Interim Results

Lawrence PLC
06 December 2004


                                  Lawrence plc

            Interim Results for the six months to 30 September 2004

Highlights
          
     •    Pre-tax profit from continuing operations up 30% to £1.3m (2003:£1.0m)

     •    Interim dividend up 10% to 1.4 pence per share (2003:1.275 pence per 
          share)

     •    Cash position robust - £11.5m net (2003:£0.8m)

     •    Acquisition of the 50 per cent not already owned of ECO Animal Health
          after end of period

Peter Lawrence, Chairman of Lawrence plc, commented:

'The period under review was one of transition following the disposal of
Interpet, our pet accessory business. Another important event was the recent
purchase of the 50% of ECO Animal Health not already owned by the Group. I
believe these are significant steps for Lawrence plc and demonstrate our
confidence in ECO. I look forward to the future and expect our strong growth to
continue.'


Contacts:

Lawrence plc
Peter Lawrence                                                020 8336 2900

Charles Stanley & Co Ltd
Philip Davies                                                 020 7739 8200

Spiro Financial
Anthony Spiro                                                 020 8949 0428


Lawrence plc is a leader in the development, manufacture and distribution of
principally specialist chemical and pharmaceutical products for the animal
health and farming markets worldwide. Our products for these growth markets
incorporate natural ingredients to promote well-being and sustainability. We
achieve our financial goals through the careful and responsible application of
science to generate value for our shareholders.

CHAIRMAN'S STATEMENT

I am pleased to report that in the six months to 30 September 2004 the Group
made profit before tax of £1.3 million on sales of £8.4 million.  These results
are in line with our expectations. Earnings per share before minorities were 3.6
pence and the Board has declared an interim dividend of 1.4 pence (net) per
share, 10 per cent above the level of last year. The dividend will be paid on 7
April 2005 to shareholders on the register on 18 March 2005.  The current year
is one of transition for the Group following the sale of Interpet, our pet
accessory business, at the end of the last financial year and before the
benefits arise from sales of Aivlosin in Europe.

At the end of October, after the close of the period under review, we completed
the purchase of the 50 per cent of ECO Animal Health that we did not already
own. The consideration was £8 million in cash plus 3.3 million new Lawrence
ordinary shares with up to a further one million shares to be issued dependent
on ECO's performance over the period up to March 2009. This transaction is a
significant step in the development of our company and demonstrates our
confidence in ECO, an exciting and fast expanding business. It also reallocates
part of the cash proceeds from the Interpet sale to our animal health business
and also eliminates the minority element from our future Group results.

I am delighted to welcome Michael Sanders, President of ECO Animal Health, to
the Board of Lawrence plc where his knowledge, wealth of experience and vision
of the animal health industry will be invaluable.

As highlighted in my statement in last July's annual report, Lawrence is now
focused on the animal health and animal feed markets worldwide. In April we
announced the grant of our first European marketing authorisation for Aivlosin,
initially for swine pneumonia. We have been very active co-ordinating the launch
of this product across the 25 member countries of the EU, principally through
Schering Plough's distribution network. Sales commenced in October, a few weeks
later than originally planned; nevertheless we anticipate follow-on orders early
in 2005 which should contribute to the results for the second half of the year.

The disposal of Aquarium Products, our US based pet accessories business, has
yet to be completed. Whilst this is frustrating, the business is trading well
and significantly ahead of the same period last year. We remain confident that
negotiations will conclude in due course.

ECO Animal Health

The business made good progress in the first half of the year with sales ahead
of the same period last year. A feature of this performance is the recovery in
our sales to South America from the depressed level of 12 months ago, which
reflects our investment in strengthened management and distributor arrangements.

In order to capitalise on selling Aivlosin in Europe, we have further added to
our sales and marketing teams as well as our registration departments.
Additional applications for the registration of Aivlosin for other indications
in pigs, including ileitis and swine dysentery, were submitted in November and
we hope to receive marketing authorisations during 2005.  Concurrently, we have
also expanded our North American registration team in order to accelerate our
applications for drug licences in the USA through the US Federal Drug
Administration. Unlike the EMEA in Europe, the FDA allows a modular approach;
two modules relating to safety and toxicology have already been approved.

The new Aivlosin manufacturing plant in China is working well and delivering
product.  The facility came on stream in October and has received Chinese GMP
(Good Manufacturing Practice) accreditation.  This enables us to apply for the
plant to be included as a supplier of Aivlosin for Europe. In addition Aivlosin
from this plant is now undergoing the final field trial modules as part of the
FDA approval process.

Aivlosin is particularly cost effective when compared with other available
treatments for respiratory and dysentery type diseases in pigs and poultry. It
has been sold in parts of the world outside Europe and the USA for some 12
years.  It has a proven track record and we are confident that once the
approvals have been granted for all the indications in both Europe and America,
which should be within three years, we will be in an excellent position to more
than recoup our very significant investment in drug registrations. Further
information about Aivlosin is available on our new web site www.aivlosin.com.

Aivlosin is one of the first new molecules to undergo registration through the
EMEA (Pan European Registration). As we all become more familiar with the new
system, ECO is optimistic that the whole process will move forward faster.

Further registrations in Europe and North America for our Ecomectin range
continue to be submitted, along with a pipeline of new products for farm and
companion animals, which will assure the profitable growth of ECO Animal Health
in the years ahead.

Agil

Agil has traded well, growing sales by 10 per cent compared with the same period
last year. This performance reflects steadily improving market conditions, free
of the external factors which affected last year's result. The introduction of
our new drinking water purification system, Credence, together with the
successful testing of some innovative new products, should ensure a continuing
steady performance from this division, which supplies bio-security systems for
fresh and safe animal feed.

In December 2005 the use of antibiotics as growth promoters will be banned in
Europe. Agil is poised to take advantage of this legislation and expects a
significant increase in the sale of Prefect, Salkil and Bactacid, its
antibiotic-free range of products, which promote well-being in farm animals.

Blackfast

Blackfast Chemicals continues to enjoy buoyant export sales from its metal
surface treatment chemicals and continues to contribute usefully to the Group.

Outlook

Lawrence is going through a very positive transition following the sale of
Interpet and the purchase of the ECO minority. The timing of the grant of drug
registrations is outside our control and consequently our financial results will
be influenced by the dates of these registrations. Notwithstanding this, the
Board believe that following the purchase of the outstanding shareholding in
ECO, together with the other recent positive developments, the Group is well
positioned for continued growth.

Peter A Lawrence
Chairman
6 December 2004


CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                             Six              Six                Six           
                                          months           months             months            Year            Year
                                           ended            Ended              ended           ended           ended
                                        30.09.04         30.09.03           30.09.03        31.03.04        31.03.04
                                     (unaudited)      (unaudited)        (unaudited)       (audited)       (audited)
                                           £'000            £'000              £'000           £'000           £'000

TURNOVER
Continuing operations                      8,399            7,978                             16,128
Discontinued operations                        -           10,273             18,251          17,203          33,331

Cost of sales                            (5,352)                            (10,866)                        (19,876)


GROSS PROFIT                               3,047                               7,385                          13,455
Administrative expenses                  (1,912)                             (5,096)                        (10,788)
Goodwill amortisation                                                           (78)

OPERATING PROFIT
Continuing operations                      1,135            1,054                                771
Discontinued operations                                     1,157              2,211           1,896           2,667

Share of profits of associate                  -                                  11                               -
Income from investments                        -                                   -                              64
                                           1,135                               2,222                           2,731

Exceptional items                              -                                                               2,783
Interest receivable/(payable)                128                                (98)                           (159)

PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION                 1,263                               2,124                           5,355

Taxation                                   (310)                               (682)                           (677)

PROFIT AFTER TAX                             953                               1,442                           4,678
                                           (151)                               (304)                           (383)

Minority interest

PROFIT FOR PERIOD                            802                               1,138                           4,295
Dividends                                  (375)                               (335)                         (1,753)

RETAINED PROFIT
TRANSFERRED TO RESERVES                      427                                 803                           2,542


BASIC EARNINGS PER SHARE                   3.00p                               4.34p                          16.26p

FULLY DILUTED EARNINGS
PER SHARE                                  2.96p                               4.24p                          15.97p


BALANCE SHEET
                                              Six months           Six months         Year ended
                                          ended 30.09.04       ended 30.09.03           31.03.04
                                             (unaudited)          (unaudited)          (audited)
                                                    £000                 £000               £000

FIXED ASSETS
Intangible assets                                  6,312                8,385              5,661
Tangible assets                                      873                1,414                865
Investments                                        1,252                  816                713
                                                   8,437               10,615              7,239

CURRENT ASSETS
Stock                                              3,284                9,039              2,316
Debtors                                            8,236               10,106             23,925
Cash at bank and in hand                          11,530                  831                524
                                                  23,050               19,976             26,765

CREDITORS
Amounts falling due within one year              (7,485)              (9,072)           (10,596)

NET CURRENT ASSETS                                15,565               10,904             16,169

TOTAL ASSETS LESS
CURRENT LIABILITIES                               24,002               21,519             23,408

CREDITORS

Amounts falling due after more than one          (1,292)              (1,560)            (1,292)
year

NET ASSETS                                        22,710               19,959             22,116

CAPITAL AND RESERVES
Called up share capital                            1,341                1,315              1,337
Share premium                                      7,987                7,516              7,936
Capital redemption reserve                           106                  106                106
Profit and loss account                           11,915                9,830             11,519
Minority interest                                  1,361                1,192              1,218

SHAREHOLDERS' FUNDS                               22,710               19,959             22,116


CASH FLOW STATEMENT

                                                                             Six months ended        Year ended
                                                                                     30.09.04          31.03.04
                                                                                  (unaudited)         (audited)
                                                                                         £000              £000
NET CASH (OUTFLOW)/INFLOW FROM
                                                                                         (94)             3,381
OPERATING ACTIVITIES

RETURNS ON INVESTMENT AND SERVICING OF FINANCE
Interest received                                                                         234                95
Interest paid                                                                           (106)             (254)
Dividends received                                                                          -                64
NET CASH INFLOW/(OUTFLOW) FROM RETURNS ON INVESTMENT AND
SERVICING OF FINANCE                                                                      128              (95)

TAXATION                                                                                (581)             (802)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of intangible fixed assets                                                   (2,003)           (2,871)
Purchase of tangible fixed assets                                                        (28)             (247)
Sale of investments                                                                         -                86
Sale of tangible fixed assets                                                               -                21
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE
AND FINANCIAL INVESTMENT                                                              (2,031)           (3,011)

ACQUISITIONS AND DISPOSALS                                                             16,595              (59)

EQUITY DIVIDENDS PAID                                                                   (341)           (1,334)

FINANCING
Issue of shares                                                                            54               773
Repayment of borrowing (net)                                                          (2,723)              (17)
NET CASH (OUTFLOW)/INFLOW  FROM FINANCING                                             (2,669)               756

INCREASE/(DECREASE) IN CASH                                                            11,007           (1,164)


Notes

(1) RECONCILIATION OF OPERATING PROFIT TO NET CASH FROM OPERATING ACTIVITIES
(OUTFLOW)/INFLOW

                                                             30.09.04        31.03.04           31.03.04      31.03.04
                                                                            Continued       Discontinued         Total
                                                                 £000            £000               £000          £000
Operating profit                                                1,135             771               1896         2,667
Exchange losses                                                  (38)            (66)                  -          (66)
Depreciation charge                                                21             137                171           308
Amortisation charge                                               398             567                355           922
Increase in stocks                                              (967)           (473)              (995)       (1,468)
(Increase)/Decrease in debtors                                  (492)              82               1032         1,114
Decrease in creditors                                           (151)             693              (789)          (96)
Net Cash (Outflow)/Inflow from operating activities              (94)            1711               1670         3,381


(2) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                                   30.09.04       31.03.04
                                                                       £000           £000

Increase/Decrease in cash in the period                              11,007        (1,164)
Decrease in debt                                                      2,723             17
Change in net debt resulting from cash flows                         13,730        (1,147)
Effect of foreign exchange (losses)                                                  (104)
Movement of net debt in the period                                   13,730        (1,251)
Net Debt at 1st April 2004                                          (3,750)        (2,500)
Net Debt at 30th September 2004                                       9,980        (3,750)


(3) RECONCILIATION ANALYSIS OF CHANGES IN NET DEBT
                                                                                      At      
                                                  At 1.4.04     Cash flow        30.9.04      At 30.9.03
                                                       £000          £000           £000            £000

Cash at bank and in hand                                524        11,530         11,530             831
Overdrafts                                          (2,982)             -              -           (493)
                                                    (2,458)        11,530         11,530             338

Debt                                                (1,292)        (1,550)        (1,550)         (1,560)
                                                    (3,750)         9,980          9,980          (1,222)



NOTES TO THE INTERIM REPORT

The summarised results of the half year to 30 September 2004, which are
unaudited, have been prepared in accordance with the accounting policies in the
Accounts for the period ended 31 March 2004.

The summary of results for the year ended 31 March 2004 does not constitute full
financial statements within the meaning of Section 240 of the Companies Act
1985.  The full financial statements for that year have been reported on by the
company's auditors and delivered to the Registrar of Companies.  The audit
report was unqualified and did not contain a statement under Section 237 (2) or
Section 237 (3) of the Companies Act 1985.

The directors have declared an interim dividend of 1.40p per share (2003:
1.275p), payable on 7 April 2005 to shareholders on the register on 18 March
2005.

The calculation of basic earnings per ordinary share is based on the profit for
the period and 26,785,450 ordinary shares (2003: 26,245,963) being the weighted
average number of shares in issue during the half year. The weighted average
number of shares in issue during the year ended 31 March 2004 was 26,420,744.
There currently 30,387,407 shares in issue.

The interim report was issued to the Stock Exchange and the press on 6 December
2004 and will be posted to shareholders.

Further copies of the interim report are available at the Company's Registered
Office.


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