Final Results

Eleco PLC
11 October 2005


For release                                                     11 October 2005


                                   ELECO PLC

              The Building Systems and Construction Software Group


                              PRELIMINARY RESULTS
                          for Year ended 30 June 2005


Enquiries:
Eleco plc                                    Tel: [phone]
John Ketteley, Executive Chairman            [e-mail]
David Dannhauser, Finance Director           [e-mail]

Binns & Co PR                                Tel: [phone]
Tarquin Edwards                              07879 458 364


                           'An Excellent Performance'

                                   Highlights
Financial

   • Turnover increased by 7.3 % to £48,018,000 (2004: £44,762,000)

   • Operating profit grew strongly by 21.6 % to £2,637,000 (2004:
     £2,169,000)

   • Profit before tax rose by 144.3 % to £2,287,000 (2004: £936,000)

   • EPS, adjusting for the post-tax losses of discontinued operations, was
     4.5p (2004: 2.8p)

   • Positive operating cash flow again this year saw gearing eliminated


Operational

   • Building Systems continue to make excellent progress across most
     divisions

   • Construction Software moving forward steadily


John Ketteley, Executive Chairman of Eleco plc, commented re: Outlook:

'The Group has made a good start to the year and performance for the first
quarter is ahead of the same period the previous year.

The outlook in some of our markets, particularly in the UK, is more uncertain
than it has been for some time and there are some signs that demand may be
weakening in some sectors of the construction industry. That said, builders are
increasingly employing building systems that make use of offsite manufactured
products, supported by effective software technologies and Eleco is well placed
to provide such systems. With its strong financial position, good cash
generation and the benefit to be gained from our continuing investment in new
building systems and software, I have every confidence in the future of the
Eleco Group'.


Chairman's Statement

I am pleased to present my statement for the year ended 30 June 2005 and the
outlook for the current year.

Group turnover for the year was £48,018,000 (2004: £44,762,000), an increase of
7.3 per cent.

Group operating profit for the year amounted to £2,637,000 (2004: £2,169,000),
an increase of 21.6 per cent. Profit on ordinary activities before tax amounted
to £2,287,000 (2004: £936,000) after net interest payable of £226,000 (2004:
£237,000).

Group profit for the year after tax was £2,056,000 (2004: £311,000), equivalent
to 4.2p per share (2004: 0.6p per share). Earnings per share of continuing
operations, adjusting for the post-tax losses of discontinued operations,
amounted to 4.5p (2004: 2.8p). The low tax charge for the year reflects the
benefit from utilising brought forward losses for which no deferred tax asset
was previously recognized.

The above results were achieved after £1,254,000 (2004: £964,000) expenditure on
research and development. I consider it a creditable achievement for Eleco to
have been included in the Department of Trade and Industry list of the top 700
UK companies for investment in research and development.

Operating cash flow was again pleasingly strong in the year. As a consequence,
gearing was eliminated. Net funds in hand at 30 June 2005 amounted to £176,000
compared with total net borrowings at 30 June 2004 of £310,000.

All the above performance measures are most encouraging.

Dividend

Having regard to the strong performance of your company over the past year, the
Board has proposed an increased final dividend of 1.00p per share (2004:
0.875p), which, subject to approval by shareholders, will be paid on 9 December
2005 to shareholders on the Register on 25 November 2005. The proposed final
dividend, together with the interim dividend of 0.4p would result in the payment
of total dividends for the year totaling 1.40p per share (2004: 1.25p), an
increase of 12.0 per cent.

OPERATING REVIEW
Building Systems

Overall, the Building Systems operations made excellent progress during the
year. Turnover increased by 5.7 per cent to £42,333,000 (2004: £40,040,000).
Operating profit increased by 8.5 per cent. to £3,725,000 (2004: £3,433,000).

Precast Concrete

As anticipated in my interim statement, Bell & Webster Concrete's performance
was adversely affected by the disruption caused by delays to the Lancaster
University student accommodation project that resulted from the replacement of
the main contractor. However, a new sub-contract for Phase III of the project
was agreed with the new main contractor, Norwest Holst.

Bell & Webster is experiencing continuing firm interest in its FastBuild Rooms
for hotel and student accommodation. Demand for terracing, retaining walls and
ground beam products continues at reasonable levels.

Roofing, and Cladding and Panels

The Roofing and Cladding businesses produced mixed performances in a difficult
market environment. Lower profits of SpeedDeck Building Systems were compensated
by good profits from Prompt Profiles and Downer Cladding. SpeedDeck Building
Systems' sales in the final quarter were adversely affected by on the site of a
major roofing project at Rothley Park.

The newly completed SpeedDeck(R) Designer 3 has now been distributed to our
customers as well as to other interested parties. This roofing design and
specification software tool, which is capable of demonstrating the technical
features of projects in a 3D format, has received excellent reviews in the trade
press.

Eleco Timber Frame was established in Speke at the beginning of the year to
manufacture a patented, engineered timber wall framing system principally used
in the housing sector and I am pleased to report it made a profit in its first
year. Eleco Timber Frame is also a manufacturer of Ecojoist(R), our metal web
floor joist product. Demand for these products has been such that we have
recently established a second production unit in Speke and are currently setting
up another manufacturing unit at Yaxley to complement the operations at Speke.
The expansion of Eleco Timber Frame is being facilitated by the use of enhanced
design software, developed by Eleco Software and M@trix enterprise management
software, developed by Gang-Nail Systems.

Stramit Industries again made a loss as sales of plasterboard partition panels
remained depressed. Sales of Elecofloor(R) acoustic flooring products showed a
useful increase.

Timber Engineering Systems

All the timber engineering systems businesses performed well in the year under
review.

Gang-Nail Systems had another excellent year making a higher contribution to
Group profits despite the impact of higher steel prices. Its results benefited
from a significantly increased volume of orders for nail plates from Eleco
Bauprodukte, which continued to improve its market share in Germany and which
made a useful contribution to profits compared with a small loss in the previous
year.

International Truss Systems delivered another outstanding performance despite
higher steel prices. It has now introduced GN Roof and Truss Windows(R) based
software to its customers in South Africa to replace the original DOS based
design and engineering software. The new program was very well received.

Construction Software

Turnover of our continuing Construction Software operations increased by 28.6
per cent. to £5,503,000 (2004: £4,280,000). The operating loss from these
activities was marginally lower at £1,033,000 (2004: £1,072000). It should be
noted that major new licensing and distribution agreements were agreed during
the latter part of the year under review, from which benefits will flow in
future periods.

We continued to make progress in co-coordinating software development and
marketing activities during the year. Fully expensed spending on software
development and enhancement rose to £835,000 in the year under review from
£550,000 in 2004.

Consultec Sweden produced higher profits for the year whereas Eleco Software in
the UK and in Germany were again loss making, due in part to the incidence of
the fully expensed cost of their respective software development programmes.

In October 2005 we acquired Esign GmbH, a developer of specialised software for
the floor coverings market. Esign has already made a significant impact in the
German market with its catalogue management and visualisation software and its
products have started to penetrate international markets.

Management and Employees

I would like on your behalf to thank all our employees for their efforts during
the year and their contribution to the achievement of these results.

Herman Scopes, who was appointed to the Board in 1998, will be retiring at the
Annual General Meeting. I would like to thank him for his wise counsel and
contribution to the Group's affairs.

Outlook

The Group has made a good start to the year and performance for the first
quarter is ahead of the same period the previous year.

The outlook in some of our markets, particularly in the UK, is more uncertain
than it has been for some time and there are some signs that demand may be
weakening in some sectors of the construction industry. That said, builders are
increasingly employing building systems that make use of offsite manufactured
products, supported by effective software technologies and Eleco is well placed
to provide such systems. With its strong financial position, good cash
generation and the benefit to be gained from our continuing investment in new
building systems and software, I have every confidence in the future of the
Eleco Group.

John Ketteley
EXECUTIVE CHAIRMAN
11 October 2005



Eleco plc

Consolidated Profit and Loss Account (Unaudited)

For the year ended 30 June 2005
                                                         Notes          2005        2004
                                                                       £'000       £'000
Turnover
   Continuing operations                                   3          47,836      44,320
   Discontinued operations                                               182         442
Turnover                                                              48,018      44,762

Operating profit
   Continuing operations                                   3           2,692       2,361
   Discontinued operations                                 3             (55)       (192)
Operating profit                                                       2,637       2,169

Loss on termination of discontinued operations                          (124)       (996)

Profit on ordinary activities before interest                          2,513       1,173
Net interest payable                                                    (226)       (237)
Profit on ordinary activities before taxation                          2,287         936

Taxation                                                                (231)       (625)

Profit for the financial year                                          2,056         311

Dividends                                                  4            (682)       (611)

Retained profit/(loss)                                                 1,374        (300)

Dividends per share                                        4             1.4p       1.25p

Basic earnings per ordinary 10p share                      5             4.2p        0.6p

Diluted earnings per ordinary 10p share                    5             4.2p        0.6p



Reconciliation of Movement in Equity Shareholders' Funds
(Unaudited)
for the year ended 30 June 2005
                                                                        2005        2004
                                                                       £'000       £'000

Profit for the financial year as reported                              2,056         311

Other recognised profits relating to the year                            (78)         47
LTIP expense                                                             203         175

Increase in own shares held by ESOT                                        -         (45)

Dividends                                                               (682)       (611)

Proceeds from issue of ordinary shares                                     3          68
Net increase in equity shareholders' funds                             1,502         (55)

Opening equity shareholders' funds                                    11,581      11,636

Closing equity shareholders' funds                                    13,083      11,581




Eleco plc

Summarised Consolidated Balance Sheet (Unaudited)

at 30 June 2005
                                                                        2005        2004
                                                                       £'000       £'000

Fixed assets                                                          14,697      14,481

Current assets
  Stocks                                                               2,166       2,370
  Debtors                                                             10,516       9,140
  Cash at bank and in hand                                             2,707       2,490
                                                                      15,389      14,000
Creditors: amounts falling due within one year                       (15,309)    (13,628)

Net current assets                                                        80         372

Total assets less current liabilities                                 14,777      14,853

Creditors: amounts falling due after more than one year               (1,409)     (2,859)

Provisions for liabilities and charges                                  (285)       (413)

Net assets                                                            13,083      11,581

Capital and reserves
  Called up share capital                                              4,911       4,910
  Share premium account                                                6,022       6,020
  Merger reserve                                                         367         367
  Other reserve                                                          (50)        (50)

  Profit and loss account                                              1,833         334

Equity shareholders' funds                                            13,083      11,581





Eleco plc

Consolidated Cash Flow Statement (Unaudited)

for the year ended 30 June 2005
                                                          Notes         2005        2004
                                                                       £'000       £'000

  Net cash inflow from continuing operations                7          3,999       5,170

  Net cash inflow/(outflow) from discontinued operations    7             56        (291)

Net cash inflow from operating activities                   7          4,055       4,879

Returns on investment and servicing of finance

  Interest received                                                      196         130

  Interest paid                                                         (401)       (342)

  Interest element of finance lease rentals                              (32)        (22)

Net cash outflow from returns on investment and servicing               (237)       (234)
of finance
Net cash outflow from taxation                                          (532)       (773)

Capital expenditure and financial investment
  Purchase of fixed assets                                            (1,269)     (1,259)

  Disposal of tangible fixed assets                                      100         103

  Purchase of investments                                               (217)       (154)

Net cash outflow from capital expenditure and financial               (1,386)     (1,310)
investment
Acquisitions and disposals
  Purchase of subsidiary undertakings                                   (333)       (363)

  Cash acquired with subsidiary undertakings                             163         735

Net cash (outflow)/inflow from acquisitions and disposals               (170)        372

Equity dividends paid                                                   (621)       (597)

Net cash inflow before financing                                       1,109       2,337

Financing
  New bank loans                                                         150         500

  Repayment of principal under finance leases                           (293)       (225)

  Repayment of bank loans                                               (746)       (685)

  Issue of ordinary shares                                                 3          68

  Own shares purchased by Employee Share Ownership Trust                   -         (45)

Net cash outflow from financing                                         (886)       (387)

Increase in cash in the year                                8            223       1,950



Eleco plc

Notes

 1. The financial information in this announcement does not constitute statutory accounts
    within the meaning of section 240 of the Companies Act 1985. Statutory accounts of the
    Company, on which the Auditors will report, will be delivered to the Registrar of
    Companies and posted to shareholders on 21 October 2005. The comparative figures for
    the year to 30 June 2004 have been taken from, but do not constitute, the Company's
    statutory financial statements for that financial year. Those financial statements
    have been reported on by the Auditors and delivered to the Registrar of Companies. The
    Report of the Auditors was unqualified and did not contain a statement under s237(2)
    or (3) of the Companies Act 1985.
 2. The information herein has been prepared on the basis of the accounting policies
    adopted for the year ended 30 June 2005, as set out in the Company's Annual Report and
    Accounts.
 3. Turnover and Segmental analysis

      Group turnover and profits were attributable as follows

                                                    Turnover          Operating profit/
                                                                            (loss)
                                                    2005       2004        2005       2004

                                                   £'000      £'000       £'000      £'000
      Continuing operations
      Building Systems                            42,333     40,040       3,725      3,433
      Software Systems                             5,503      4,280     (1,033)    (1,072)
      Total continuing                            47,836     44,320       2,692      2,361

      Discontinued operations

      Software Systems                               182        442        (55)      (192)
      Total discontinued                             182        442        (55)      (192)
      Total                                       48,018     44,762       2,637      2,169

 4. A dividend of £195,000 (0.4p per share) was declared at the interim stage. A final
    dividend representing 1.00p per share is being proposed and, if approved at the
    Annual General Meeting, will be payable on 9 December 2005 to shareholders on the
    register on 25 November 2005.
 5. The calculation of basic earnings per share is based on the profit attributable to
    equity shareholders of £2,056,000 (2004: £311,000) and on 48,680,560 ordinary
    shares (2004: 48,350,144), being the weighted average number of ordinary shares in
    issue during the year.
    The calculation of diluted earnings per share is based on the profit attributable
    to equity shareholders of £2,056,000 (2004: £311,000) and on 48,700,519 ordinary
    shares (2004: 48,417,491), being the weighted average diluted number of ordinary
    shares in issue during the year.
    The earnings per share from continuing operations is 4.5p (2004: 2.8p), which gives
    a clearer guide to the underlying performance in the period. The calculation is
    based upon the profit on continuing operations attributable to equity shareholders
    of £2,181,000 (2004: £1,354,000) and on 48,680,560 (2004: 48,350,144) ordinary
    shares, being the weighted average number of ordinary shares in issue during the
    year.


6. Reconciliation of operating profit to net cash flow from
   operating activities

                                                      Continuing           Discontinued
                                                    2005       2004        2005      2004
                                                   £'000      £'000       £'000     £'000

     Operating profit                              2,692      2,361         (55)     (192)

     Termination costs and losses                      -          -        (124)     (230)

     Depreciation charge                           1,334      1,229          13        40

     Amortisation of intangible assets               545        352           -         -

     Amortisation of LTIP awards                     203        175           -         -

     (Profit)/loss on sale of fixed assets           (5)        (3)           3         9

     Working capital (increase) / decrease         (770)      1,056         219        82

     Net cash inflow/(outflow) from                3,999      5,170          56      (291)
     operating activities

 7. Reconciliation of net cash flow to movement in net
    debt
                                                                           2005      2004
                                                                          £'000     £'000

      Increase in cash in the year                                          223     1,950

      Cash flow from movements in debt and lease                            889       410
      financing
      Increase in net debt resulting from cash flows                      1,112     2,360

      Other non-cash items:
      New finance leases                                                   (555)     (281)

      Effects of changes in foreign exchange rates                          (71)       16

      Decrease in net debt in the year                                      486     2,095

      Opening net debt                                                     (310)   (2,405)
      Closing net funds/(debt)                                              176      (310)

 8. The Annual General Meeting of Eleco plc will be held at The London Capital Club, 15
    Abchurch Lane, London EC4N 7BB at 12:00 noon on 16 November 2005.





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