Interim Results

Mercury Recycling Group PLC
24 September 2002



                          MERCURY RECYCLING GROUP PLC


CHAIRMAN'S STATEMENT

I am pleased to present the Group's Report for the 6 months to 20 June 2002.

This is the first occasion when I have been able to present a clear set of
accounts.  The previous period to 30 June 2001 included just 2 months trading of
Mercury Recycling Limited ('MRL'), the only trading subsidiary of the Group.
Therefore, on a strictly comparable basis, sales show growth from £305,000 to
£365,000 i.e. approximately 20%.  The current trading indicates that the second
half should be at least at the same level.

The cash position, net of long term loans which have been reduced by 50%, is at
approximately the same level as last year.  This has been made possible by
ensuring that tight financial controls are in place.  The current figures also
include goodwill amortisation of £82,000.  This was referred to in my report on
the full year figures when I indicated the Board's decision to write off the
goodwill on the acquisition of MRL over 20 years.  The Directors do not believe
it would be appropriate to declare a dividend at this stage.

It will be clear from the above that MRL, whilst still awaiting the Directive on
Waste Electrical and Electronic Equipment ('WEEE'), continues to increase sales
and operating profit.  In advance of WEEE, we now have a new Landfill Directive
and an expected Ministerial statement, under which fluorescent tubes and bulbs
will be treated as 'Hazardous Waste'.  Whilst it does not yet insist on
recycling, the Directive will require that lighting tubes and bulbs must only
use specified landfill sites.  This will undoubtedly help to increase our sales.
In any event, we are already finding major customers in both the public and
private sectors, who recognise the need to recycle without waiting for the WEEE
Directive to be implemented.  I remain confident that the Group is in a strong
position to benefit from the Government and EU proposals, and the clear public
desire to be environmentally friendly.  This will ensure that the Group sees the
growth of recycling which is of course its core business.

As indicated in my statement with the Annual Report and Accounts, the Group is
continuing to discuss with suitable partners, new possibilities for expansion,
including other recycling areas.  I will of course inform shareholders as and
when there is an agreed proposal.

The Rt Hon The Lord Barnett JP PC
Chairman
24 September 2002


                          MERCURY RECYCLING GROUP PLC


GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2002

                                   Mercury           Mercury          Total       6 Months             Year
                                 Recycling         Recycling       6 Months          ended            ended
                                   Limited         Group PLC          ended        30.6.01         31.12.01    
                                     £'000             £'000        30.6.02          £'000            £'000
                                                                      £'000                           

Turnover                               365                 -            365             97              405
Cost of Sales                         (39)                 -           (39)            (5)             (33)

Gross Profit                           326                 -            326             92              372

Administrative expenses              (312)              (56)          (368)          (131)            (463)
Restructuring and acquisition
costs (non recurring)                    -                 -              -           (63)             (63)
                                       
Other operating income                   4                 -              4              -                3

Group operating profit/(loss)
before goodwill amortisation            18              (56)           (38)          (102)            (151)
                                        

Goodwill amortisation                                                  (82)           (27)            (110)

Group operating loss                                                  (120)          (129)            (261)

Profit on disposal of                                                     -             20               20
investment

Loss on ordinary activities
before interest                                                       (120)          (109)            (241)
                                                                    
Interest receivable                                                       4              6               10
Interest payable                                                        (3)            (9)             (16)

Loss on ordinary activities
before taxation                                                       (119)          (112)            (247)
                                                                     
Taxation                                                                  -              -                -
Loss on ordinary activities
after taxation retained for the
period                                                                (119)          (112)            (247)

Earnings per share:          Basic (pence)                           (0.47)         (0.99)           (1.70)
                           Diluted (pence)                           (0.47)         (0.98)           (1.69)



1 - Earnings per share

The calculation of basic earnings per share is based upon the loss for the
period and the weighted-average number of 25,118,000 (2001 - first half -
11,322,444) shares in issue during the period.

The diluted earnings per share is based upon the loss for the period and the
number of shares in issue as follows:
                                                               6 months to       6 months to         Year to
                                                                   30.6.02           30.6.01        31.12.01
                                                                 thousands         thousands       thousands

Weighted-average number of shares                                   25,118            11,322          14,575
Dilution-share options in issue                                          -               100              17
                                                                    25,118            11,422          14,592


GROUP BALANCE SHEET
as at 30 June 2002

                                                  As at 30.6.02        As at 30.6.01       As at 31.12.01
                                                          £'000                £'000                £'000
Fixed assets

Tangible assets                                             279                  312                  301
Intangible assets                                         3,105                3,270                3,187
                                                          3,384                3,582                3,488
Current assets

Stock                                                         -                    2                    4
Debtors                                                     130                  193                  130
Cash at hand and in bank                                    266                  378                  392
                                                            396                  573                  526
Creditors: amounts due within one year                    (103)                (110)                (230)

Net current assets                                          293                  463                  296

Creditors: amounts due after more than one
year                                                      (117)                (233)                (101)
                                                        
Accruals and deferred income                                (2)                    -                  (6)


Total assets less current liabilities                     3,558                3,812                3,677


Capital and reserves

Called up share capital                                   2,512                2,512                2,512
Share premium account                                     1,523                1,523                1,523
Merger reserve                                            (111)                (111)                (111)
Profit and loss account                                   (366)                (112)                (247)

Equity shareholders' funds                                3,558                3,812                3,677



1 - Basis of preparation

The interim financial information has been prepared on the basis of the
accounting policies set out in the accounts for the year ended 31 December 2001
other than the adoption of the requirements of FRS 19 for the first time in
these financial statements.  The interim financial information is unaudited.
The financial information does not constitute statutory accounts as defined by
section 240 of the Companies Act 1985.  Full accounts of the company for the
year ended 31 December 2001, on which the Auditors gave an unqualified report,
have been delivered to the Registrar of Companies.  These accounts consolidate
the accounts of Mercury Recycling Group Plc and all of its wholly owned
subsidiaries.  The goodwill arising on the acquisition of Mercury Recycling
Limited has been capitalised and amortised over the Directors' estimate of its
useful life.


2 - Copies of report

Copies of this interim statement will be despatched to shareholders and will be
available to the public at the Registered Office, Unit G, Canalside North, John
Gilbert Way, Trafford Park, Manchester  M17 1DP.


GROUP CASH FLOW STATEMENT
for the six months ended 30 June 2002


                                                 6 Months ended       6 Months ended           Year ended
                                                        30.6.02              30.6.01             31.12.01
                                                          £'000                £'000                £'000

Net cash outflow from operating activities                 (11)                 (69)                (137)

Returns on investment and servicing of finance
Interest paid                                               (3)                  (9)                 (16)
Interest received                                             4                    6                   10

Capital expenditure and financial investment
Receipts from sale of investment                              -                  100                  100
Receipts from sale of tangible assets                         4                    -                    -
Purchase of tangible fixed assets                           (3)                  (7)                  (9)

Acquisitions

Cash acquired with subsidiary undertakings                    -                  111                (240)
                                                            (9)                  132                (292)
Financing

Repayment of loans                                        (117)                (140)                (140)
Capital element of hire purchase                              -                  (4)                 (10)
Issue of share capital (net of expenses)                      -                  740                  834

Decrease in cash in period                                (126)                  728                  392



Reconciliation of operating loss to net cash     6 Months ended       6 Months ended           Year ended
outflow from operating activities                       30.6.02              30.6.01             31.12.01
                                                          £'000                £'000                £'000

Operating loss                                            (120)                (129)                (261)
Depreciation                                                 18                    6                   20
Amortisation of goodwill                                     82                   27                  110
Loss on disposal of assets                                    3                    -                    -
Decrease in stocks                                            4                    2                    1
Decrease/(increase) in debtors                                -                    8                 (22)
Increase in creditors                                         6                   17                    9
(Increase)/decrease accruals                                (4)                    -                    6

Net cash outflow from operating activities                 (11)                 (69)                (137)




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