Interim Results - Operating Profit Up 50%

Acal PLC
6 December 1999

                                       
      Unaudited Interim Results for the Six Months to 30th September 1999


The key points are:

*   Group turnover up 41% to £110.6m (1998: £78.2m)

*   Turnover from continuing operations up 14% to £88.9m (1998: £78.2m)

*   Operating profit from subsidiary undertakings up 50% at £6.2m (1998:      
    £4.1m),and excluding the contribution from Sedgemoor, up 11%  at £4.6m    
    (1998: £4.1m)

*   Headline Earnings per share 14.7p (1998: 22.3p)

*   Underlying Earnings per share (before amortisation of goodwill and
    exceptional profits from investments) up 36% at 15.2p (1998: 11.2p)

*   Interim dividend per share up 12% at 4.6p (1998: 4.1p)


Commenting on the results, John Curry, Executive Chairman of Acal plc said:

'The  strong  organic  growth  from  our existing  operations  has  been  most
encouraging.   The integration of Sedgemoor continues on schedule and its
business is performing broadly in line with expectations.   We expect the bulk
of  the business to show continuing growth in the second half.  We remain well
placed to face the challenges ahead and are positive about the current
economic climate and our long term future.'

Contact:

John Curry, Chairman, Tel: [phone]

Jim Virdee, Finance Director, Tel: [phone]
               
Fergus Wylie, Cubitt Consulting, Tel: [phone]


Notes to Editors:

1   The Acal Group is a leading European, value-added distributor providing
specialist design-in, sales and marketing services for international suppliers
in the fields of Electronic Components, Information Technology Products,
Personal Computer Spare Parts and Industrial Controls.  Its value-added
philosophy and geographic coverage enables Acal to provide specialist
knowledge and support to customers on a pan-European basis.

2  Design-in is the process by which Acal's sales engineers work with
customers and suppliers to procure components which meet the specific
technical and performance needs of the customers.

3  Acal has operating companies in the UK, Netherlands, Belgium, Germany,
France, Italy, Scandinavia and the USA.



                             Chairman's Statement

I am pleased to report that turnover and operating profit for the first half
year are ahead of last year, in spite of a difficult economic climate, showing
the benefit of our added value philosophy.

Turnover has increased from £78.2 million to £110.6 million, up 41%.  Organic
growth provided an increase of 14% (after a 1% negative currency translation
impact) and the acquisition of Sedgemoor provided the balance.  Operating
profit from subsidiary undertakings increased from £4.1 million to £6.2
million, an increase of 50%.  Of this increase of £2.1 million, £1.6 million
was contributed by Sedgemoor, thus the continuing business showed growth of
11%.

Profit before tax is down from £7.2 million to £5.9 million.  After effective
tax of 34% (35%), the headline earnings per share are 14.7p (22.3p).  This
reduction is due to goodwill amortisation, lower capital profits and income
from investments now sold.  The underlying earnings per share before these
items grew from 11.2p to 15.2p, an increase of 36%.

Following the acquisition of Sedgemoor, net debt at 30 September was £27.7
million, and interest cover at 12 times continues to be very healthy.


Acquisition of Sedgemoor

At the beginning of June 1999, Acal plc acquired Sedgemoor plc for £75 million
by the issue of 5.1 million shares and cash of £55 million.  The
reorganisation of Sedgemoor to fit Acal's existing operations is progressing
well and to plan.  The two head offices were merged in August, resulting in
the closure of Sedgemoor's head office and we are currently in the process of
restructuring two of the Sedgemoor companies.  One is being merged with an
Acal subsidiary and the other with a sister Sedgemoor subsidiary.  The
restructuring costs will show in the second half of this financial year.
These actions will produce savings and marketing benefits which will flow
through in the next financial year.

Shareholders will be pleased to know that the operating results of Sedgemoor
have been broadly in line with our expectations.


Review of Operations

In the UK we have seen order growth in excess of 10% in Electronic Components
year on year.  As yet this improving order position has not been fully
reflected in sales although there is an improving trend.  The pattern in
mainland Europe is similar to the UK, but the cycle seems to be lagging that
of the UK.

Whilst our Information Technology business has shown growth during the period,
orders have been affected by the Year 2000 issue, and we expect a resumption
of a more positive trend in the new calendar year.  The PC Parts business has
seen growth year on year, but that growth took place in the first quarter.
Our success in sales of in-warranty parts to dealers has led Compaq to
terminate the dealers' right to buy from us where Compaq has failed to meet
the service level needed.  This will affect our business in the short term and
will accelerate our efforts to develop the business and support of other
leading manufacturers.

In summary, as I indicated above, in local currency terms, we have seen
organic sales growth in total of approximately 15% - a satisfactory
achievement.


Dividend

The Board has declared an interim dividend of 4.6p net per share (4.1p), an
increase of 12%.  This will be paid on 1 February 2000 to shareholders on the
register on 17 December 1999.


Prospects

The bulk of the business should show continuing growth in the second half and
we remain very well placed to face the challenges ahead and are positive about
the current economic climate and our long term future.


John Curry
6th December 1999


                                       
                                   ACAL plc
                                       
                 Unaudited Summary Profit and Loss Account for
                     Six Months ended 30th September 1999

                                                             Year
                                       Six Months ended    ended 31
                                         30 September        March
                                                           (audited)
                                       1999        1998      1999
                                        £'000      £'000      £'000
TURNOVER                                                   
Continuing Business                    88,903     78,168    170,824
Acquisition                            21,724     -               -
                                      110,627     78,168    170,824
                                                           
OPERATING PROFIT                                           
Subsidiary Undertakings                 6,154      4,103      9,864
Income from investments                                                       
now sold                                    -      1,250      1,250
Group Share of Associated
Undertakings                              130        145        222

                                        6,284      5,498     11,336
Amortisation of goodwill                 (840)        (1)        (1)
                                                           
GROUP OPERATING PROFIT                                     
Continuing Business                     4,599      5,497     11,335
Acquisition                               845          -          -
                                        5,444      5,497     11,335
Net profit on disposal of                                  
investments                             
and tangible fixed assets               1,014      1,852      2,052
Loss on termination of                
operations                                  -          -       (391)
Net interest payable and                 
similar charges                          (556)      (116)       (45)
                                                           
PROFIT ON ORDINARY ACTIVITIES                              
BEFORE TAXATION
Continuing Business                     5,562      7,233     12,951
Acquisition                               340          -          -
                                        5,902      7,233     12,951
Tax on profit on ordinary                                  
activities:
United Kingdom                         (1,470)    (1,632)    (2,733)
Overseas                                 (769)      (864)    (1,819)
Associated undertakings                   (62)       (55)       (96)
                                       (2,301)    (2,551)    (4,648)
PROFIT ON ORDINARY ACTIVITIES                              
AFTER TAXATION                          3,601      4,682      8,303
                                                           
MINORITY INTERESTS -                      (81)      (186)      (540)
equity
                                                           
PROFIT ATTRIBUTABLE TO ORDINARY                              
SHAREHOLDERS                            3,520      4,496      7,763
                                                           
DIVIDENDS ON ORDINARY SHARES           (1,185)      (826)    (2,904)
                                                           
RETAINED PROFIT                         2,335      3,670      4,859
                                                           
EARNINGS PER SHARE                       14.7p      22.3p      38.5p
EARNINGS PER SHARE BEFORE                                  
GOODWILL AMORTISATION                    18.2p      22.3p      38.5p




                                   ACAL plc
                                       
                            Unaudited Balance Sheet
                           as at 30th September 1999

                                                           At 31
                                      At 30 September      March
                                                         (audited)
                                      1999        1998      1999
                                     £'000       £'000     £'000
FIXED ASSETS                                             
Intangible assets                    48,542         217       574
Tangible assets                       9,445       6,508     5,885
Investments                           2,577       1,952     2,945
                                     60,564       8,677     9,404
CURRENT ASSETS                                           
Stocks                               23,844      18,157    15,544
Debtors                              48,760      31,523    34,872
Cash at bank and in hand              4,851      14,148    14,128
                                     77,455      63,828    64,544
CREDITORS:                                               
Amounts falling due within one      
year                                (54,388)    (41,692)  (42,328)
                                                         
NET CURRENT ASSETS                   23,067      22,136    22,216
                                                         
TOTAL ASSETS LESS                                        
CURRENT LIABILITIES                  83,631      30,813    31,620
                                                         
CREDITORS:                                               
Amounts falling due after more      
than one year                       (26,072)     (1,213)     (904)
                                                         
PROVISIONS FOR LIABILITIES                               
AND CHARGES                          (4,995)       (436)     (402)
                                                         
NET ASSETS                           52,564      29,164    30,314
                                                         
CAPITAL AND RESERVES                                     
Called up share capital               1,287       1,007     1,007
Share premium account                35,504      13,539    13,539
Revaluation reserve                     313         333       323
Profit and loss account and other    15,460      12,713    13,566
reserves
                                                         
Shareholders' Funds                  52,564      27,592    28,435
                                                         
Minority interests (all equity)           -       1,572     1,879
                                                         
                                     52,564      29,164    30,314
                                                         



                                       
                                   ACAL plc
                                       
                   Unaudited Summary Cash Flow Statement for
                     Six Months ended 30th September 1999
                                       

                                                            Year
                                    Six Months ended 30   ended 31
                                         September         March
                                                         (audited)
                                      1999        1998      1999
                                     £'000       £'000     £'000
OPERATING ACTIVITIES                                     
Operating profit                       5,444       5,497    11,335
Depreciation and other non cash        
items                                  2,081       1,105     2,270
Share of profits of associates          (130)       (145)     (222)
Increase in working capital           (6,014)     (2,432)     (945)
                                                          
NET CASH INFLOW FROM OPERATING                            
ACTIVITIES                             1,381       4,025    12,438
                                                         
Net interest paid                       (556)       (116)      (45)
Tax paid                                (920)     (1,230)   (4,370)
Net expenditure on tangible fixed                        
assets and investments                (1,686)     (1,279)   (2,187)
Net cash flow from acquisitions      
and disposals                        (32,813)      4,153     3,270
Equity dividends paid                 (2,069)     (1,470)   (2,296)
                                                         
NET CASH (OUTFLOW)/INFLOW BEFORE     
FINANCING                            (36,663)      4,083     6,810
                                                         
Increase/(decrease) in debt and       
finance leases                        25,192        (102)     (263)
Issue of share capital                    55          33        33
                                                         
NET (DECREASE)/INCREASE IN CASH      (11,416)      4,014     6,580
  



Reconciliation of net cash flow to movement in net debt/cash                  
                                                                           
NET (DECREASE)/INCREASE IN CASH      (11,416)      4,014     6,580
                                                
Cash (inflow)/outflow from                      
(increase)/decrease in debt and      
lease financing                      (25,192)        102       263
Lease financing acquired with
subsidiary                               (22)          -         -
Translation differences                  (29)        (97)      (55)


                                                
MOVEMENT IN NET DEBT/CASH            (36,659)      4,019     6,788
                                                
Net cash at beginning of the           
period                                 8,973       2,185     2,185
                                                
Net (debt)/cash at end of the        
period                               (27,686)      6,204     8,973






Statement of Total Recognised Gains and Losses
           
                                                         Year ended
                                    Six Months ended 30   31 March
                                         September        (audited)
                                      1999        1998      1999
                                     £'000       £'000      £'000
                                                              
Profit attributable to                
shareholders                          3,520        4,496      7,763
Net (loss)/gain on currency            
translation                            (432)         878        511
Total recognised gains and losses                        
for the financial period              3,088        5,374      8,274




NOTES:

1  The financial information set out above does not constitute the company's
statutory accounts for the year ended 31st March 1999, but is derived from
those accounts.  Statutory accounts for 1999 have been delivered to the
Registrar of Companies.  The auditors have reported on those accounts; their
report was unqualified and did not contain a statement under section 237 (2)
or (3) of the Companies Act 1985.

2  The interim dividend is payable on 1 February 2000 to shareholders on the
register on 17 December 1999.

3  Earnings per share for the half year to 30 September 1999 have been
calculated on the profit attributable to ordinary shareholders of £3,520,000
using the weighted average number of ordinary shares in issue during the
period.

4  Details of the Group's programme in relation to Year 2000 compliance are
set out in the last annual report.  Implementation has continued and there is
no change to the position described in the annual report.

5  The Company's interim report is being sent to shareholders by post.  Copies
will also be available from:

           Acal plc, 39 Guildford Road, Lightwater, Surrey GU18 5SA

          The interim results will not be advertised in any newspaper