Interim Results

Molins PLC
3 September 2001


                             2001 INTERIM RESULTS

Molins PLC, the international specialist engineering company, announces its
results for the six months ended 30 June 2001.
                                                  6 months  6 months  12 months
                                                      to 30     to 30
                                                      June      June  to 31 Dec
                                                      2001      2000
                                                                          2000

Turnover                                            £48.3m    £51.7m   £100.6m
Operating profit (before goodwill and exceptional    £3.9m     £3.2m     £6.7m
items)                                               
Profit before tax (after goodwill and exceptional    £3.3m     £2.3m     £5.7m
items)                                            
Profit after tax                                     £2.7m     £1.8m     £4.9m
Net (debt)/cash                                   £(11.0)m     £3.8m   £(8.7)m  
Earnings per share (before goodwill and              15.2p      9.5p     22.4p  
exceptional items)
Earnings per share (after goodwill and               14.2p      6.1p     18.2p
exceptional items)
Dividend per share                                    2.5p      2.5p      6.5p


Highlights

  * Growth in underlying earnings per share from 9.5p to 15.2p
  * Tobacco Machinery moves from breakeven to operating profit of £4.1m
  * Acquisitions contribute to improved performance
  * Operating cash flow of £3.7m
  * 6% of own equity purchased for £2.0m

Peter Byrom, Chairman, commented:

'The Tobacco Machinery division achieved growth in both sales and profits,
with the effects of the recent years' restructuring and acquisitions showing
in improved operational efficiency. The Packaging Machinery division has faced
very difficult market conditions throughout the period and made a loss,
following a sharp fall in sales.

The Tobacco Machinery division is delivering improvements in performance
following a significant change in its business. We are a committed supplier to
our customers and we seek continued improvement in operational performance and
service delivery. We expect the trading of this division in the second half of
2001 to show a satisfactory improvement over the comparable period in 2000.
The outlook for Packaging Machinery presently gives little encouragement, with
no sign of an upturn in market conditions. The cost base of the division has
been reduced to match activity levels more closely and to withstand the
current low levels of demand. We remain well placed to make incremental
investments and continue to evaluate opportunities as they arise.'

Enquiries:

Molins PLC

Peter Byrom, Chairman

David Cowen, Group Finance Director

Tel: [phone]



Issued by:

Citigate Dewe Rogerson

Margaret George

Tel: [phone]



Chairman's Statement

In the first six months of the current year the Group achieved growth in
operating profit from £3.2m to £3.9m, an increase of 22%. Underlying earnings
per share increased from 9.5p to 15.2p, an increase of 60%. There was a marked
contrast in the performance of the Group's two divisions. The profitability of
the ongoing Tobacco Machinery businesses improved while the division also
benefited from the acquisitions made in the second half of last year. The
Packaging Machinery division faced very difficult market conditions throughout
the period and made a loss, following a sharp fall in sales.

Tobacco Machinery

The benefits of the action taken over the last two years to improve
operational efficiencies and customer service resulted in an improved
performance in the division. Sales increased to £32.3m compared with £28.7m
last year. The division made an operating profit of £4.1m (before the pension
credit) against a breakeven position last year. The division continues to
focus on improving operating efficiencies and customer service. The stability
in the level of sales compared with last year has enabled the division to
maintain employee numbers similar to those at the end of 2000.

We have seen the benefits in this period of the two acquisitions made towards
the end of 2000, with Cerulean (formerly named Filtrona Instruments and
Automation) and our Czech Republic factory, Molins sro, both contributing to
the improved performance of the division. Cerulean has integrated well. The
acquisition has strengthened relationships with customers and helped Molins to
provide a fuller service to the global tobacco machinery market. Molins sro
manufactured quality spare parts for the rest of the organisation and has also
contributed to the overall profitability of the division. Whilst demand for
original equipment remains low, sales have been at a higher level than last
year. Demand for spare parts has remained fairly constant over the first six
months of 2001 and this has enabled the division to plan its production
activities more efficiently. In co-operation with customers we have embarked
upon significant research and development programmes, with particular focus on
performance enhancements of original equipment and rebuilt machinery.

Packaging Machinery

The division is facing unfavourable market conditions and sales for the six
months were £16.0m compared with £23.0m in the comparable period last year.
The downturn in North America in the second half of 2000 continued and was
followed by similar pressures in both the UK and Continental Europe. Order
intake in the period was disappointing overall and we have been unable to
build on the relatively low order backlog of last year. ITCM, however,
continues to make progress and we are winning new development contracts as
well as repeat machine orders.



The Packaging Machinery division returned a loss of £1.8m (before the pension
credit) compared with a profit of £1.8m in the comparable period in 2000,
which benefited significantly from the delivery of a particularly large
contract. Employee numbers have been reduced and measures taken to improve
operating efficiencies, to reflect the lower activity levels of the
businesses. Enquiry levels within all of the businesses are high, but there is
a low conversion by customers of such enquiries into orders.

Acquisition

Notwithstanding the present market outlook in Packaging Machinery, in April
2001 we took the opportunity to acquire certain assets for £1.1m, including
intellectual property rights, of Rose Forgrove Ltd, a company in receivership.
Rose Forgrove is a world leader in the manufacture of flow-wrapping machinery.
Flow-wrapping machinery is often specified on the same production lines as
cartoning machinery, as supplied by Langen and Langenpac. The Rose Forgrove
operation has been moved into the Sandiacre factory in Nottingham and we have
been encouraged by the level of orders placed with this business. Whilst we do
not expect it to contribute to profitability in the second half of 2001 we
believe it will add to the performance of the division as we move into 2002.

Pensions

Operating profit includes a net pension credit of £1.4m (2000: £1.4m, 2000
full year: £2.7m). In line with common practice, the Company is continuing to
account for pensions under SSAP 24 Accounting for Pension Costs combined with
the transitional rules of FRS 17 Retirement Benefits. FRS 17 must be adopted
by the Company in full by the 2003 financial year. If FRS 17 were to be
adopted by the Company for the 2001 financial year, the estimated net credit
to the profit and loss account, which for future years would be sensitive to
movements in the market value of the pension schemes assets (£355m at 30 June
2001), would have been broadly similar. Under FRS 17, assuming a maintained £
1.4m net credit, the approximate allocation would have been a £1.4m charge to
operating profit and a £2.8m credit to other finance income within net
interest receivable.

Operating results

The Tobacco Machinery division moved from breakeven to £4.1m profit, after a
goodwill charge of £0.2m and the Packaging Machinery division fell from a £
1.8m profit to a loss of £1.8m. The divisional operating results are stated
before the net pension credit of £1.4m. Group profit before tax was £3.3m,
compared with £2.3m (after an exceptional charge of £1.0m) in the same period
in 2000. The taxation charge has been based on an estimate of the full year
effective rate of 18%, compared with 12% in the full year 2000. We expect that
the taxation charge for 2002 will move towards a more normal rate of 30% as
the UK tax losses are extinguished. Profit after tax was £2.7m compared with £
1.8m in 2000. Earnings per share of 15.2p before goodwill amortisation
compares with 9.5p the previous year. Earnings per share after goodwill and
exceptional items were 14.2p, compared with 6.1p last year.



Shareholders' funds and cash

In the first six months of the year the Company purchased for cancellation a
total of 1.35m shares, representing 6.4% of the issued share capital
outstanding at the beginning of the year. The aggregate cost, including fees,
was £2.0m and the average price at which the shares were purchased was 147.5p.

Equity shareholders' funds were £57.8m, compared with £62.8m at 30 June 2000
and £57.2m at 31 December 2000.

Net debt amounted to £11.0m, compared with £8.7m at 31 December 2000.
Operating cash flow in the period was £3.7m, with £2.0m disbursed in respect
of share purchases and £1.1m in respect of the acquisition of Rose Forgrove.
Capital expenditure of £1.4m included £0.4m in respect of the purchase of
freehold property by Molins sro in Plzen, Czech Republic. Dividends of £0.8m
were paid during the first half of the year.

Dividend

The directors have declared an interim dividend of 2.5p per ordinary share
(2000: 2.5p). The interim dividend will be paid on 25 October 2001 to
shareholders on the register on 21 September 2001.

Outlook

The Tobacco Machinery division is delivering improvements in performance
following a significant change in its business. We are a committed supplier to
our customers and we seek continued improvement in operational performance and
service delivery. We expect the trading of this division in the second half of
2001 to show a satisfactory improvement over the comparable period in 2000.
The outlook for Packaging Machinery presently gives little encouragement, with
no sign of an upturn in market conditions. The cost base of the division has
been reduced to match activity levels more closely and to withstand the
current low levels of demand. We remain well placed to make incremental
investments and continue to evaluate opportunities as they arise.



Peter Byrom

Chairman

3 September 2001



Group Profit and Loss Account

                                        6 months to 30 June 2000              

                              6 months          Before    Exceptional         
                     Notes       to 30     exceptional          items    Total
                                  June           items             £m       £m  
                                  2001              £m         Note 2           
                                    £m                                          
  Turnover               
  Continuing             1        48.3            51.7              -     51.7  
  operations                                                                  

  Operating profit                 
  Continuing                       3.7             3.2           (1.0)     2.2  
  operations                     

  Net interest                    (0.4)            0.1              -      0.1  
  (payable)/                                                                  
  receivable                                                                  

  Profit on                        3.3             3.3           (1.0)     2.3  
  ordinary                       
  activities                                                                  
  before taxation                                                             
                                                                              
  Taxation                        (0.6)           (0.5)             -     (0.5) 
                                           
  Profit for the                   2.7             2.8           (1.0)     1.8
  period                                                                      
                                 
  Dividends                       (0.5)           (0.5)             -     (0.5) 
  (including                                                                  
  non-equity)                                                                 

  Retained profit                  2.2             2.3           (1.0)     1.3
  for the period                                                              

  Earnings per            6      14.2p            9.5p         (3.4)p     6.1p
  ordinary share                                                              
                        
  Earnings per                   15.2p            9.5p         (3.4)p     6.1p  
  ordinary share                 
  before goodwill                                                             
                                 
  Diluted                        13.3p            9.5p         (3.4)p     6.1p  
  earnings per                                                                
  ordinary share                                                              
                                                                              
  Dividend per            8       2.5p            2.5p             -      2.5p  
  ordinary share                                                              
                                                                              
                                              12 months to 31 December 2000     
                             
                                                Before    Exceptional         
                                           exceptional          items    Total
                                                 items             £m       £m  
                             Notes                  £m         Note 2           
  Turnover                                       
  Continuing operations        1                 100.6              -    100.6  
                          
  Operating profit                                 
  Continuing operations                            6.6           (1.0)     5.6  
                                                 
  Net interest (payable)/                          0.1              -      0.1  
  receivable                                                                  

  Profit on ordinary                               6.7           (1.0)     5.7  
  activities before taxation                     
                                                                              
  Taxation                                        (0.8)             -     (0.8) 
                           
  Profit for the period                            5.9           (1.0)     4.9
                                                                              
  Dividends (including                            (1.3)             -     (1.3)
  non-equity)                                                                 

  Retained profit for the                          4.6           (1.0)     3.6
  period                                                                      

  Earnings per ordinary         6                22.0p         (3.8)p    18.2p
  share                                                                       
                                                 
  Earnings per ordinary                          22.4p         (3.8)p    18.6p  
  share before goodwill                          
                                                                              
  Diluted earnings per                           21.7p         (3.8)p    17.9p 
  ordinary share                                                              
                                                                              
  Dividend per ordinary         8                 6.5p             -      6.5p  
  share                                                                       
                                                


Group Balance Sheet
                                                     30 June  30 June  31 Dec
                                               Note                      2000
                                                       2001     2000       £m
                                                         £m       £m
Fixed assets
Intangible assets - goodwill                            8.6        -      8.7
Tangible assets                                        22.3     23.0     22.2
Investments                                             4.0      3.5      4.1


                                                       34.9     26.5     35.0


Current assets
Stocks                                                 30.5     26.6     26.2
Debtors - due within one year                          20.5     27.5     23.6
Debtors - due after more than one year           3     20.9     18.0     19.2
Cash and short-term bank deposits                       1.2      5.5      1.9


                                                       73.1     77.6     70.9
Creditors - amounts falling due within one
year                                                   
Borrowings                                             (2.1)    (1.4)    (2.0)
Other creditors                                       (32.6)   (34.2)   (32.4) 
Proposed dividend                                      (0.5)    (0.6)    (0.8)

                                                      (35.2)   (36.2)   (35.2)


Net current assets                                     37.9     41.4     35.7


Total assets less current liabilities                  72.8     67.9     70.7

Creditors - amounts falling due after more
than one year                                         
Borrowings                                            (10.1)    (0.3)    (8.6)  
Other creditors                                           -     (0.1)       -

                                                      (10.1)    (0.4)    (8.6)

Provisions for liabilities and charges                 (4.0)    (3.8)    (4.0)

Net assets                                             58.7     63.7     58.1
                                                       
Capital and reserves
Called up share capital                                 5.9      7.6      6.2
Share premium account                                  25.6     25.6     25.6
Revaluation reserve                                     5.8      5.7      5.7
Capital redemption reserve                              3.9      2.2      3.6
Profit and loss account                                17.5     22.6     17.0

Shareholders' funds (including non-equity
interests)                                             58.7     63.7     58.1


Net (debt)/funds                                      (11.0)     3.8     (8.7)



Group Cash Flow Statement
                                                  6 months  6 months  12 months
                                                      to 30     to 30 to 31 Dec
                                                     June      June
                                                     2001      2000      2000
                                                       £m        £m        £m

Net cash inflow from operating activities             3.7       1.5      13.3

Returns on investments and servicing of
finance                                              
Net interest (paid)/received                         (0.4)      0.1       0.1

Taxation                                             (0.1)      0.2       0.8

Capital expenditure (net of sale proceeds)           (1.4)     (0.5)     (0.6)

Acquisitions and disposals
Purchase of businesses                               (1.1)        -     (12.9)
Sale of businesses                                      -       0.1       0.1
Investment in joint venture                             -      (0.2)     (0.2)

Net cash outflow from acquisitions and
disposals                                            (1.1)     (0.1)    (13.0)
Equity dividends paid                                (0.8)     (1.2)     (1.8)


Net cash outflow before management of
  liquid resources and financing                     (0.1)        -      (1.2)

Management of liquid resources                        0.1       1.0       0.9

Financing
Purchase of own shares for cancellation              (2.0)     (3.2)    (14.2)
Purchase of own shares for Long Term                    -      (1.2)     (1.5)
Incentive Plan                                        
Debt due after more than one year: increase           1.3         -       8.3
in borrowings
                                                     
Net cash outflow from financing                      (0.7)     (4.4)     (7.4)

Decrease in cash in the period                       (0.7)     (3.4)     (7.7)


Closing net (debt)/funds                            (11.0)      3.8      (8.7)
                                                    

Reconciliation of Operating Profit to Net Cash Flow from Operating Activities

                                                   6 months  6 months        12
                                                                       months
                                                       to 30     to 30    to 31
                                                      June      June      Dec
                                                      2001      2000     2000
                                                        £m        £m       £m
Operating profit                                       3.7       2.2      5.6

Amortisation of goodwill                               0.2         -      0.1
Depreciation                                           1.4       1.6      3.2
Other movements                                        0.2      (0.4)       -
Movements in exceptional items:
   - charges in the period                               -       1.0      1.0
   - cash movements on charges                        (0.1)     (0.4)     2.8
   - cash movements on restructuring and                 -      (3.4)    (3.4)
rationalisation provisions

Working capital movements:                            
   - stocks                                           (2.8)      4.4      8.6 
   - debtors                                           3.3       4.8      7.5
   - pension fund prepayment                          (1.4)     (1.6)    (2.9)
   - creditors and other provisions                   (0.8)     (6.7)    (9.2)

Net cash inflow from operating activities              3.7       1.5     13.3


Cash flows from exceptional items excluding tax       (0.1)     (3.8)    (0.6)
effect                                                 
Other cash flows                                       3.8       5.3     13.9

Net cash inflow from operating activities              3.7       1.5     13.3





Reconciliation of Net Cash Flow to Movement in Net Funds/(Debt)

                                               6 months   6 months   12 months
                                               to 30 June to 30 June
                                                                     to 31 Dec
                                                   2001       2000
                                                     £m         £m       2000
                                                                           £m
Decrease in cash in the period                     (0.7)      (3.4)      (7.7)

Cash inflow from decrease in liquid resources      (0.1)      (1.0)      (0.9)
Cash inflow from increase in debt and lease        (1.3)          -      (8.3)
financing

Change in net (debt)/funds resulting from cash     (2.1)      (4.4)     (16.9)
flows                                              
Translation movements                              (0.2)         -          -

Movement in net (debt)/funds in the period         (2.3)      (4.4)     (16.9)
Opening net (debt)/funds                           (8.7)       8.2        8.2

Closing net (debt)/funds                          (11.0)       3.8       (8.7)




Reconciliation of Movements in Shareholders' Funds
                                                     6 months 6 months       12
                                                                       months
                                                        to 30    to 30    to 31
                                                       June     June      Dec
                                                       2001     2000     2000
                                                         £m       £m       £m

Profit for the period                                   2.7      1.8      4.9
Dividends                                              (0.5)    (0.5)    (1.3)

Retained profit for the period                          2.2      1.3      3.6
Currency translation movements arising on foreign       
currency net investments                                0.4      0.6      0.4
Purchase of own shares for cancellation                (2.0)    (6.5)   (14.2) 
                                                       
Net increase/(decrease) in shareholders' funds          0.6     (4.6)   (10.2)

Opening shareholders' funds                            58.1     68.3     68.3 

Closing shareholders' funds                            58.7     63.7     58.1





Notes

 1. Segmental analysis

                   6 months  6 months  12 months 6 months  6 months  12 months
                      to 30     to 30  to 31 Dec    to 30     to 30  to 31 Dec
                      June      June                June      June
                      2001      2000      2000      2001      2000      2000
                        £m        £m        £m        £m        £m        £m
 By activity:

 Continuing
 operations
                      
 Tobacco Machinery    32.3      28.7      56.7       4.1         -       1.5
 Packaging            16.0      23.0      43.9      (1.8)      1.8       2.4
 Machinery
                      48.3      51.7     100.6       2.3       1.8       3.9

 Net pension                                         1.4       1.4       2.7
 credit


 Operating profit                                    3.7       3.2       6.6
 Exceptional items                                     -      (1.0)     (1.0)


                      48.3      51.7     100.6       3.7       2.2       5.6





2 The exceptional item of £1.0m in 2000 related to the settlement of a long
running claim for unpaid royalty fees, the cessation of a partially funded
customer development contract at Langen Packaging Inc and the profit on sale
of a property in Peterborough.

3 Debtors due after more than one year includes a pension fund prepayment of £
20.8m (31 December 2000: £19.2m).

4 The results for the full year 2000 have been extracted from the Group's full
accounts for that year which included an unqualified audit report and have
been filed with the Registrar of Companies.

5 The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2000 statutory accounts.

6 Earnings per ordinary share are based upon the profit after taxation less
the preference dividend and on a weighted average of 19,032,000 shares in
issue during the period (30 June 2000: 29,337,106).

7 The preference dividend due on 30 June 2001 amounted to £27,000 (30 June
2000: £27,000).

8 The cost of the interim dividend of 2.5p per ordinary share for the six
months to 30 June 2001 will amount to £0.5m.

9 The average US dollar exchange rate for the period to 30 June 2001 was
US$1.44 (2000: US$1.57) and the rate at 30 June 2001 was US$1.41 (2000:
US$1.51). The rate at 31 December 2000 was US$1.49.