Final Results

Mercury Recycling Group PLC
09 May 2008


                          MERCURY RECYCLING GROUP PLC

            PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007

Mercury Recycling Group PLC, the recycler of fluorescent light tubes and sodium
street lights, quoted on AIM, announces final results for the year ended 31
December 2007.

•         Group sales up 10% to £2,657,000 (2006: £2,399,000)

•         Operating profit (before exceptional items) up 43% to £479,000 (2006:
          £336,000)

•         Profit before tax of £445,000 (2006: £84,000 profit)

•         Earnings per share (basic) up 319% to £1.09p (2006:  £0.26p)

•         Growth achieved following implementation of WEEE Directive in July
          2007

•         Announcement of completion of acquisition of Envirolite Limited in May
          2008



Enquiries:

Simon Lebor, Group Chief Executive
Mercury Recycling Group PLC                                  Tel: [phone]

John Wakefield, Director, Corporate Finance
Blue Oar Securities Plc                                      Tel:  [phone]



CHAIRMAN'S STATEMENT

I am pleased to report considerable progress for the year ended 31 December
2007. Sales increased by just over 10% to £2,657,000 from £2,399,000 in 2006.
Operating profits increased by over 40% to £479,000 from £336,000 demonstrating
the profit potential as sales continue to grow. As can be seen, the Group
Balance Sheet shows a strong liquid position, with current assets increasing to
£1,052,000 from just £668,000 in 2006.

In the light of the Group's strong financial position, the Directors had hoped
to pay a dividend this year. However, because there is an historical adverse
balance in our distributable reserves, this is not technically possible for this
year. Subject of course to results being satisfactory, we would be proposing to
recommend a dividend next year. Thereafter, it would be the intention that we
pursue a progressive dividend policy in line with growth in earnings per share.

The results are especially pleasing given, as stated previously, the
considerable confusion following the late implementation of the WEEE Directive
in July 2007. However the position is now much clearer, and has resulted in our
being allocated additional recycling areas across the country.

I am confident of the Group's future prospects, since we estimate that still
only some 30% of the approximately 130 million lamps a year are being recycled.
As it is now illegal to landfill lamps and other WEEE products, we can expect a
larger throughput for which we have the capacity. We are also seeing growth in
our recycling of other products such as batteries and electrical items, although
we expect the main increase will still come from our growing share of the lamp
recycling sector. I am therefore pleased to report that Management figures for
the first 3 months of 2008 are in line with expectations, although of course
there will be competition and price pressures.

We have been seeking further expansion by a suitable acquisition. I am pleased
that following lengthy negotiations we completed the acquisition of Envirolite
Limited and its associated companies, a complementary grouping in the waste
recycling sector, on 7 May 2008. The consideration of £1.1 million was funded
entirely from our own resources. This will open up new geographic areas for our
operation, and we expect the acquisition will be earnings enhancing from the
current financial year.

Finally, I would again like to thank my colleagues and all our staff for their
hard work and dedication that has made our present position possible.

Yours sincerely,

The Rt Hon The Lord Barnett JP PC
Chairman


CONSOLIDATED INCOME STATEMENT
                                                                                                    As restated

                                                                                            2007                   2006
                                                                      Note                 £'000                   £000

Revenue                                                                2                   2,657                  2,399

Cost of sales                                                                              (173)                  (193)

Gross profit                                                                               2,484                  2,206

Administrative expenses                                                                  (2,023)                (2,096)

Operating profit before share based payment
costs and impairment                                                                         479                    336
Share based payment costs                                                                   (18)                   (22)
Goodwill impairment                                                                            -                  (204)

Group operating profit                                                 3                     461                    110

Investment revenues                                                                            7                      1
Finance costs                                                                               (23)                   (27)

Profit on ordinary activities before taxation                                                445                     84

Taxation                                                                                    (79)                      -

Profit on ordinary activities after taxation
retained for the year                                                                        366                     84

Earnings per share                 - Basic                             4                     1.09p                0.25p

                                   - Diluted                           4                     1.07p                0.24p



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                                                            2007                   2006
                                                                                           £'000                   £000

New share issued                                                                               -                     37
Share based payment costs                                                                     18                     22

Net income recognised directly in equity                                                      18                     59

Profit for the period                                                                        366                     84

Total income and expense for the period                                                      384                    143

Opening balance                                                                            4,175                  4,032

Closing balance                                                                            4,559                  4,175




CONSOLIDATED BALANCE SHEET
                                                                                                            As restated
                                                                                               2007                2006
                                                                                              £'000               £'000

Non-current assets
Goodwill                                                                                      3,021               3,021
Other intangible assets                                                                           1                   2
Property, plant and equipment                                                                 1,158               1,140
                                                                                              4,180               4,163
Current assets
Trade and other receivables                                                                     673                 533
Cash and cash equivalents                                                                       379                 135
                                                                                              1,052                 668

Total assets                                                                                  5,232               4,831

Current liabilities
Trade and other payables                                                                      (265)               (265)

Obligations under finance leases                                                                (7)                (21)
Bank overdrafts and loans                                                                      (28)                (26)
                                                                                              (300)               (312)
Non-current liabilities
Trade and other payables                                                                       (60)                (73)
Bank loans                                                                                    (233)               (259)
Deferred tax liabilities                                                                       (79)                   -
Obligations under finance leases                                                                (1)                (12)

                                                                                              (373)               (344)

Total liabilities                                                                             (673)               (656)

Net assets                                                                                    4,559               4,175

Capital and reserves

Share capital                                                                                 3,373               3,373
Share premium                                                                                   242                 242
Other reserve                                                                                   365                 365
Retained earnings reserve                                                                       579                 195

Equity shareholders' funds                                                                    4,559               4,175



CONSOLIDATED CASH FLOW STATEMENT
                                                                                                          As restated
                                                                                               2007              2006
                                                                                              £'000             £'000

Net cash from operating activities                                                              471               377

Investing activities

Interest received                                                                                 7                 1
Purchases of property, plant and equipment                                                    (201)              (96)

Net cash used in investing activities                                                         (194)              (95)

Financing activities
Proceeds on issue of shares                                                                      17                20
Repayment of loans                                                                             (26)              (15)
Repayments of finance lease obligations                                                        (24)              (24)

Net cash used in financing activities                                                          (33)              (19)

Net increase in cash and cash equivalents                                                       244               263

Cash and cash equivalents at the beginning of year                                              135             (128)

Cash and cash equivalents at end of year                                                        379               135



NOTES

1.         Basis of preparation

IFRS 1 'First Time Adoption of International Financial Reporting Standards'
(IFRS 1) sets out the rules for an entity preparing its first IFRS financial
statements. The entity is required to determine the IFRS accounting policies in
accordance with the IFRS that are in place at the date of transition (1 January
2006) and, in general, apply them retrospectively. There are a number of
possible exemptions from the retrospective application to assist the entity in
making the transition. The Group has taken the following exemptions:

a) Business combinations: the Group has elected not to restate business
combinations prior to the transition date (1 January 2006).

b) Share-based payments: the Group has elected to exclude share-based
arrangements that were granted prior to 8 November 2002 or that have vested
prior to the transition date.

The Financial Statements have been prepared in accordance with International
Financial Reporting Standards (IFRSs). The Financial Statements have also been
prepared in accordance with IFRSs adopted by the European Union and therefore
the Group Financial Statements comply with Article 4 of the EU IAS Regulation.

2.         Revenue

The revenue and profit on ordinary activities before taxation arise from the
Group's principal activity.

The Group's revenue has been analysed by geographic area as follows:

                                                                                               2007              2006
                                                                                              £'000             £'000

United Kingdom                                                                                2,641             2,373

Republic of Ireland                                                                              16                26

                                                                                              2,657             2,399


3.         Profit for the year

                                                                                               2007              2006
Profit for the year is shown after charging / (crediting):                                    £'000             £'000

Depreciation on tangible assets                                                                 183               145

Amortisation                                                                                      1                 -
Impairment of goodwill                                                                            -               204

Government grants                                                                                 9                 9
Profit on disposal of tangible assets                                                             -               (1)

Fees paid to the auditor analysed as follows:
Audit fees (Group excluding holding company)                                                      6                 6

Audit fees (Holding company)                                                                      4                 4

Tax consultancy                                                                                   4                 3

Other review reports                                                                              6                 5


4.         Earnings per share

Basic - The calculation of basic earnings/(loss) per share is based on a profit
of £366,000 (2006 - £84,000) and on 33,726,154 (2006 - 33,543,000) ordinary
shares, being the weighted average number of ordinary shares in issue during the
year.

Diluted - The diluted earnings per share is based on the profit for the year of
£366,000 and on 34,303,098 ordinary shares as adjusted for share options below:

                                                                                               2007              2006
                                                                                              £'000             £'000

Basic weighted average number of shares                                                  33,726,154        33,543,000

Dilutive potential ordinary shares:
Dilution caused by options                                                                  576,942           797,291

Diluted weighted average number                                                          34,303,096        34,340,291

5.         Post balance sheet events

On 7 May 2008 the group acquired Envirolite Limited and its associated companies
a complementary grouping in the waste recycling sector.  The consideration of
£1.1 million was funded from own resources.

6.         Annual General Meeting

The Annual General Meeting of Mercury Recycling Group Plc will be held at Suite
One, Courthill House, 66 Water Lane, Wilmslow, Cheshire SK9 5AS on Friday 13
June 2008 at 10:00 am.




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