Final Results

Hill & Smith Hldgs PLC
23 January 2001

HILL & SMITH HOLDINGS PLC

PRELIMINARY RESULTS


Hill & Smith Holdings PLC ('Hill & Smith' or the 'Company') is pleased to
announce its preliminary results for the year ended 30 September 2000.


Highlights

*  Turnover at £58.86 million (1999:  continuing businesses £56.51 million)

*  Operating profit at £4.62 million (1999:  continuing businesses £4.82
   million)

*  Pre-tax profit, after accounting for disposals, at £4.35 million (1999:  £
   3.56 million)

*  IIMR earnings per ordinary share at 7.92p (1999: 7.01p)

*  Final dividend unchanged at 2.1p - giving 4.2p total for the year

*  Successful acquisition of Ash & Lacy plc in November 2000

*  Year end changed to 31 December, for easy accommodation of Ash & Lacy
   acquisition

Chairman of Hill & Smith, David Winterbottom, said:  'Again, I am pleased to
report the progress made in the Group during the financial year ended 30
September 2000.  Turnover in our continuing businesses increased by 4.2% to £
58.86 million (1999:  £56.51 million) and, whilst operating profit was a
little down on the previous year, profit before tax after accounting for
disposals showed a healthy increase of 22.2% to £4.35 million (1999:  £3.56
million).

 'All in all, it was a sound year of consolidation for the Group, following
our extensive re-organisation.  However, at the same time, we continued to
develop new products and make appropriate acquisitions to complement our core
activities.

'Along with other small engineering businesses, the Board is concerned by the
need to improve shareholder value.  Much time has been devoted to developing
our strategy and, following the year end, we completed the acquisition of Ash
& Lacy plc ('Ash & Lacy').  We believe that this substantial and innovative
acquisition will do much to strengthen our core business activities, introduce
new product opportunities and will commence the improvement in shareholder
value I referred to earlier.'

For further information, please contact:

Hill & Smith Holdings PLC                              Today:     01756 770 376
David Winterbottom, Chairman                      Thereafter:     01902 357 910
David Grove, Chief Executive

Rawlings Financial PR Limited                                     01756 770 376
John Rawlings
Catriona Valentine

                             CHAIRMAN'S STATEMENT

General

Again, I am pleased to report the progress made in the Group during the
financial year ended 30 September 2000.  Turnover in our continuing businesses
increased by 4.2% to £58.86 million (1999:  £56.51 million) and, whilst
operating profit was a little down on the previous year, profit before tax
after accounting for disposals showed a healthy increase of 22.2% to £4.35
million (1999:  £3.56 million).

IIMR Earnings per share increased to 7.92p (1999:  7.01) per share.  Gearing
at 18.6% (1999: 19.2%) improved slightly against the previous year, reflecting
tight control, offset by increased cost of holding raw materials, and infill
acquisitions made during the year.  We also bought in a small number of our
shares in the market.

All in all, it was a sound year of consolidation for the Group, following our
extensive re-organisation.  However, at the same time, we continued to develop
new products and make appropriate acquisitions to complement our core
activities.

Along with other small engineering businesses, the Board is concerned by the
need to improve shareholder value.  Much time has been devoted to developing
our strategy and, following the year end, we completed the acquisition of Ash
& Lacy plc ('Ash & Lacy').  We believe that this substantial and innovative
acquisition will do much to strengthen our core business activities, introduce
new product opportunities and will commence the improvement in shareholder
value I referred to earlier.  We are evaluating still further our acquisition
but we welcome the Ash & Lacy companies and personnel into our Group.

Dividends

Mindful of our recent acquisition and our desire to build on the continuing
good health of the Company, the Board is pleased to recommend a final dividend
for the year of 2.1p per share (1999:  2.1p per share) making a total for the
year of 4.2p per share (1999:  4.2p per share).  The Board will be examining
the Company's dividend strategy for the future in the context of our enhanced
operations.

Board Structure and Employees

Following the acquisition of Ash & Lacy, Howard Marshall joined the Board as a
non-executive director.  He was previously Chief Executive of Ash & Lacy.
Additionally, Chris Burr joined the Board as Group Finance Director, he was
previously Finance Director of Ash & Lacy.  I welcome both of them and look
forward to working with them.  Howard Everett moves to take the role of
Executive Director and Company Secretary.

May I repeat my thanks to all our employees for their sustained efforts during
yet another year of change.  I say again that they are our most valuable
asset.

Trading

It is well publicised that conditions continue to be difficult in our sector
but, as long as there is no further adverse change in economic conditions, I
look forward to a satisfactory outcome to the current trading period, which
has started in line with our expectations.

As Ash & Lacy had a different year end to our company, the decision was taken
to change Hill & Smith Holdings' year end to 31 December.  This will give a 15
month period for the enlarged group, which will only include Ash & Lacy
companies from the date of acquisition (1 November 2000) to 31 December 2001.

David S Winterbottom
Chairman
23 January 2001

CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 30 September 2000


                                        2000        1999         1999      1999
                                              Continuing Discontinued     Total
                            Notes       £000        £000         £000      £000

Turnover                              58,858      56,505        5,435    61,940

Cost of sales                       (42,114)    (40,350)      (4,389)  (44,739)
                                      ------      ------       ------    ------
Gross profit                          16,744      16,155        1,046    17,201

                                      ------      ------       ------    ------
Distribution costs                   (3,021)     (2,583)        (343)   (2,926)
Administrative expenses              (9,103)     (8,752)        (745)   (9,497)
                                      ------      ------       ------    ------

Operating profit/(loss)                4,620       4,820         (42)     4,778
Profit on sale of property               464           -            -         -


Loss on sale of net assets              (64)           -        (925)     (925)
Related goodwill                           -           -          386       386


Loss on sale of businesses              (64)           -        (539)     (539)
                                      ------      ------       ------    ------
Profit/(loss) on ordinary
activities before interest             5,020       4,820        (581)     4,239
Net interest                           (668)                              (677)
                                      ------                             ------


Profit on ordinary
activities before tax                  4,352                              3,562

Tax on profit on ordinary
activities                    1        (879)                            (1,269)

                                      ------                             ------

Profit for the financial
year                                   3,473                              2,293

Dividends on equity shares           (1,621)                            (1,635)

                                      ------                             ------

Retained profit for the                1,852                                658
year

                                      ======                             ======



Earnings per ordinary         2
share:

Basic                                  8.96p                              5.82p

Diluted                                8.93p                              5.81p

IIMR                                   7.92p                              7.01p

                                      ======                             ======

Turnover and operating profit for the year ended 30 September 2000 were
derived wholly from continuing operations.


CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the year ended 30 September 2000


                                                                  2000     1999
                                                                  £000     £000

Profit for the financial year                                    3,473    2,293


Realised gain/(unrealised deficit) on revaluation of
properties                                                         126    (373)
Exchange differences on the retranslation of net investments      (54)        4
                                                                ------   ------
Total recognised gains and losses relating to the financial
year                                                             3,545    1,924

                                                                ======   ======


NOTE OF CONSOLIDATED HISTORICAL COST PROFITS AND LOSSES

There is no material difference between the results as disclosed in the profit
and loss account and the results as given on an unmodified historical cost
basis.


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

For the year ended 30 September 2000


                                                  Group                Company

                                         2000       1999       2000       1999
                                         £000       £000       £000       £000

Profit/(loss) for the financial         3,473      2,293      1,708    (4,030)
year

Dividends                             (1,621)    (1,635)    (1,621)    (1,635)

                                       ------     ------     ------     ------

                                        1,852        658         87    (5,665)

Exchange differences                     (54)          4          -          -

Revaluation deficit                         -      (373)          -          -

New share capital subscribed                4          -          4          -

Goodwill taken to profit and loss
account on disposal                         -      (386)          -          -

Purchase of own shares                  (198)      (406)      (198)      (406)

                                       ------     ------     ------     ------

Net increase/(reduction) in
shareholders' funds                     1,604      (503)      (107)    (6,071)

Opening shareholders' funds            23,080     23,583     14,551     20,622

                                       ------     ------     ------     ------

Closing shareholders' funds            24,684     23,080     14,444     14,551

                                       ======     ======     ======     ======


CONSOLIDATED BALANCE SHEET

As at 30 September 2000


                                                     2000                 1999
                                Notes        £000     £000       £000      £000

Fixed assets

Intangible assets                                    3,213                2,826
Tangible assets                                     17,470               17,054
Investments                                          1,365                1,400
                                                    ------               ------
                                                    22,048               21,280
Current assets

Property held for realisation                   -                 906
Stocks                                      7,632               6,624
Debtors                                    17,689              14,841
Cash at bank and in hand                      288               1,291
                                           ------              ------
                                           25,609              23,662

Creditors: amounts falling due
within one year                          (22,302)            (18,488)
                                           ------              ------
Net current assets                                   3,307                5,174

                                                    ------               ------

Total assets less current
liabilities                                         25,355               26,454


Creditors: amounts falling due
after more than one year                             (305)              (2,843)

Provisions for liabilities and
charges                                              (330)                (531)

                                                    ------               ------
Net assets                                          24,720               23,080

                                                    ======               ======

Capital and reserves              3

Called up share capital                              9,654                9,734
Share premium                                          135                  133
Revaluation reserve                                  1,781                1,907
Capital redemption reserve                             238                  156
Profit and loss account                             12,876               11,150
                                                    ------               ------
Equity shareholders' funds                          24,684               23,080

Minority interests - equity                             36                    -
                                                    ------               ------
                                                    24,720               23,080
                                                    ======               ======

Net assets per share                                63.92p               59.28p

                                                    ======               ======


CONSOLIDATED CASH FLOW STATEMENT

For the year ended 30 September 2000


                                                      2000                1999
                                 Notes       £000      £000     £000       £000

Net cash inflow from operating
activities                         4                  4,213               8,851


Returns on investments and
servicing of finance
Interest received                               2                 14
Interest paid                               (589)              (635)
Interest element of finance
lease rental payments                        (82)               (56)
                                           ------             ------
                                                      (669)               (677)
Taxation
Corporation tax paid                                  (386)               (748)

Capital expenditure and
financial investment
Purchase of fixed assets                  (1,989)            (1,987)
Sale of fixed assets                          144              3,728
Sale of properties held for
realisation                                 1,370                444
                                           ------             ------
                                                      (475)               2,185
Acquisitions and disposals
Purchase of businesses                      (665)            (1,175)
Sale of businesses net of costs
of disposal                                  (64)              (377)
                                           ------             ------
                                                      (729)             (1,552)
Equity dividends paid                               (1,632)               (831)

                                                     ------              ------
Cash inflow before financing                            322               7,228

Financing
Issue of ordinary share capital                 4                  -
Capital element of finance lease
rental payments net of advances             (378)                189
Repayment of loans                        (3,500)            (1,608)
Purchase of own shares                      (198)              (406)
                                           ------             ------
                                                    (4,072)             (1,825)
                                                     ------              ------
(Decrease)/increase in cash                         (3,750)               5,403
                                                     ======              ======
Reconciliation of net cash flow
to movement in net debt
(Decrease)/increase in cash in
the period                                          (3,750)               5,403
Decrease in debt and lease
financing                                             3,878               1,419
                                                     ------              ------
Changes in net debt from cash
flows                                                   128               6,822
New finance leases                                    (284)                   -
                                                     ------              ------
Movement in net debt in year                          (156)               6,822
Net debt as at 30 September 1999                    (4,433)            (11,255)
                                                     ------              ------
Net debt as at 30 September 2000   5                (4,589)             (4,433)
                                                     ======              ======


NOTES TO THE FINANCIAL STATEMENTS


1. Taxation on profit on ordinary activities


                                                                 2000      1999
                                                                 £000      £000

UK corporation tax at 30% (1999: 30.5%)                         1,155     1,118
Deferred taxation                                                (26)      (29)
Adjustments relating to an earlier year corporation tax         (250)       180
                                                               ------    ------
                                                                  879     1,269
                                                               ======    ======

2. Earnings per share


The FRS3 basic earnings per share is arrived at by dividing the profit after
tax of £3.473m (1999: £2.293m) by 38,777,907 shares (1999: 39,389,495), being
the weighted average number of ordinary shares in issue during the year.

The FRS3 diluted earnings per share is arrived at by adjusting for share
options.

The IIMR earnings per share is calculated by reference to earnings of £3.073m
(1999: £2.765m) divided by 38,777,907 shares (1999: 39,389,495), being the
weighted average number of ordinary shares in issue during the year.  The
reconciliation to basic earnings per share is as follows:



                                                                2000       1999
                                                               Pence      Pence

Basic earnings per share                                        8.96       5.82
Profit on sale of property                                    (1.20)          -
Loss on sale of businesses                                      0.16       1.37
Tax effect on non-operating exceptional items                      -     (0.18)
                                                              ------     ------
                                                                7.92       7.01
                                                              ======     ======


3. Reserves


                                                              2000         1999
                                                              £000         £000
 (a)  Share premium

      At 30 September 1999                                     133          133

      Premium on shares issued                                   2            -

                                                            ------       ------

      At 30 September 2000                                     135          133

                                                            ======       ======

 (b)  Revaluation reserve

      At 30 September 1999                                   1,907        2,290

      Transfer to profit and loss account                        -         (10)

      Revaluation deficit                                        -        (373)

      Realised on disposal                                   (126)            -

                                                            ------       ------

      At 30 September 2000                                   1,781        1,907

                                                            ======       ======


 (c)  Capital redemption reserve

      At 30 September 1999                                     156            -

      Purchase of shares                                        82          156

                                                            ------       ------

      At 30 September 2000                                     238          156

                                                            ======       ======

 (d)  Profit and loss account

      At 30 September 1999                                  11,150       11,270



      Profit for the year                                    1,852          658

      Goodwill on disposal                                       -        (386)

      Exchange difference                                     (54)            4

      Transfer from revaluation reserve                        126           10

      Purchase of own shares                                 (198)        (406)

                                                            ------       ------

      At 30 September 2000                                  12,876       11,150

                                                            ======       ======

4. Reconciliation of operating profit to net cash inflows from operating
activities


                                                        2000              1999
                                                        £000              £000

Operating profit                                       4,620             4,778
Depreciation                                           1,972             1,922
Stock                                                  (725)             2,259
Debtors                                              (3,145)             1,639
Creditors                                              1,666           (1,496)
Provisions                                             (175)             (104)
Reorganisation costs                                       -             (147)
                                                      ------            ------
                                                       4,213             8,851
                                                      ======            ======

5. Analysis of net debt


                                                            Other
                                 2000    Cashflow        non-cash          1999
                                 £000        £000            £000          £000

Cash at bank and in hand          288     (1,003)               -         1,291
Bank overdrafts               (2,747)     (2,747)               -             -
                               ------      ------          ------        ------
                              (2,459)     (3,750)               -         1,291
                               ======      ======          ======        ======

Debt due after one year             -       1,000           1,375       (2,375)
Debt due within one year      (1,375)       2,500         (1,375)       (2,500)
Finance leases                  (755)         378           (284)         (849)
                               ------      ------          ------        ------
                              (2,130)       3,878           (284)       (5,724)
                               ======      ======          ======        ======
                              (4,589)         128           (284)       (4,433)
                               ======      ======          ======        ======

NOTES



1. The proposed final dividend will be paid on 9 April 2001 to shareholders on
the register on 9 February 2001 (ex-dividend date 7 February 2001).


2. The financial information set out in this preliminary announcement does not
constitute the company's statutory accounts for the years ended 30 September
1999 or 2000.  Statutory accounts for 1999 have been delivered to the
Registrar of Companies and those for 2000 will be delivered following the
company's annual general meeting.  The auditors have reported on those
accounts; their reports were unqualified and did not contain statements under
Section 237(2) or (3) of the Companies Act 1985.

3. The Annual Report will be posted to shareholders on 1 February 2001 and
will be available from the registered office at Springvale Industrial &
Business Park, Bilston, West Midlands, WV14 0QL.

4. The Annual General Meeting will be held at The Copthorne Hotel, Level
Street, Brierley Hill, at 12:30 hours on Monday 5 March 2001.

5. Financial Calendar:


Preliminary announcement of results to 30 September 2000        23 January 2001
Annual General Meeting                                             5 March 2001
Payment of proposed final dividend                                 9 April 2001
Interim results announcement for the period to 31 March 2001          June 2001
Payment of interim dividend                                        October 2001
Interim results announcement for the period to
30 September 2001                                                 December 2001
Preliminary announcement of results of results to
31 December 2001                                                     April 2002

6. This Preliminary announcement of results for the year ended 30 September
2000 was approved by the Directors on 23 January 2001.