     operations             35.9           75.2          0.7       7.3
                                                      -----------------
     Total operating
     profit before
     exceptional items                                 284.6     258.8
     Exceptional items                                 (84.0)    (14.3)
     Interest                                          (25.0)     (9.5)
     -----------------------------------------------------------------
                         2,943.7        2,837.1        175.6     235.0
     -----------------------------------------------------------------

     GEOGRAPHICAL AREA
     Continuing
     operations:
     United Kingdom
     (note (i))            262.6          271.1        (65.1)    (66.5)
     Europe
     (excluding UK)        736.7          735.9        108.2     101.3
     Africa                 72.7           68.7          9.2       8.3
     The Americas          915.2          855.0        118.7     112.0
     Asia                  539.7          486.9         94.4      76.2
     Australasia           380.9          344.3         18.5      20.2
     -----------------------------------------------------------------
                         2,907.8        2,761.9        283.9     251.5
     Discontinued
     operations             35.9           75.2          0.7       7.3
                                                      -----------------
     Operating profit
     before exceptional
     items                                             284.6     258.8
     Exceptional items                                 (84.0)    (14.3)
     Interest                                          (25.0)     (9.5)
     -----------------------------------------------------------------
                         2,943.7        2,837.1        175.6     235.0
     -----------------------------------------------------------------

     BY MANAGEMENT AREA
     Castrol:
     Consumer            1,124.4        1,077.7        170.0     144.9
     Industrial            470.6          439.9         27.2      30.0
     Marine                138.3          138.5         16.8      12.8
     Commercial            183.0          160.3         10.1      11.5
     Central costs                                     (11.1)    (11.8)
     -----------------------------------------------------------------
                         1,916.3        1,816.4        213.0     187.4
     -----------------------------------------------------------------

     Chemicals:
     Foundry               233.5          238.1         29.3      27.3
     Construction          112.9          105.8         13.4       9.5
     Printing Inks         124.2          118.4         18.5      18.1
     Releasants             60.2           52.7          8.0       5.1
     Steel                  64.0           67.7          3.7       3.9
     Other businesses      152.7          143.2         10.0      12.5
     Central costs                                      (4.3)     (4.7)
     -----------------------------------------------------------------
                           747.5          725.9         78.6      71.7
     -----------------------------------------------------------------

(i) UK operating profit is after deducting central management,
marketing and research expenditure.

OTHER PRIMARY STATEMENTS

                                                  1999        1998
     STATEMENT OF GROUP TOTAL RECOGNISED     £ million   £ million
     GAINS AND LOSSES
     -------------------------------------------------------------
     Profit for the year attributable
     to shareholders                              73.0      128.6
     Unrealised (loss)/gain on fixed asset
     investments                                  (0.1)       0.1
     Surplus on revaluation of land and
     buildings                                    11.4
     Currency translation differences             (9.6)      (7.3)
     -------------------------------------------------------------
     Total recognised gains and losses
     for the year                                 74.7      121.4
     -------------------------------------------------------------

                                                  1999        1998
     RECONCILIATION OF MOVEMENT              £ million   £ million
     IN SHAREHOLDERS' FUNDS
     -------------------------------------------------------------
     Profit for the year                          73.0      128.6
     Dividends                                   (82.7)     (90.9)
     -------------------------------------------------------------
                                                  (9.7)     37.7
     Other recognised gains/(losses)
     relating to the year - net                    1.7       (7.2)
     New share capital subscribed                  5.7        6.2
     Return of capital                          (281.0)
     Redemption of preference shares                        (19.5)
     Elimination of goodwill                      (0.2)      (1.2)
     Write-back of goodwill relating
     to businesses sold                           16.0        9.2
     -------------------------------------------------------------
     Net (decrease)/increase in shareholders'
     funds                                      (267.5)      25.2
     Opening shareholders' funds                 788.2      763.0
     -------------------------------------------------------------
     Closing shareholders' funds                 520.7      788.2
     -------------------------------------------------------------



NOTES

1    Statutory accounts
     
     The above financial information for the year ended31
     December 1999 does not constitute statutory accounts.  It is
     an extract from the 1999 group accounts, approved by a duly
     appointed and authorised committee of the Board of Directors
     on 25 February 2000, but not yet delivered to the Registrar
     of Companies; the report of the auditors on those accounts
     was unqualified.
     
     
2    Exchange rates
     
     The exchange rates against sterling having the most
     significant effect on these accounts are:
     
                                  1999                1998
                            Average   Closing   Average   Closing
     U.S. Dollar               1.62      1.62      1.66      1.66
     Euro                      1.52      1.60         -      1.42
     Deutsche Mark             2.97      3.13      2.92      2.77
     Indian Rupee             69.70     70.62     68.36     70.70
     Australian Dollar         2.52      2.46      2.63      2.71
     Japanese Yen            182.65    164.71    216.97    187.67
     Malaysian Ringgit         6.15      6.17      6.46      6.32
     Thai Baht                61.06     60.03     68.38     60.45
     ------------------------------------------------------------
     
3    Operating profit
     Operating profit is
     stated after charging:
                                                   1999      1998
                                              £ million £ million
     
     Depreciation                                  74.6     74.3
     Amortisation of trade loans                   22.7     17.2
     Research and development expenditure          40.5     42.6
     Auditors' remuneration                         2.6      2.5
     ------------------------------------------------------------
     
4    Exceptional items
(a)  Operating exceptional items
                                                   1999      1998
                                              £ million £ million
     
     Business restructuring (note (i))            (42.0)   (22.8)
     Brazilian taxes (note (ii))                  (14.3)
     Deficit on revaluation of land
     and buildings (note (iii))                   (18.8)
     Litigation settlement (note (iv))             (2.3)
     Write down of assets in Indonesia                      (7.8)
     Write down of European Information System             (24.5)
     ------------------------------------------------------------
                                                  (77.4)   (55.1)
     ------------------------------------------------------------


       To clarify the effect on the results of the group, the
       following costs are disclosed as exceptional items in the
       profit and loss account to the extent that the group has
       committed to the expenditure.
       
(i)    As identified in the 1998 accounts, costs are being
       incurred in restructuring our principal businesses and
       supply chain operations.  Expenditure mainly relates to the
       cost of redundancies and consultancy.
(ii)   Following a Brazilian Supreme Court ruling, provision has
       been made for turnover-based taxes and associated charges
       mainly relating to prior years.
(iii)  The group's land and buildings were revalued at 31 December
       1999. For all properties valued at amounts below their
       depreciated historical cost net book value, the deficit has
       been charged to the profit and loss account.  To the extent
       that the valuation reversed previous write-downs to below
       depreciated historical cost net book value, the profit and
       loss account has been credited. All other revaluation
       adjustments have been dealt with through the statement of
       recognised gains and losses.
(iv)   A claim for compensation for infringement of patent rights,
       brought by the former owners of one of the group's
       Aluminium businesses, was settled during the year.
       


(b)  Non-operating exceptional items
     
     
                                                   1999      1998
                                              £ million £ million
     
     (Loss)/profit on
     disposal of businesses                        (7.3)    37.4
     Provision made against
     carrying value in
     prior years                                    1.3      5.3
     ------------------------------------------------------------
     Net (loss)/profit                             (6.0)    42.7
     Provision for loss on
     disposal of businesses                                 (1.3)
     Loss on disposal of
     fixed assets                                  (0.6)    (0.6)
     ------------------------------------------------------------
                                                   (6.6)    40.8
     ------------------------------------------------------------
     
     The net loss on the disposal of businesses for the year ended
     31 December 1999 arises principally from the disposal during
     the year of a fuels business in Ireland (profit of £4.4
     million), the Timber Treatments business (loss of £0.5
     million), the Aluminium business (loss of £5.0 million), and
     a fuels business in Belgium (loss of £6.6 million).  The loss
     on disposal is after writing back goodwill of £16.0 million.
     The profit on disposal of businesses in 1998 is in respect of
     the disposal of LNG transportation associated undertakings,
     Simoniz Car Care and a number of Chemicals businesses.
     
5    Interest
                                                   1999      1998
                                              £ million £ million
     
     Interest payable and
     similar charges                               34.9     24.7
     Interest receivable
     and similar income                            (9.9)   (15.2)
     ------------------------------------------------------------
                                                   25.0      9.5
     ------------------------------------------------------------
     
6    Taxation
                                    1999                     1998
                    --------------------   ----------------------
                    Before  Except- Total  Before  Except-  Total
                    except-  ional         except-  ional
                     ional   items          ional   items
                     items                  items
                        £m      £m     £m      £m      £m     £m
     
     The charge for
     the year
     comprises:
     UK corporation
     tax at 30.25%    35.2    (3.1)  32.1    65.2     1.6   66.8
     Relief for
     overseas
     taxation        (28.4)         (28.4)  (39.7)         (39.7)
     -------------------------------------------------------------
                       6.8    (3.1)   3.7    25.5     1.6   27.1
     Advance
     corporation tax                        (11.5)         (11.5)
     Overseas
     taxation         85.8    (9.1)  76.7    76.5    (4.5)  72.0
     -------------------------------------------------------------
                      92.6   (12.2)  80.4    90.5    (2.9)  87.6
     Prior year
     adjustments      (0.5)          (0.5)   (0.8)          (0.8)
     -------------------------------------------------------------
                      92.1   (12.2)  79.9    89.7    (2.9)  86.8
     -------------------------------------------------------------

7    Dividends
     
                                                1999        1998
                                           £ million   £ million
     
     Preference dividends
     on non-equity shares                                    0.5
     Ordinary dividends
     on equity shares:
     Interim dividend of
     15.4p per 42p
     ordinary share (1998,
     Foreign Income
     Dividend 14.0p)                             26.9       29.6
     Proposed final
     dividend of 31.9p per
     42p ordinary share
     (1998, 29.0p)                               55.8       60.8
     ------------------------------------------------------------
                                                 82.7       90.9
     ------------------------------------------------------------
     
     The  final dividend of 31.9 pence per ordinary share will  be
     paid  on 7 July 2000 to ordinary shareholders on the register
     at  the close of business on the record date, 10 March  2000.
     The corresponding ex-dividend date is 6 March 2000.
     
     The recommended total (interim and final) dividend of 47.3
     pence for 1999 represents an increase of 4.3 pence or 10%
     over the previous year.
     

8    Earnings per share
                                     1999                    1998
                   ---------------------   ----------------------
                   Continuing       After  Continuing       After
                   operations exceptional  operations exceptional
                                    items                   items
     Basic earnings
     per ordinary
     share is
     calculated as
     follows:
     Profit for the
     year
     attributable to
     shareholders, net
     of preference
     share dividend   £143.6m       £73.0m     £133.3m    £128.1m
     Weighted average
     number of
     ordinary shares
     in issue          187.3m       187.3m      211.0m     211.0m
     Earnings per
     ordinary share     76.7p        39.0p       63.2p      60.7p
     ------------------------------------------------------------

9    Fixed assets
     
                                              31.12.99   31.12.98
                                             £ million  £ million
     
     Net book values:
     Intangible                                   64.8      24.4
     Tangible                                    531.0     547.4
     Investments                                 287.3     292.8
     -------------------------------------------------------------
                                                 883.1     864.6
     -------------------------------------------------------------

10   Current assets
     
                                              31.12.99   31.12.98
                                             £ million  £ million
     
     Stocks                                      285.3     266.3
     Debtors                                     638.5     641.6
     Investments                                  86.5     158.6
     Cash at bank and in hand                     94.0      96.5
     -------------------------------------------------------------
                                               1,104.3   1,163.0
     -------------------------------------------------------------

11   Creditors - amounts falling due within one year
     
                                              31.12.99   31.12.98
                                             £ million  £ million
     
     Borrowings                                  169.6     134.6
     Obligations to banks
     under trade loan
     guarantees                                   10.3      20.4
     Bills discounted with
     recourse                                      1.2       1.6
     Trade creditors                             283.9     272.0
     Dividends                                    82.8      90.4
     Other creditors                             247.1     262.2
     -------------------------------------------------------------
                                                 794.9     781.2
     -------------------------------------------------------------

12   Creditors - amounts falling due after more than one year
     
                                              31.12.99   31.12.98
                                             £ million  £ million
     
     Borrowings                                  406.7     191.0
     Obligations to banks
     under trade loan
     guarantees                                   45.4      54.7
     Other creditors                              17.6      15.2
     -------------------------------------------------------------
                                                 469.7     260.9
     -------------------------------------------------------------

13   Analysis of net borrowings
     
                                              31.12.99   31.12.98
                                             £ million  £ million
     
     Cash at bank and in
     hand                                         94.0      96.5
     Current asset
     investments                                  86.5     158.6
     Short-term
     borrowings                                 (169.6)   (134.6)
     Long-term
     borrowings                                 (406.7)   (191.0)
     Net obligation under
     finance leases                               (1.6)     (2.2)
     -------------------------------------------------------------
                                                (397.4)    (72.7)
     -------------------------------------------------------------

     
14   Reconciliation of operating profit to operating cash flow
     
                                    1999                     1998
                    --------------------   ----------------------
                  Contin-  Discont- Total  Contin- Discont- Total
                    uing     inued           uing    inued
                      £m        £m     £m      £m       £m    £m
     
     Operating
     profit        280.8       0.6  281.4   246.9      5.7 252.6
     Income from
     fixed asset
     investments     1.5       0.1    1.6     3.0            3.0
     Cash effect of
     exceptional
     items         (50.2)           (50.2)  (33.9)         (33.9)
     Depreciation
     charges        96.5       0.8   97.3    89.9      1.6  91.5
     Changes in
     stock, debtors
     and creditors (34.6)     (2.0) (36.6)  (32.4)    (3.4)(35.8)
     Other non-cash
     items          14.0             14.0    (4.1)    (0.2) (4.3)
     -------------------------------------------------------------
     Net cash
     inflow from
     operations    308.0      (0.5) 307.5   269.4      3.7 273.1
     -------------------------------------------------------------

15   Post balance sheet events
     
     On  17  January  2000, the group acquired  Reax  Industria  e
     Commercio Ltda., a Construction chemicals company in  Brazil,
     for a consideration of £12 million.