Final Results

Mentmore Abbey Plc
3 July 2001


PART 1

FOR IMMEDIATE RELEASE                                   3 July 2001



                              MENTMORE ABBEY plc

                     PRELIMINARY ANNOUNCEMENT OF RESULTS

                       FOR THE YEAR ENDED 30 APRIL 2001

A year of strong growth and investment for the future

          -     EBITDA increased 57% to £36.5 million

          -     total operating profits of £31.8 million, up 57% on 2000

          -     profit before tax of £21.6 million, up 38% on 2000

          -     earnings per share increased 12% to 9.86p

          -     interest covered 2.9 times by total operating profit (2000:
                4.3 times)

     All figures before goodwill amortisation and 2000 exceptional costs

      + Net debt at 30 April 2001 was £156.3 million giving gearing of 77%
        (2000: 61%)

      + Proposed final dividend of 0.82p per share giving a total of 1.222p
        per share (2000: 1.222p per share)

      + Personal storage

        -     operating profits increased 40% to £7.2 million
        -     £27.5 million acquisition of British Self Storage in June 2000
        -     now operating from 38 locations; 40% of this space is less than   
              two years old
        -     £7 million acquisition in September 2000 of Une Piece en Plus,
              leading operator in Paris

      + Serviced business space

        -     operating profits £20.1 million, up 75% (2000: eight month period
              only)
        -     Synex Network Services acquisition in January 2001 for
              national telecommunications roll-out
        -     224 centres, and 700,000 sq.ft. of space under development
        -     active investment programme to improve service offerings
              and upgrade our business centres

      + Records management

        -     our share (49.9%) of operating profits was £2.0 million, reduced  
              by 18% on last year
        -     investment programme continuing after introduction of new and
              improved IT systems
        -     operational changes delivering improved performance
        -     acquisition in December 2000 of Datavault, and moved into Eire in
              April 2001

      + Profit on property disposals of £2.5million (2000: £1.0 million)

      + May 2001 sold 20% stake in Workspace Group PLC for approximately £30
        million after costs, to be re-invested in our business. The £30
        million proceeds include an additional £0.7m, which the company
        received on 14 June 2001 pursuant to the underwriting arrangements for
        the disposal of its interest. Proceeds reduce gearing to 62%.

Commenting on the results and prospects, Nick Smith, Chairman said:

'These results demonstrate the strength of our business and its ability to
grow, these results also reflect the initial impact of our previously
announced investment programme. The results have encouraged us to accelerate
the process. The necessary investment will slow our year on year growth in the
near future; but will leave your company stronger and even better equipped to
enjoy long term growth. We have little doubt that these investments are in the
long term interests of shareholders.'



Contacts:
Mentmore Abbey plc                                       020 8946 3159
Nick Smith, Chairman
Kim Taylor-Smith, Chief executive
Clive Drysdale, Finance director

Bridgewell Corporate Finance                             020 7626 3322
Ian Dighe
Greg Aldridge

Dresdner Kleinwort Wasserstein                           020 7623 8000
Charles Batten

Buchanan Communications                                  020 7466 5000
Charles Ryland
Catherine Miles

EDITORS NOTE

Personal storage

The group has 38 centres providing self-managed storage units for personal
customers and small and medium-sized businesses on flexible terms.

Serviced business space

The group has 224 serviced business space centres offering trading or office
space on flexible terms to businesses of all kinds.

Records management

Our records management business is a partnership with Iron Mountain
Incorporated, the world's leading records and information management services
company; servicing customers across Europe.



CHAIRMAN'S STATEMENT

Building a service ethic

Our business has grown strongly this year and we have started an investment
programme which will significantly improve the value we offer to our customers
and thereby the returns that we earn. By investing to upgrade our centres and
adding services we will be better placed to satisfy the needs of tomorrow's
market.

Overview

I am again pleased to report a year of continued growth in profits.

During the year our business has grown and we have started an investment
programme that will significantly improve the value we offer to our customers
and thereby the returns that we earn. Strategically we have recognised that by
investing to upgrade the specification of our centres and adding services we
will be better placed to satisfy the needs of tomorrow's market.

Results

Personal storage improved operating profits by 40% while investing in record
levels of new space. We acquired British Self-Storage (BSS), the third largest
UK operator in June 2000 and Une Piece en Plus, the leading operator in the
Paris market in September 2000. Both businesses have operated ahead of
expectations. We added 17 new stores, including ten from the acquisitions. 40%
of our stores are now less than two years old leaving plenty of scope for
future earnings growth. We continue to progress with our re-branding; this
newer, more modern profile provides a sound base for our ongoing exploitation
of this growing but immature market. Recognising the opportunities in Paris we
intend to accelerate our investment in this young but attractive market.

Serviced business space improved operating profits by 75%. They continue to
operate at high occupancy levels and we have added a net 0.5 million sq. ft.
in the year. This is less new space than in previous years as we declined to
pay prices that prejudice our ability to make attractive returns. We have an
active programme to improve the service levels and standards of many of our
business centres.

As part of the new services we acquired Synex Network Services in January
2001, providing our customers with lower cost communications and higher
service levels. This service has been exceptionally well received by our
customers and we are working to accelerate the nationwide roll out programme.
Once complete we will be able to provide additional products to our customers.

Following market research we have consultants working to update the successful
InShops product. This will make the product more attractive to both retailers
and customers alike and enable us to generate a better return from this
business.

All of these initiatives will improve the returns we can generate.

Iron Mountain Europe ('IME'), our joint venture records management company,
had a difficult year as we invested to rectify a poor operational position
that was highlighted by new and improved IT systems. We have addressed the
most significant issues, strengthened the management, restored our good name
in the market place and are seeing reductions in costs. As a result of the
changes made we have secured a number of major contracts and are now
increasing our operating margins. In due course we expect this business to
match the attractive returns generated in this industry by our US partner.

In December 2000, IME acquired and integrated Datavault, the fourth largest
records management company in the UK market, and in April 2001 moved into
Eire.

In May 2001 we sold our 20% stake in Workspace Group PLC. The proceeds of some
£30 million (which include an additional £0.7 million received in June
pursuant to the disposal underwriting agreement) will initially reduce our
debt levels but will be re-invested when strategically sound opportunities can
be identified that generate the appropriate level of return.



Dividend

We are proposing an unchanged final dividend of 0.82p bringing the total for
the year to 1.222p.

People

All of these developments put a huge strain on all our people. Without their
efforts and skills we would achieve nothing and I know I speak for all
shareholders in congratulating them on their achievements and thanking them
for their efforts.

Michael Woodhead, our senior non-executive director, has decided to retire at
this year's annual general meeting. Michael joined us from the Birkby board
and has provided valuable help in ensuring the integration has progressed so
well. We thank him and wish him well.

We have commenced the search for a new non-executive director and expect to be
able to announce an appointment in due course.

Prospects

Parts of these results reflect the benefits of our investment programme. This
will provide higher value services to our growing customer base across each of
our activities. These improvements are in line with market requirements and
will generate higher returns on our capital base. The early results have
encouraged us to accelerate the process. The necessary investment will slow
our year on year growth in the near future as we incur the initial losses
inherent in space management through opening new sites and the redevelopment
of existing space. It will, however, leave your company stronger and even
better equipped to enjoy long term growth. We have little doubt that these
investments are in the long term interests of shareholders.



Chief Executive's statement

Investing for the future

Space management, including personal storage, serviced business space and
records management, is one of the fastest-growing business sectors in Europe.
Mentmore Abbey is a market leader and is the organisation best placed to
capitalise on the many opportunities that this still immature marketplace will
continue to present.

Integrated space management solutions

The provision and management of storage facilities and business space are
naturally complementary activities. Many of our business customers require
both and can often be accommodated within the same premises in a mix
determined by demand and the particular advantages of the property in
question. Taken alone, each one of our three central activities clearly has
excellent prospects. However, by putting them together - and taking advantage
of the many synergies that arise - we have created a business that is uniquely
placed to achieve successful long-term growth.

As we enter the current year Mentmore Abbey faces an exciting and challenging
future. Each of the interlocking markets in which we operate is at an early
stage of development and, given intelligent and timely investment and a
willingness to innovate, there are tremendous opportunities for participation
in this growth.

We've already shown, through our experience with Synex Network Services
('Synex') and through successful cross-selling to customers of personal
storage and business space, how rapidly new business can be developed from our
existing customer base.

We are intensifing our efforts to improve and diversify the service offered to
both new and existing customers. We are extending the facilities within our
existing centres and developing more purpose built sites. We are continually
exploring every opportunity to expand the range of associated services we
offer to storage and business space customers, experimenting with value-added
services such as 'pick up and store', which integrates transport into the
storage offer. We are pushing hard to increase the profit we earn from
ancillary merchandising activities such as insurance and packaging for storage
customers and office equipment and telecommunications provision for business
space occupants.

We will continue the roll-out of our 'spaces' identity and the programme of
refurbishment, and we will extend our marketing effort so that the spaces'
public profile is higher than that of any of our competitors' brands.

We will make the investment necessary to ensure that our records management
business achieves success in Europe which is comparable to that already
enjoyed by our partner in the United States.

We are investing in the infrastucture of all our businesses to create
stronger, more flexible management, a better trained workforce and the deeply
ingrained service culture which will ensure long-term success.

I am confident that, by taking the initiative and making these investments
now, we can substantially increase the value we offer to our customers and
thereby ensure profitability and growth.



Operating review

Personal storage

For both domestic and business customers, personal storage offers flexibility
and convenience. Domestic customers often like to store items as part of the
process of moving. Commercial users often use personal storage for storing
documents which they can easily retrieve, seasonal stock, office equipment
during a move or as a small-scale distribution facility.

Our personal storage centres provide individual lockable units for use by
private and business customers. With an emphasis on security and ease of
access our customers can access their units at anytime at no additional
charge. Spaces personal storage is a leading operator in the UK and a business
with enormous potential. Although the numbers of centres are increasing, per
capita penetration is only a fraction of that seen in the more developed
United States market. In Europe the future prospects are, if anything, even
more exciting.

We were first into the UK market, catering to every kind of domestic and
business storage need, and we believe we have been consistently the country's
most profitable operator. We have already secured personal storage centres in
prominent locations in many of the major cities in the UK and our future
strategy will be to open further centres around these existing locations. This
offers convenience to our customers and efficiency to our operation. Nearly
half of our available space is located in and around central London, with more
space under development within the metropolitan area.

Already in 2001 we have opened new sites in Birmingham, Manchester and London.
Construction has started on two joint storage and serviced business space
centres in Birmingham and Bedford. When complete they will provide a further
114,000 sq ft of storage space and 103,000 sq ft of serviced business space.

We successfully completed the integration of sites acquired from British Self
Storage in Bristol, Bath, Manchester and Reading. The site at Reading is the
largest purpose-built personal storage facility in Europe and provides our
customers with 24 hour access and drive through units.

We launched the 'spaces' personal storage brand that will eventually be
implemented across all our personal storage facilities. Wherever the signage
has been applied it has generated significant increases in the number of
enquiries we receive. We intend to apply the spaces branding to all of our
sites as they are refurbished over the coming eighteen months.

This year the division made its first move into continental Europe. In
September we acquired Une Piece en Plus ('UPP'), the leading personal storage
business in the Paris market. UPP, with four storage centres and a strong
management team, has traded above our expectations from the start and it
quickly became apparent that opportunities in the Paris market are
significantly greater than we anticipated. Consequently, a decision to invest
more heavily has resulted in the acquisition of two new centrally located
sites, in East Paris and Montparnasse, and the expansion of existing space.
When this work is complete UPP will have in excess of 250,000 square feet of
lettable space.

Taken together, these developments have resulted in the addition of almost a
million square feet of new capacity and an increase in the number of sites to
38 (including 6 in France) compared to 21 at the previous year end. The
annualised storage revenue as at 30 April 2001 increased by 74% to £17 million
of which 35% arises from organic growth.

Despite investing at record levels in new space and the re-branding and
upgrading of existing centres, we improved operating profits by 40%, although
as a consequence of so many new sites coming on-stream, operating margins
reduced slightly to 44%. Meanwhile other income increased to 8.4% of revenues
as we worked hard to promote services such as packaging and insurance.

Most significantly, as a consequence of the investments we've made during the
past year the balance of our portfolio has fundamentally changed. Now 40% of
our space is less than two years old. Since new sites typically take around
eighteen months to reach break-even this profile augurs extremely well for the
future profitability of the personal storage business.

Serviced business space

Our national network of serviced business space provides flexible
accommodation to a wide range of customers. Above all, our customers need
flexibility. They need space that can be rapidly and precisely adapted to
their specific requirements, allowing them to establish quickly and to modify
their accommodation as their circumstances change.

Our national network of serviced business space provides flexible
accommodation to a wide range of customers. Our target market is the 1.5
million small to medium sized enterprises (SMEs) that make up ninety four
percent of UK business. 7,700 are already our customers and the numbers are
growing fast thereby making us the largest providers of this type of business
accommodation in the UK with 224 centres, from Scotland to the South East of
England.

Above all, our customers need flexibility. They need space that can be rapidly
and precisely adapted to their specific requirements, allowing them to
establish quickly and to modify their accommodation as their circumstances
change - without onerous contracts or lengthy negotiations.

They also need services: everything from compressed air to telephones and
office equipment to broadband Internet access. We can deliver all these
profitably, yet at competitive rates. In January the group acquired its own
telecommunications provider in the form of Synex. 150 customers signed up with
Synex during the first quarter under our ownership and in May we were
accredited by Energis plc as being the UK's fastest growing switchless
reseller.

We now intend to expand the service to include broadband Internet access and
discounted mobile phone packages.

Serviced business space enjoyed an extremely successful year, achieving
consistently high levels of occupancy at every location and an overall 75%
increase in operating profit contribution to the group. There is a shift
towards office and studio accomodation with customers demanding better quality
accommodation and a greater range of services. Over the coming years we will
prioritise investment in reformatting and upgrading our centres.

Throughout the year the cost of new sites suitable for development remained
high. So our focus has been on maximising the development of existing sites as
well as generating further income by improving and extending services. We have
over 700,000 sq ft of conversion and development work in progress. This policy
is already reaping significant rewards and we see many new opportunities being
identified, for facilities that offer an enhanced standard of office and light
industrial accommodation and an extended range of services.

Our service revenue has increased by 36%, in part due to the success of Synex
and their ability to provide a comprehensive and efficient telephony service
to our customers. This change in emphasis enables us to increase our return on
investment and purchase sites which previously did not meet our investment
return. It is particularly pleasing to see the development of our serviced
business centres in London and this will be a target area for us this year.

During the year we opened ten new centres - in Liverpool, London, Birmingham
and the North East - and continued development of a further ten at locations
that include Leeds, Manchester, Nottingham and Birmingham. The Birmingham site
is just a third of a mile from the City Centre and will provide 73,000 square
feet of combined workspace, storage and fully-serviced office facilities when
complete.

We sold eleven sites generating a profit of £2.5 million (2000: £1.0 million).
Where centres do not meet our criteria for growth and the opportunity arises
we will sell and re-invest the proceeds elsewhere. This is a recurring feature
of the group and demonstrates our ability to maximise alternative use values.

Records management

The market for records management is undergoing rapid transformation. To be a
serious provider in this business it is no longer good enough simply to
provide space for secure records storage. Customers are demanding more
sophisticated information management as well as faster retrieval, better
tracking and more active management, via the Internet, of their paper
documents and magnetic media.

Like those for personal storage and business accommodation, the market for
records management is undergoing rapid transformation. To be a serious
provider in this business it is no longer good enough simply to supply space
for secure records storage. Customers are demanding more sophisticated
information management as well as faster retrieval, better tracking and more
active management, via the Internet, of their paper documents and magnetic
media.

Through Iron Mountain Europe ('IME'), our joint venture with Iron Mountain,
the world's leading records management company, we are building a highly
sophisticated, technologically advanced operation that will soon enable us to
achieve the same commanding lead in records management that we hold in
personal storage and serviced business space. The re-branding of our records
management business with the Iron Mountain corporate identity has been
positively received by customers everywhere. It has enabled us to offer them
technology and expertise developed over fifty years by the largest and most
successful organisation in the world for this service.

The adaptation for European customers of business processes and software
designed initially for the American market has not been without its
difficulties. This is reflected in IME's performance which, although
profitable, did not meet with our expectations.

The installation of new systems highlighted a poor operational position. This
led to a fall in customer service standards, higher operational costs and a
consequent decline in profitability.

Following major management restructuring and further aggressive investment in
human resources, systems and IT assets, we are now confident that IME is
better placed than any of its competitors to exploit the enormous market
potential that arises as growing numbers of European companies begin
outsourcing their records management.

We have already seen improved customer service, sales price increases and
major new contract wins. Our labour and transport costs are on an improving
trend and we are confident that results from this business will continue to
improve.

Investment in records management activity is born out of growth. Sales success
has consumed storage capacity and we are embarking on the construction of a
major new facility in London. It will be operational in the spring of 2002 and
will be one of the largest such facilities in Europe.

IME is pursuing a three-year strategy that will restore profitability in the
UK and increase penetration of key industry sectors including financial
services, insurance and healthcare across Europe. We expect this business to
become a major contributor to group profits.



Financial review

Cash flow supports investment

EBITDA (earnings before interest, taxes, depreciation and amortisation) is a
key performance indicator for the group - it broadly equates to cash flow
generated from operations and is the principal component in determining the
group's debt capacity. EBITDA for the year was £36.5 million (2000: £23.3
million) growing 57% on last year.

Group results

Group turnover (excluding our share from joint ventures) increased by 54% to £
75.0 million (2000: £48.8 million). Our share of turnover at Iron Mountain
Europe, our records management joint venture, was £19.1 million (2000: £13.3
million), an increase of 43%. Acquisitions in the year contributed £4.4
million and £2.9 million to group and share of joint venture turnover
respectively.

Before goodwill amortisation and exceptionals total operating profits grew by
£11.5 million or 57% to £31.8 million (2000: £20.3 million). Part of the
absolute increase reflects the inclusion of serviced business space for a full
year (last year only eight months). Acquisitions contributed £1.8 million to
total operating profit. Operating margins increased from 32.6% to 33.8%.

Net interest cost increased from £4.8 million to £10.9 million mainly due to
the financing of acquisitions through increased borrowings. Before goodwill
amortisation and exceptionals interest cost for the year was covered 2.9 times
by total operating profit (2000: 4.3 times).

The group's tax charge represents an effective rate of 20% (2000: 20%). This
continues to be lower than the standard rate of tax of 30% due to differences
between accounting profits and those assessable for taxation - principally in
relation to capital expenditure.

Before goodwill amortisation and exceptionals profit after tax and earnings
per share increased by 38% and 12% to £17.3 million and 9.86 pence
respectively. The lower percentage increase in earnings per share reflects the
higher average number of shares in issue during the year, largely due to the
acquisition of our serviced business space operation in September 1999.

Goodwill amortisation of £6.3 million (2000: £3.0 million) has been charged
against total operating profit. There were no exceptional items in the current
year (2000: £0.6 million after tax). After taking these charges into account
profit after tax and earnings per share were £11.0 million (2000: £8.8
million) and 6.29 pence (2000: 6.20 pence) respectively.

Segmental analysis

Segmental information which shows sales, operating profit and operational net
assets for each division of the group is provided in note 1 to the preliminary
statement.

This year the segment categories have been expanded from that previously
reported to separately identify the financial effect of the group's management
of its property assets which was previously amalgamated within serviced
business space. Whilst this activity is an ongoing and important part of the
group's operations it has potential to distort the underlying performance of
the serviced business space division. Accordingly it was considered
appropriate to provide separate disclosure to enable shareholders to properly
assess the performance of the group. Comparative figures have been adjusted in
the segmental analysis to reflect this change.

Corporate activity

During the year the group completed three acquisitions for a total
consideration of £35.4 million. Other than in respect of £0.3 million of new
shares issued the consideration was funded by increased borrowings.

Iron Mountain Europe made four new acquisitions and purchased the outstanding
minority shareholding in one existing subsidiary for a total consideration of
£31.7 million. A mixture of shareholder loans, bank debt and the issue of new
shares to the joint venture partners funded the acquisitions.




Acquisitions:

June 2000                          Personal storage                     UK
British Self Storage

September 2000                     Personal storage                     France
Une Piece en Plus

November 2000                      Records and information management   Germany
Secur'Archiv (minority remaining)

December 2000                      Records and information management   UK
Datavault

January 2001                       Records and information management   UK
Datacare                           Serviced business space              UK
Synex Network Services

February 2001                      Records and information management   UK
Archive Services

Cash flows

The group continues to deliver strong operating cash flows which it then
reinvests to secure future earnings growth. Operating activities generated £
33.2 million (2000: £23.8 million) and funded capital expenditure of £26.1
million (2000: £23.6 million).

Debt funding of acquisitions resulted in interest payments increasing by £5.5
million to £8.3 million. Tax payments reduced to £1.7 million (2000: £4.4
million) following last year's increase due to the change in basis of tax
remittance. Loan funding of Iron Mountain Europe was £1.9 million (2000: £13.5
million) and cash outflow in respect of acquisitions was £31.1 million (2000:
£68.8 million).

Cash outflow before financing was £37.3 million (2000: £90.6 million) and was
primarily funded by an increase in borrowings.

Balance sheet

The group's investment in Workspace Group PLC, which had a cost of £20.2
million, was transferred from fixed to current assets in the latter part of
the year. It was subsequently sold on 21 May for approximately £30.0 million
(after taking into account costs).

Net debt at 30 April 2001 amounted to £156.3 million (2000: £107.6 million)
and comprised bank debt of £148.1 million (2000: £107.6 million) and deferred
acquisition loan notes of £8.2 million (2000: £nil). Net assets at 30 April
2001 were £202.6 million giving gearing of 77% (2000: 61%). This reduced to
62% following the receipt of the Workspace sale proceeds.

Equity shareholders funds increased by £24.9 million in the year as a result
of the retained profit for the year of £8.8 million, shares issued to fund
acquisitions and in respect of share options being exercised amounting to £
15.9 million and after adding exchange differences on overseas operations of £
0.2 million.

Treasury management

The group is primarily exposed to interest rate, liquidity and foreign
exchange risks. These are managed at group level and are controlled by the
Board. Treasury management is undertaken to minimise these risks with
transactions only being made in relation to underlying business requirements.
There are no transactions undertaken of a speculative nature and financial
instruments are not traded. The group's policies are outlined below.

Interest rate risk

The group's policy is to minimise interest cost. Exposure to interest rate
movements on group borrowings is managed by maintaining a mixture of fixed and
variable rate financing. Fixed interest rates are usually achieved through the
use of interest rate swaps. The group also uses financial instruments which
cap interest rate exposure and allow interest rates to fluctuate within upper
and lower limits. The relevant proportion of each type of financing is
adjusted to take account of prevailing market conditions.

At 30 April 2001, after taking into account swaps, £10 million of group
borrowings were fixed and £75 million operated within specified upper and
lower interest rate limits.

Liquidity risk

The group's policy is to maintain a mixture of committed and uncommitted
borrowing facilities with varying dates of maturity to meet anticipated
borrowing requirements in relation to its current business plan. Committed
facilities are maintained to cover what is perceived as core debt with
uncommitted facilities maintained to support day-to-day operations. The
primary source of funds is bank debt. The level and type of facility is
regularly reviewed, particularly in the event of corporate transactions.

At 30 April 2001 the group's UK banking facilities amounted to £172 million.
The principal elements of this were:


  * a £105 million committed facility of which £70 million is an amortising
    term loan with the final repayment due in February 2007 and £35 million is
    a revolving credit facility with a bullet repayment due in February 2007;

  * a £60 million uncommitted facility. £45 million of this has been
    maintained and is due for review in June 2002 and £15 million was allowed
    to lapse following the year end.

In addition, the group has bank facilities in France amounting to FRF 17.5
million and a Dutch Guilder loan of NLG 8.6 million.

As at 30 April 2001 the group had unutilised bank facilities of £19.2 million.
During the year the group complied with all debt covenants.

Foreign exchange risk

Although the group is becoming more exposed to foreign exchange risk due to
its expansion in Continental Europe it still remains immaterial to the group
as a whole. The group's policy covers three areas of exposure - balance sheet
net assets, earnings and transactions:


  * where considered material balance sheet net assets are protected from
    currency exposures by borrowing in relevant currencies;

  * at present the group does not protect earnings of overseas
    operations against currency fluctuations;

  * foreign currency transactions, where significant, are protected by
    way of forward exchange contracts.

At 30 April 2001 the group had no forward exchange contracts.




Group profit and loss account
for the year ended 30 April 2001
     
                                                               2001      2000
                                                              £'000     £'000
                                                        Notes
Turnover                                                  1   75,019   48,788

Continuing operations:
Group and share of joint venture                              89,662   60,275
Less: group's share of joint venture                        (19,074) (13,338)
Group                                                         70,588   46,937
Acquisitions                                                   4,431        -
                                                              75,019   46,937
Discontinued operations                                            -    1,851
                                                              75,019   48,788

Cost of sales                                               (38,502) (24,569)
Gross profit                                                  36,517   24,219
Administrative expenses                                     (12,048) (10,000)

Operating profit                                          2   24,469   14,219
Continuing operations:
Existing activities                                           28,528   17,336
Acquisitions (£152,000 loss after goodwill                     1,275        -
amortisation)
Goodwill amortisation and exceptionals                       (5,334)  (3,637)
                                                              24,469   13,699
Discontinued activities                                            -      520
                                                              24,469   14,219
Share of operating profit in joint venture:
Before goodwill amortisation                                   1,955    2,398
Goodwill amortisation                                          (917)    (402)
                                                               1,038    1,996
Total operating profit                                    1   25,507   16,215

Before goodwill amortisation and exceptionals                 31,758   20,254
Goodwill amortisation and exceptionals                       (6,251)  (4,039)

Loss on disposal of operations                            3        -    (467)
Income from other fixed asset investments                        683      190
Profit on ordinary activities before interest                 26,190   15,938
Net interest payable                                      4 (10,854)  (4,754)

Profit on ordinary activities before taxation                 15,336   11,184
Taxation                                                  5  (4,322)  (2,336)
Profit on ordinary activities after taxation                  11,014    8,848
Before goodwill amortisation and exceptionals                 17,265   12,515
Goodwill amortisation and exceptionals                       (6,251)  (3,667)

Dividends                                                 6  (2,237)  (2,099)
Retained profit for the year                                   8,777    6,749

Earnings per share                                        7
Basic                                                          6.29p    6.20p
Basic before goodwill amortisation and exceptionals            9.86p    8.77p
Diluted                                                        6.14p    6.08p
Diluted before goodwill amortisation and exceptionals          9.63p    8.60p
Dividends per share                                           1.222p   1.222p



Group balance sheet

at 30 April 2001
                                                                2001     2000
                                                     Notes     £'000    £'000   
       

Fixed assets
Intangible assets                                    8       106,508   76,005
Tangible assets                                      9       214,416  179,505
Investments                                         10
IME joint venture                                             34,064   20,056
- share of gross assets                                       58,708   33,460
- share of gross liabilities                                (40,776) (26,916)
- share of net assets                                         17,932    6,544
- loans to joint venture                                      16,132   13,512
Own shares                                                       222      258
Other                                                            250   20,488
                                                             355,460  296,312
Current assets
Stocks                                              11         2,315    1,815
Assets held for resale                              11         5,231    6,875
Debtors                                             12         9,491    8,763
Investments                                         13        20,238        -
Cash at bank and in hand                                       8,465      615
                                                              45,740   18,068

Creditors: amounts falling due within one year      14      (49,560) (29,293)
Net current liabilities                                      (3,820) (11,225)
Total assets less current liabilities                        351,640  285,087

Creditors: amounts falling due after more than one  15     (148,199)(106,589)
year

Provisions for liabilities and charges              16         (853)    (842)
Net assets                                                   202,588  177,656

Capital and reserves
Called up share capital                                       18,097   17,186
Share premium account                                        129,804  114,843
Other reserve                                                 27,226   27,226
Profit and loss account                                       27,461   18,401

Equity shareholders' funds                                   202,588  177,656



Group cash flow statement

for the year ended 30 April 2001

                                                                2001     2000
                                                    Notes      £'000    £'000

Cash flow from operating activities                 19(a)     33,219   23,792

Returns on investments and servicing of finance     19(b)    (7,619)  (2,646)

UK corporation tax                                           (1,692)  (4,357)

Capital expenditure                                 19(b)   (26,078) (23,634)

Loans made to joint venture                                  (1,929) (13,512)

Acquisitions and disposals                          19(b)   (31,056) (68,845)

Equity dividends paid                                        (2,162)  (1,367)

Cash outflow before financing                               (37,317) (90,569)

Financing
- issue of shares                                              3,259      290
- increase in debt                                  19(b)     39,268   73,722
Increase/(decrease) in cash in the year                        5,210 (16,557)



Reconciliation of net cash flow to movement in net debt
for the year ended 30 April 2001
                                                                2001     2000
                                                     Notes     £'000    £'000


Increase/(decrease) in cash in the year                        5,210 (16,557)
Cash inflow from change in debt and lease financing         (39,268) (73,722)

Change in net debt resulting from cash flows                (34,058) (90,279)
Loans and finance leases acquired with subsidiary            (6,141) (33,000)
undertakings
Non-cash movements                                           (8,531)      183

Movement in net debt in the year                            (48,730)(123,096)
Net debt at 1 May 2000                                     (107,621)   15,475
Net debt at 30 April 2001                           19(c)  (156,351)(107,621)




Statement of total recognised gains and losses
for the year ended 30 April 2001

                                                                2001     2000
                                                               £'000    £'000

Group profit for the year                                     12,111    8,220
Share of profit/(loss) in joint venture for the year         (1,097)      628
Profit for the year                                           11,014    8,848
Currency translation differences on foreign currency net         283    (342)
investments

Total recognised gains and losses in the year                 11,297    8,506



Reconciliation of movements in shareholders' funds
for the year ended 30 April 2001

                                                                2001     2000
                                                               £'000    £'000
Profit for the year                                           11,014    8,848
Other recognised gains and losses in the year                    283    (342)
Shares issued net of expenses                                 15,872  122,066
Dividends                                                    (2,237)  (2,099)
Net addition to shareholders' funds                           24,932  128,473
Opening shareholders' funds                                  177,656   49,183
Closing shareholders' funds                                  202,588  177,656


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