Unaudited Preliminary Results

Melrose PLC
20 January 2004


                                                                20 January 2004


                                  Melrose PLC


                         Unaudited Preliminary Results


                     for the period ended 31 December 2003



Melrose PLC ("Melrose" or "the Company") announces its preliminary results for
the period ended 31 December 2003.  These relate to the period from
incorporation on 13 May 2003 until 31 December 2003.



Highlights :



  • Successful flotation on 28 October 2003 raising £11.8 million (net of
    expenses)



  • Net cash of £12.7million



  • Retained loss for the period of £133,000



  • On outlook, Chairman, Christopher Miller, said



"Since our flotation three months ago we have been busy considering a number of 
potential acquisition opportunities.  Although, as you would expect, we will 
only proceed when we believe we can generate good returns for shareholders, we 
are confident of identifying a suitable acquisition in current market 
conditions."




                              CHAIRMAN'S STATEMENT



RESULTS



The Company was incorporated on 13 May 2003 and these results are in respect of
the period from that date until 31 December 2003



Turnover for the period was nil and will remain so until an acquisition is
completed.



The loss before interest and tax was £207,000 which comprised administrative
expenses relating to the approximately two month period from flotation until 31
December 2003 and includes start-up costs of £20,000.  Flotation expenses of
£278,000 have been charged to the share premium account.  Interest income for
the period was £74,000 resulting in a loss before tax of £133,000 and a loss per
share of 1 pence.



As at 31 December 2003, the Company's cash balances amounted to £12.7 million.





MELROSE



Melrose was floated on AIM in October 2003 with the intention of acquiring
companies or businesses whose operational performance can be improved for the
benefit of shareholders.  It is likely that a target will have a good market
share and will be capable of generating sustainable cash flow and profit growth.
Melrose intends to focus primarily on manufacturing and industrial related
sectors.





DIVIDENDS



As previously stated in the Prospectus the Directors do not intend to pay a
dividend until the completion of a significant acquisition.  Following such an
acquisition the Directors will determine an appropriate dividend policy.





OUTLOOK



We believe that developments in equity markets and the economy continue to
provide attractive opportunities and we look forward to 2004 with confidence.












Melrose PLC

Unaudited Profit and Loss Account

for the period ended 31st December 2003

                                                                                                   2003
                                                                                                Unaudited
                                                                            Notes                 £'000


   Turnover                                                                                         0

   Cost of sales                                                                                    0

   Gross profit                                                                                     0

   Distribution costs                                                                               0
   Administrative expenses                                                                         207


   Operating loss                                                                                 -207


   Interest payable                                                                                 0

   Interest receivable                                                                              74

   Loss on ordinary activities before and after taxation                                           -133

   Ordinary dividends on equity shares                                        2                     0

   Retained loss for the period                                                                    -133


   Loss per share

   Basic                                                                                          (1.0p)
   Diluted                                                                                        (1.0p)
















Melrose PLC

Unaudited Balance Sheet

at 31st December 2003                                                                           2003
                                                                                             Unaudited
                                                                                               £'000



   Current Assets

   Debtors: amounts falling due within one year                                                  53

   Cash at bank                                                                                12787

                                                                                               12840

   Creditors

   Amounts falling due within one year                                                           81

   Net Current assets                                                                          12759


   Net assets                                                                                  12759




   Capital and Reserves

   Called up share capital                                                                       63

   Share premium                                                                               12829

   Profit and loss account                                                                      -133

   Equity shareholders' funds                                                                  12759





Melrose PLC

Unaudited Statement of Cashflows

for the period ended 31st December 2003

                                                                                                  2003
                                                                                               Unaudited
                                                                           Notes                 £'000


Net cash outflow from operating activities                                   3                    -179


Finance income

          Interest received                                                                        74


Net cash outflow before financing                                                                 -105


Financing

          Net proceeds of ordinary shares issued                                                 12892


Increase In Cash                                                                                 12787








Melrose PLC

Notes

1)     Basis of preparation

The preliminary results have been prepared under the historical cost convention 
and in accordance with applicable accounting standards.


2)     Dividends

As stated in the placement Prospectus the Directors do not intend to pay a
dividend until the completion of a significant acquisition. Following such an
acquisition the Directors will determine an appropriate dividend policy.

3)     Note to the statement of cash flows



Reconciliation of operating loss to net cash outflow from operating activities

                                                       2003
                                                    Unaudited
                                                      £'000


Operating loss                                         -207

Increase in debtors                                     -53

Increase in creditors                                   81

Net cash outflow from operating                        -179
activities



4)     Report and Accounts

The financial information set out in this preliminary announcement does not
constitute the Company's statutory accounts for the period ended 31 December
2003, but is derived from those accounts.

The statutory accounts for the period ended 31 December 2003 will be prepared
following accounting policies consistent with those set out in the Prospectus
dated 28 October 2003.

The statutory accounts for the period ended 31 December 2003 will be finalised
on the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's annual general meeting.


ENQUIRIES

Melrose PLC
Simon Peckham               020 7716 5820

M: Communications
Nick Miles                  020 7153 1539








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