2000 Preliminary Results

Molins PLC
5 March 2001

2000 PRELIMINARY ANNOUNCEMENT

Molins PLC, the international specialist engineering company, announces its
results for the year ended 31 December 2000.

                                                                              
                                                        2000        1999      
                                                        Full year   Full year 
  Turnover                                              £100.6m     £110.6m   
  Operating profit (before goodwill and exceptional     £6.7m       £3.3m     
  items)                                                £5.7m       £3.4m     
  Profit before tax (after goodwill and exceptional     £4.9m       £4.2m     
  items)                                                22.4p       6.6p      
  Profit after tax                                      18.2p       11.8p     
  Earnings per share (before goodwill and exceptional   6.5p        6.5p      
  items)                                                                      
  Earnings per share (after goodwill and exceptional                          
  items)                                                                      
  Dividend per share                                                          

Highlights

* Earnings per share increased by 54%
* Filtrona Instruments & Automation acquired for £12.2m
* 35% of own equity purchased for cancellation
* Tobacco Machinery profitability substantially improved
* Strong operating cash flow

Peter Byrom, Chairman, commented:

'Overall the Group achieved a 54% increase in earnings per share. The
continued efficiency improvements in the Tobacco Machinery division and a
lowering of its cost base has resulted in a better trading performance. The
operating profit of the Packaging Machinery division, excluding acquisitions,
was unchanged, which was disappointing following a reasonably strong first
half of the year.'

'The Tobacco Machinery division will benefit from the full year effect of the
acquisition of FIA and is well placed to achieve a further improvement in
performance in 2001. Whilst the businesses in the Packaging Machinery
division have all made progress in their product development activities,
their main market places remain difficult.'

'With the improvements in the Tobacco Machinery division and notwithstanding
present concerns with Packaging Machinery, we expect to deliver further
growth. We are well placed to make incremental investments and are evaluating
opportunities.'

Enquiries:  Molins PLC  Tel: [phone] 

Peter Byrom, Chairman

David Cowen, Group Finance Director

Issued by:  Citigate Dewe Rogerson  Tel: [phone]

Margaret George

CHAIRMAN'S STATEMENT

Operating performance

The continued efficiency improvements in the Tobacco Machinery division in
the year and a lowering of its cost base has resulted in a better trading
performance. Excluding acquisitions, the division achieved an operating
profit of £2.8m, compared with £0.3m in 1999, on turnover 23% lower at
£52.7m. The fall in turnover reflected a continued reduction in demand for
original equipment as well as the anticipated decline in sales of spare
parts. The order level for spares is now showing some stability.
Our focus is on continued improvements in service for our tobacco machinery
customers and we are working in partnership with them to address the changing
market place. We have made progress through the year and we have seen
significant improvements in factory efficiency at Saunderton as well as in
our other manufacturing operations.

Performance in the Packaging Machinery division was disappointing following a
reasonably strong first half of the year. Langen suffered from a reduction in
demand for its products in the second half of 2000, and, with a softening in
Sandiacre's market place together with pricing pressures, the overall result
was a full year operating profit for the division, excluding acquisitions, of
£3.0m, unchanged against 1999, on sales of £43.1m (1999: £42.2m). In
particular, lower factory activity levels in the fourth quarter in Sandiacre,
and lower than anticipated profit margins on two contracts in Langen, reduced
profitability below that anticipated earlier in the year.

Good progress was made in all of the businesses in terms of new product
development, while many customers around the world continued to be serviced
with existing product ranges. However, the market for packaging machinery, in
North America in particular, gives some cause for concern, with enquiries
continuing at an encouraging level but order decisions being deferred. This
follows a number of mergers within our North American customer base and
concerns about economic prospects. Good progress has been made at ITCM with
further sales of tea bag machines and the start of other new machinery
developments. Langenpac made progress in the year in further establishing its
position in the European market place. Whilst the short-term outlook is not
as strong as it was this time last year, the division is well placed to
continue its development when market conditions allow.

Overall the Group generated profit before tax and exceptional items of £6.7m
(1999: £3.7m) and profit after tax and exceptional items of £4.9m (1999:
£4.2m). Earnings per share before goodwill and exceptional items amounted to
22.4p (1999: 6.6p). After goodwill and exceptional items earnings per share
were 18.2p (1999: 11.8p), an increase of 54%.

Acquisitions

We were pleased to announce the completion of the purchase of Filtrona
Instruments & Automation (FIA) in October 2000 for a total consideration of
£12.2m. FIA complements our existing businesses and the combination will
strengthen relationships with our major customers. FIA is integrating well
and made a contribution to Group profit in 2000 of £0.9m after goodwill, on
turnover of £4.8m. It entered 2001 with a strong order book, a little ahead
of our expectation on acquisition.

In line with our commitment to develop a lower cost manufacturing operation,
we also purchased a business in Plzen, Czech Republic in December 2000 for a
consideration of £0.7m. This business will contribute to the profitability of
Tobacco Machinery in 2001 and it adds to the product range offered by the
division.

Shareholders' funds and cash

During the year the Company purchased for cancellation a total of 11,255,025
of its own shares, representing 34.7% of the capital in issue at the
beginning of the year, at an aggregate cost of £14.2m. The average price at
which shares were purchased was 125p.

Equity shareholders' funds before purchases increased from £67.4m to £71.4m.

The purchases reduced year end equity shareholders' funds to £57.2m.
Net cash inflow from operating activities, excluding exceptional items, was
£13.9m (1999: £5.0m). After the cost of investments in FIA and the Czech
Republic and after the cost of the share purchases and dividends, net debt at
the end of 2000 was £8.7m, compared with net cash of £8.2m at the end of
1999.

Dividend

The directors have proposed a final dividend of 4.0p per share which, with
the interim dividend of 2.5p, gives a total dividend for the year of 6.5p
(1999: 6.5p) and is covered 2.8 times by earnings. The final dividend will be
paid on 16 May 2001 to ordinary shareholders registered on 17 April 2001.

Board changes

Mike Hodgkinson retired from the Board on 31 May 2000 after six years of
service. Mr Hodgkinson has made a major contribution to the Group over this
period and I thank him on behalf of the Board for his sound advice. John
Wilson was appointed on 1 August 2000 as a non-executive director. Mr Wilson
has a long career in engineering and was Chief Executive of Vickers Aerospace
and Marine Division from 1992 to 1998.

Outlook

In Tobacco Machinery, improvement in productivity and service levels
continues as the division progresses in its development as a more efficient
and responsive organisation. It has concentrated on enhancing its
relationships with customers and in ensuring that it is well placed to meet
their needs. The division will benefit from the full year effect of the
acquisition of FIA and will also, through the year, benefit from the purchase
of the Czech manufacturing facility. The division is well placed to achieve a
further improvement in performance in 2001.

The Packaging Machinery division has had a period of relatively poor order
intake and entered 2001 with a lower order book than twelve months ago.
Whilst the businesses in the division have all made progress in their product
development activities, their main market places remain difficult.
With the improvements in the Tobacco Machinery division and notwithstanding
present concerns with Packaging Machinery, we expect to deliver further
growth. We are well placed to make incremental investments and are evaluating
opportunities.

Peter Byrom
Chairman
5 March 2001

Group profit and loss account for the year ended 31 December

                                                                              
                   2000                                                       
                   ---------------------------------------------              
               No  Before                                     Exceptio  Total 
               te  exceptional                                nal       £m    
               s   items                                      items           
                   £m                                         £m              
                                                              Note 6          
  Turnover         95.8                                       -         95.8  
  Existing        
  businesses      
  Acquisitions      4.8                                       -          4.8   
                     
  Total      3&4           
  turnover         
  Cost of                                                     -         ---   
  sales                                                
                                                                        
  Gross           100.6                                                 100.6
  profit                                                                  
  Net                                                                  
  operating      (73.1)                                                (73.1)   
  expenses                                                                    
  (includes                                                (1.0)                
  £0.1m                                                                       
  (1999:                                                                      
  £nil)                                                                       
  amortisation                                                                 
  of                                                                        
  goodwill)      
                 27.5                                                   27.5
                (20.9)                                                 (21.9)   
                                                          
                                                                              
  Operating          
  profit             
  Existing        5.8                                        (1.0)     4.8
  businesses        
  Acquisitions    0.8                                         -        0.8      
                                         
                                                                            
                                                              -         -     
  Total    3& 5   6.6                                         (1.0)     5.6     
  operating                                   
  profit                                                      --------  ------
                                               
  Loss on                                                                     
  sale/closure                                                                
  of                                                                        
  businesses                                                                  
  Net                 -                                           -         -   
  interest                                                                    
  receivable                                                                  
                  0.1                                             -       0.1
  
  Profit on       6.7                                          (1.0)      5.7   
  ordinary                                                                    
  activities       
  before        -----------                                --------  ------
  taxation        
                                                                              
  Taxation                                                                      
  (charge)/credit (0.8)                                         -        (0.8)  
  Profit for       5.9                                        (1.0)       4.9   
  the                                                                         
  financial        
  year          ------------                               --------  ------
                    
  Dividends       (1.3)                                          -       (1.3)  
  (including                                                                  
  non-equity)                                                                 
                                                                              
  Retained         4.6                                        (1.0)     3.6   
  profit for       ------------                               --------  ------
  the year                                                    ----      ----  
  Basic            22.0p                                      (3.8)p    18.2p 
  earnings                                                                    
  per               
  ordinary                                                                    
  share             

  Basic            22.4p                                       (3.8p)   18.6p   
  earnings                                               
  per                                                     
  ordinary                                              
  share                                                                    
  before                                                                 
  goodwill                                                              ------
  
  Diluted          21.7p                                       (3.8p)    17.9p  
  earnings                                                                    
  per                                                                         
  ordinary                                                                    
  share                                                                       
                                                                              
  Interim                                                                 2.5p  
  dividend                                                                    
  paid                                                                        
  October                                                                     
  Proposed                                                                4.0p  
  final                                                                       
  dividend                                                                    
                                                                              
  Total                                                                   6.5p  
  dividend                                                                    
                                                                              

                                                                              
                                            1999                                
      
                          Notes    Before          Exceptional     Total      
                                   exceptional     items           £m         
                                   items           £m                         
                                   £m                                         
  Turnover                3 & 4    110.6           -               110.6      
  Existing businesses              -               -               -          
  Acquisitions                     ----------      ----------      ---------  
                                   110.6           -               110.6      
  Total turnover                   (85.1)          -               (85.1)     
  Cost of sales                    ----------      ----------      ---------  
                                   25.5            -               25.5       
  Gross profit                     (22.2)          -               (22.2)     
  Net operating expenses                                                      
  (includes £0.1m                  -----------     ------------    ---------  
  (1999: £nil)                                                                
  amortisation of                                                             
  goodwill)                                                                   
  Operating profit        3 & 5    3.3             -               3.3        
  Existing businesses              -               -               -          
  Acquisitions                     -----------     -----------     ---------  
                                   3.3             -               3.3        
  Total operating profit                                                      
                                   -               (0.3)           (0.3)      
  Loss on sale/closure                                                        
  of businesses                    0.4             -               0.4        
  Net interest                     ------------    -----------     ---------  
  receivable                                                                  
  Profit on ordinary               3.7             (0.3)           3.4        
  activities before                                                           
  taxation                         (1.3)           2.1             0.8        
                                   -----------     -----------     --------   
  Taxation                                                                    
  (charge)/credit                                                             
  Profit for the                   2.4             1.8             4.2        
  financial year                                                              
                                   (2.2)           -               (2.2)      
  Dividends (including             ------------    -----------     ---------  
  non-equity)                                                                 
  Retained profit for              0.2             1.8             2.0        
  the year                         ------------    -----------     ---------  
  Basic earnings per               6.6p            5.2p            11.8p      
  ordinary share Basic                                                        
  earnings per ordinary            6.6p            5.2p            11.8p      
  share before goodwill                                                       
  Diluted earnings per             6.6p            5.2p            11.8p      
  ordinary share                                                              
                                                                   2.5p       
  Interim dividend paid                                            4.0p       
  October                                                          --------   
  Proposed final                                                   6.5p       
  dividend                                                         --------   
                                                                              
  Total dividend                                                              

 
The calculations of earnings per share are based on the following weighted
average number of shares :  

Basic - 26,307,293 (1999: 34,846,109). Diluted - 26,887,080 (1999: 34,846,109). 

Group balance sheet as at 31 December

                                                                              
                                                     Note   2000      1999    
                                                            £m        £m      
  Fixed assets                                              8.7       -       
  Intangible assets - goodwill                              22.2      26.9    
  Tangible assets                                           4.1       2.5     
  Investments                                                                 
                                                            35.0      29.4    
  Current assets                                     5      26.2      30.8    
  Stocks                                                    23.6      28.4    
  Debtors - due within one year                             19.2      16.4    
  Debtors - due after more than one year                    1.9       9.8     
  Cash and short-term bank deposits                                           
                                                            70.9      85.4    
  Creditors - amounts falling due within one year           (2.0)     (1.2)   
  Borrowings                                                (32.4)    (37.6)  
  Other creditors                                           (0.8)     (1.3)   
  Proposed dividend                                                           
                                                            (35.2)    (40.1)  
  Net current assets                                        35.7      45.3    
  Total assets less current liabilities                     70.7      74.7    
  Creditors - amounts falling due after more than           (8.6)     (0.4)   
  one year                                                  -         (0.2)   
  Borrowings                                                                  
  Other creditors                                           (8.6)     (0.6)   
  Provisions for liabilities and charges                    (4.0)     (5.8)   
                                                                              
  Net assets                                                58.1      68.3    
  Capital and reserves                                      6.2       9.0     
  Called up share capital                                   25.6      25.6    
  Share premium account                                     5.7       7.3     
  Revaluation reserve                                       3.6       0.8     
  Capital redemption reserve                                17.0      25.6    
  Profit and loss account                                                     
                                                            58.1      68.3    
  Shareholders' funds (including non-equity                                   
  interests)                                                                  
                                                                              
  Net (debt) / funds                                        (8.7)     8.2     
  Net assets per ordinary share                             270p      208p    

Group cash flow statement for the year ended 31 December

                                                                              
                                                      Notes   2000     1999   
                                                              £m       £m     
  Net cash inflow/(outflow) from operating            7       13.3     (0.5)  
  activities                                                                  
                                                              0.1      0.4    
  Returns on investments and servicing of finance                             
  Taxation                                                    0.8      0.3    
  Capital expenditure (net)                                   (0.6)    (1.4)  
  Acquisitions and disposals                                  (13.0)   3.8    
  Equity dividends paid                                       (1.8)    (1.5)  
  Net cash (outflow)/inflow before management of      8       (1.2)    1.1    
  liquid resources and financing                      9                       
                                                              0.9      3.7    
  Management of liquid resources                              (7.4)    (4.3)  
  Financing                                                                   
  (Decrease)/increase in cash in the year                     (7.7)    0.5    

Reconciliation of net cash flow to movement in net funds/(debt) for the year
ended 31 December

                                                                              
                                                             2000      1999   
                                                             £m        £m     
  (Decrease)/increase in cash in the year                    (7.7)     0.5    
                                                                              
  Cash inflow from movement in liquid resources              (0.9)     (3.7)  
  Cash (inflow)/outflow from (increase)/decrease in debt                      
  and lease financing                                        (8.3)     0.1    
  Change in net funds resulting from cash flows              (16.9)    (3.1)  
  Translation movements                                      -         0.4    
  Movement in net funds in the year                          (16.9)    (2.7)  
  Net funds at 1 January                                     8.2       10.9   
  Net (debt) / funds at 31 December                          (8.7)     8.2    
Statement of total group recognised gains and losses for the year ended 31
December

                                                                         
                                                           2000    1999  
                                                           £m      £m    
      Profit for the year                                  4.9     4.2   
      Currency translation movements arising on foreign                  
      currency net investments                             0.4     (0.3) 
      Total recognised gains for the year                  5.3     3.9   

Notes to preliminary announcement

1 The Group's accounts have been prepared in accordance with applicable
accounting and financial reporting standards.

2 The financial information set out above does not constitute the Group's
statutory accounts for the years ended 31 December 2000 and 1999 but is
extracted therefrom. The Group's statutory accounts for 2000 will be sent to
shareholders by 20 March 2001 with notice of the Annual General Meeting. The
Group's statutory accounts for 2000 and 1999 each received an unqualified
auditors' report.

3 Segmental analysis for the year ended 31 December

                                                                              
                    Turnover          Operating profit          Net assets      
                      2000     1999   2000        1999       2000     1999      
                      £m        £m      £m        £m         £m        £m
  By                                                                          
  activity:                                                                     
 
 
Continuing
 operations 

Tobacco Machinery
- existing            52.7    68.4     2.8       0.3         42.4     44.4
-acquistions           4.0       -     0.6         -          3.4        -

Tobacco Machinery     56.7    68.4     3.4       0.3         45.8     44.4

Packaging Machinery
-existing businessess  43.1   42.2     3.0       3.0         20.2     15.7
-acquisitions           0.8      -     0.2         -          0.8        -

Packaging Machinery    43.9   42.2     3.2       3.0         21.0     15.7

                      100.6  110.6     6.6       3.3         66.8     60.1

Exceptional items                     (1.0)        -

Operating profit                       5.6       3.3

Net(debt)/cash                                              (8.7)      8.2

Net assets                                                  58.1      68.3  
  
4 Turnover by geographical destination of goods for the year ended 31 December

                                                               
                                     2000    %     1999    %   
                                     £m            £m          
                United Kingdom       12.8    13    18.6    17  
                Continental Europe   18.6    18    18.1    16  
                North America        37.1    37    41.2    37  
                Asia                 16.1    16    17.4    16  
                Rest of world        16.0    16    15.3    14  
                                     100.6   100   110.6   100 

5 Operating profit includes a net pension credit of £2.7m (1999: £1.8m).
Debtors due after more than one year includes pension fund prepayment of
£19.2m at 31 December 2000 (1999: £16.3m)


6 The exceptional item of £1.0m relates to the settlement of a long running
claim for unpaid royalty fees, the cessation of a partially customer funded
development contract at Langen Packaging Inc and the profit on sale of the
Peterborough property.

7 Reconciliation of operating profit to net cash flow from operating
activities

                                                                             
                                                             2000     1999   
                                                             £m       £m     
    Operating profit                                         5.6      3.3    
                                                                             
    Amortisation of goodwill                                 0.1      -      
                                                                             
    Depreciation                                             3.2      3.3    
                                                                             
    Other movements                                          -        (0.4)  
                                                                             
    Movements in exceptional items :                         1.0      -      
    - charges in the year                                    2.8      -      
    - cash movements on charges in the year                                  
    - cash movements on restructuring and rationalisation    (3.4)    (5.5)  
    provisions                                                               
                                                             8.6      6.3    
    Working capital movements                                7.5      2.9    
    stocks                                                   (2.9)    (2.2)  
    debtors                                                  (9.2)    (8.2)  
    pension fund prepayment                                                  
    creditors and other provisions                                           
                                                                             
    Net cash inflow/(outflow) from operating activities      13.3     (0.5)  
    Cash flows from exceptional items excluding tax effect   (0.6)    (5.5)  
    Other cash flows                                         13.9     5.0    
    Net cash inflow/(outflow) from operating activities      13.3     (0.5)  

8 Management of liquid resources
Management of liquid resources includes movements in cash deposits which do
not fall within the definition of cash for the purposes of FRS 1 (revised).

9 Financing

                                                                              
                                                             2000      1999   
                                                             £m        £m     
  Purchase of own shares for cancellation                    (14.2)    (3.8)  
  Purchase of own shares for Long Term Incentive Plan        (1.5)     (0.4)  
  Debt due within one year : decrease in borrowings          -         (0.1)  
  Debt due after more than one year: increase in borrowings  8.3       -      
                                                             (7.4)     (4.3)