Final Results

Severfield-Rowen PLC
26 March 2001


26 March 2001


Severfield-Rowen Plc


2000 Full Year Results


Severfield-Rowen plc, the structural steel group, announces its full year
results to 31 December 2000.


Overview


*         Turnover up 15% to £128.9m (1999: £112.0m)

*         Pre-tax profit of core business increased to £10.6m (1999: £9.8m)

*         Group pre-tax profit, after exceptional items, of £10.3m (1999: £
          5.9m)

*         Adjusted earnings per share increased by 15.8% to 35.69p (1999:
          30.82p)

*         Total dividend increased by 16.7% to 14.0p per share (1999: 12.0p)

*         Nil gearing at year end with cash balance of £5.6m (1999: £4.9m)
          after capital expenditure during year of £5.6m (1999: £2.8m)

*         Record order book in excess of £75m

*         Fifth production line contributing to profit and the sixth line for
          plate production being built for commissioning in summer 2001

*         Group in strongest ever financial position supplemented by proceeds
          of £14m sale and leaseback of Dalton Facility through disposal of     
          Dalton Airfield Properties Ltd completed in March 2001

*         Market leadership maintained, industry reputation enhanced

*         Focus on carefully planned and structured organic and acquisitive
          growth



Commenting on the results, Peter Levine, Chairman, said:



'Severfield-Rowen has produced a remarkable result in the face of some very
challenging market conditions.  We are now in the strongest position we have
ever been in, both financially and in terms of market position.  We have
invested for the future by building a fifth production line, which is now
contributing to profit, and a sixth line for plate production which will be
commissioned in the summer.  The sale and leaseback of the Dalton facility
through the disposal of our former subsidiary Dalton Airfield Properties Ltd
for £14m has released significant funds which we will deploy strategically,
with a clear focus on enhancing shareholder value.  The year has started well
and we look forward to another good performance, relative to our industry,
from the Group in 2001.'



Enquiries


Severfield-Rowen plc                     020 7269 7291 - 26 March 2001
Peter Levine, Chairman                   Thereafter:  01132 469 993
Peter Davison, Finance Director          Thereafter:  01845 577 896

Financial Dynamics
Richard Mountain                         020 7269 7291




CHAIRMAN'S STATEMENT



Introduction



Despite a challenging year, the Group produced another excellent result in
2000 which, when put into an industry context, looks even better.  It reflects
the Directors' commitment to deliver sustained value to its shareholders,
while focusing on forward-looking strategic planning.



Overview



The Group generated operating profits of £10.6m (1999: £7.2m), on turnover of
£128.9m (1999: £112.0m), after taking into account the closing losses of £0.3m
resulting from the sale of the Manabo business in March 2000.  Profit before
tax was £10.3m.  Adjusted earnings per share increased to 35.69p (1999:
30.82p).



Severfield-Rowen ended the year with net assets of £33.1m (1999: £30.2m) nil
gearing and £5.6m in cash, after increasing capital expenditure in 2000 to £
5.6m.



The effective tax charge for the year was 37.7% compared to 30.8% in the
previous year.



The year saw the Group's market leadership position consolidated and its
reputation enhanced.  The 'brand' image referred to in my last annual
statement has become acknowledged by an ever-increasing circle of customers
and professionals.



While the industry as a whole endured a competitive year, careful management
and planning allowed operating margins to increase from 8.09% in 1999 to
8.19%.  Our production efficiency remains unsurpassed within the industry.
During 2000 Production Line 5 came on stream and contributed profitably to the
Group in line with our expectations.  The last quarter saw the Dalton site
consistently producing in excess of 1,400 tonnes of fabricated steel a week,
levels not before seen in Europe from a single fabrication facility.



In the last quarter of 2000 building commenced at Dalton on Production Line 6,
a plate welding line, at a total budgeted cost of £5m.  This facility gives
the Group greater flexibility in the delivery to our customers of cost
effective and innovative structural steelwork solutions reflecting their
varying requirements.  This line is anticipated to begin operation during the
summer of 2001 and to make a positive contribution to the results for the
current year.



The Group's two major subsidiaries remain Severfield-Reeve Structures based at
Dalton, North Yorkshire and Rowen Structures based near Nottingham.



Sale of Dalton Airfield Properties Limited



Shareholders were sent a circular on 21 February 2001 detailing the sale and
leaseback of our Dalton Facility, effected by the sale of the subsidiary,
Dalton Airfield Properties Limited.  I am pleased to report that at the
extraordinary meeting of members, held on 9 March 2001 to consider the
transaction, the resolution relating to the proposals was passed.
Accordingly, after the meeting, the sale of the entire share capital of Dalton
Airfield Properties Limited was completed and the full cash consideration of £
14 m was received by the Group.



This significant inflow of cash, combined with the strong financial position
of the Group, is an important platform for the future success and strategic
planning of Severfield-Rowen.  The Board is committed to make these sizeable
financial resources work hard for the benefit of the Group's core business
while retaining the benefits that significant liquidity gives to
Severfield-Rowen.



Dividend



Reflecting both the past successful year and the Directors' confidence in the
future, the Board has decided to increase the total dividend to 14p per share
representing an increase of 16.7% over the previous year.  Dividend cover
remains at a comfortable level of 2.55 times adjusted earnings.  The final
dividend is payable on 13 June 2001, to shareholders on the register on  11
May 2001.



Manabo



I reported in my statement for the year 1999 that the business of this
non-core subsidiary was disposed of in March 2000.  The impact of this
disposal in 2000 is a pre-tax loss of £308,000 reflecting its trading for the
first two months of 2000 until its sale and the associated closure costs.



Share Buy Back



During 2000 the company purchased for cancellation a total of 248,510 shares
at a cost of £487,000.  As highlighted in the past, the Board may wish to
continue Severfield-Rowen's share buy-back programme in the future.  However
it is intended to operate this programme selectively, only when circumstances
and market conditions are appropriate and when such purchases will enhance
shareholder value.  Accordingly the Company will ask shareholders at the
Annual General Meeting on 11 June 2001 to renew the authorisation of the Board
to purchase for cancellation up to 10% of the issued share capital of the
Company.



Plate Line and Fire Engineering



Work commenced on the building of Plate Line 6 in the last quarter of 2000 and
is scheduled for completion in the summer of 2001.  As well as plated products
complementing the Group's existing production, the new line is intended to
manufacture a new type of steel beam specifically developed and fire
engineered.  A patent has been applied for in relation to this innovation.
The beam is still being tested, but results already obtained from extensive
trials carried out to date show that a fire protection level in excess of two
hours should be attainable.  This opens up significant new value added markets
and will give the Group's clients a new, cost effective fire protection
solution for steel framed buildings.  This is particularly important in
high-rise construction where increasingly two hour fire protection of
steelwork is required.  This level of protection is currently being achieved
only through certain costly procedures such as 'boxing-in' of beams by
specialist sub-contractors.  It is anticipated that this beam will start to be
marketed in 2001.



In addition discussions continue with another UK fabricator and two major
non-fabricator parties related to our industry, in connection with the
construction of such beams alongside an existing cellular beam equivalent,
demand for which is already growing.  A further announcement in respect of
this proposed venture is expected to be made shortly.



Board Appointment



On 11 July 2000, Brian Hick was appointed to the Board as an Executive
Director, responsible for our international operations.  Brian is Managing
Director of our International subsidiary and is also a Director of
Severfield-Reeve Structures.  He has been with the Group for 11 years and we
look forward to him playing a significant role in the future.



Outlook



In recent statements I have said that the market remains competitive and
challenging.  The present outlook is no different and this position should be
set against the background of general economic concerns to which our industry
is not immune.



Nevertheless, the Group finds itself in the strongest financial position in
its history.  Since its foundation in 1979, the Group has become the
recognised market leader in the United Kingdom and a force within the industry
world-wide.  Our roster of repeat business from blue chip main contractors and
end user clients is testament to this.  Our financial strength matches our
position and reputation and is a significant comfort factor to our customers
when involved in major projects.  Furthermore it gives us the ability to
exploit acquisitive as well as organic opportunities for growth, as and when
they arise.



The Group remains strongly focused on competitiveness, efficiency and customer
service, just as it does on margins and order levels.  Currently orders are at
record levels, in excess of £75m, with a significant proportion arising from
negotiated contracts.  Current margin levels are, relative to a difficult
market place, broadly firm.



Investment in leading edge products and improvements to our production
facilities continues.  The new Plate Line 6 and fire-engineered beam are
reflective of the Board's emphasis in this direction.



Challenges in 2001 abound, both inside our industry and macro-economically.
However the Board's outlook is one of studied confidence for enhancement of
the Group's position and the continued profitable success of Severfield-Rowen.
  The Board looks forward to delivering to shareholders a further year of
satisfactory progress and demonstrable growth.



Peter Levine

Chairman





OPERATIONAL REVIEW



Core Business Overview



While the challenging market conditions of the last few years remain, the core
businesses of our Group, primarily Severfield-Reeve Structures and Rowen
Structures, produced excellent returns.  Key features of the core businesses
in 2000 were:



*         Pre-tax operating profit of £10.6m (1999: £9.8m)

*         Record order book in excess of £75m

*         Benefits of production from the fifth production line at our Dalton
          site for the second half of 2000

*         Commencement of building of the sixth production line for plated
          products.



Through careful management and planning, the Group's operating margins
increased in the second half of 2000 and the year ended very satisfactorily.



The fifth production line commenced operation in summer 2000 and, as
anticipated, performed in line with budget and contributed profitably to the
results.  At the end of the year production from the Dalton site alone was
averaging in excess of 1,400 tonnes per week as predicted in my Operational
Review last year.



Rowen Structures also maintained its good contribution to the Group.



Severfield-Reeve Structures



The outstanding levels of production efficiency achieved in previous years
continued during 2000.



Contracts were undertaken in a wide variety of sectors and projects included:



*         Extension to town centre shopping complex in Basingstoke

*         A production facility for Caterpillar in Leicester

*         Two office blocks in the City, at Northcliffe House and Bishopsgate

*         Retail development at Ocean Terminal, Leith Docks, Edinburgh

*         Lowry Galleria entertainment centre in Manchester

*         Power stations in Turkey, Egypt and Great Yarmouth for Bechtel

*         Distribution centre for Gap in Rugby

*         Distribution centre for Tibbett & Britten in Daventry

*         Global Switch 'Internet Hotel' building at East India Docks, London

*         Shopping complex and multiplex cinema in Romford

*         Large car park at the new exhibition centre, ExCel, in Docklands,
          London

*         Manufacturing facility in Scotland for Sun Microsystems

*         Computer data centre for Citibank in London



The current year has commenced most satisfactorily for Severfield-Reeve
Structures in persistently challenging conditions and the order book remains
at a record level.



New contracts include:



*         Distribution warehouse for LM Solutions in Hatfield

*         Office block for Standard Life in London

*         Distribution depots for Sainsbury

*         High rise office/residential block in Cardiff

*         New stadium for Darlington Football Club

*         Selfridges Store which forms part of the new Bull Ring development
          in Birmingham



Relative to prevailing market conditions Severfield-Reeve Structures achieved
significant success in 2000.  Taking into account the present strong order
book and enquiry levels, combined with the operating efficiencies of our
Dalton site, Severfield-Reeve Structures is well positioned to continue
progress in 2001.



This positioning will be complemented by the new Production Line 6 which is in
the process of being built for commencement of operation in summer 2001.  Line
6 will produce welded products and is also intended to manufacture a unique
fire engineered beam which will revolutionise fire protection solutions for
structural steelwork.  The preliminary benefits of these developments will be
felt towards the end of 2001 with the first full year of such benefits going
into 2002.



Rowen Structures



Rowen Structures had another good year in 2000.



The quality of work produced by Rowen is once again significant to mention as
is the contribution by our workforce in Nottingham.



A number of major contracts were performed by Rowen in 2000.  These included:



*         Stansted Passenger Terminal extension for BAA

*         North Terminal extension at Gatwick for BAA

*         Leisure and residential development at Broadway Plaza, Birmingham

*         Distribution depot for Sainsbury in Haydock

*         Distribution warehouse for Federal Express at Stansted

*         Theatre complex in Durham

*         A number of office developments in the City of London, including
          Arundel Great Court

*         Retail and Leisure Centre at Solihull for Lend Lease

*         A number of retail projects for Sainsbury



Contracts for 2001 include:



*         Tower Place office development in City of London for Tishman Speyer

*         Car park for BAA at Southampton Airport

*         Hospital development in Bromley, Kent

*         A number of projects for BAA at Heathrow/Gatwick

*         Office development in Finsbury Square, London

*         Refurbishment of Treasury Building in Whitehall



In 2001 Rowen is set to make a further positive contribution to the success of
the Group.



Steelcraft Erection Services



During 2000 Steelcraft continued demonstrating the value and importance of its
in-house erection service.  The flexibility it gives to the Group should not
be underestimated and this Company remains a positive contributor to the
success story of Severfield-Rowen.



Severfield-Reeve Projects



Severfield-Reeve Projects had a very good year in 2000 with turnover and
profit before tax at record levels.  As forecast, certain large contracts,
including the one for the National Crime Squad Northern Regional Head
Quarters, provided a significant contribution to performance.



The company is currently engaged on its largest single commercial development
providing a three storey office block for Teleware plc in Thirsk, North
Yorkshire.



2001 should be another very good year for this company with a number of
projects having been in negotiation for some time coming to fruition,
including a major relocation scheme in York for Dowding and Mills.



John Severs

Managing Director





FINANCIAL REVIEW



Overview



The Group's results for the year ended 31 December 2000 show a profit before
tax of £10.3 million after exceptional items, in line with City expectations,
and are very good in the continually demanding market conditions which have
broadly prevailed in the structural steel industry.  Returns in the core
business of the design, fabrication and erection of structural steelwork
actually exceeded expectations at £10.6 million.



In March 2000 the principal business and assets of the loss-making subsidiary,
Manabo, were sold.  The majority of the expected loss on sale was provided in
the 1999 Accounts with only an additional small loss affecting the 2000
results.



Group turnover in 2000 increased to £128.9 million, with Group profit before
tax being £10.3 million after exceptionals.



Basic earnings per share were 32.3p, with adjusted earnings being 35.7p.  It
is proposed that the level of dividend cover will be slightly reduced to 2.55
times adjusted earnings, with the total dividend for the year being increased
to 14.0p per share.



The year ended with an increased cash balance of £5.6 million, and no gearing.
Net assets increased by 9.8% to £33.1 million.



Turnover



Group turnover increased by 15.1% from that achieved in 1999 to £128.9 million
and can be analysed as follows:


                                                                  2000     1999

                                                                  £000     £000
Structural Steelwork

           - Severfield-Reeve Structures
                 UK
                                                                77,320   63,848

                 Overseas                                        4,148    3,690

                                                                40,600   39,812
           - Rowen Structures
                                                                19,691   16,649
           - Steelcraft Erection Services
                                                               141,759  123,999
Other Group Companies

           - Severfield-Reeve Projects                           9,406    4,294

           - Steel (UK)                                          2,460    1,523

           - Manabo                                                288      839

           - Surreal                                                 3        3
                                                               153,916  130,658

Inter-Group Trading                                            (24,986) (18,664)

Total                                                          128,930  111,994



Operating Profit



The Group's operating profit increased by 16.6% to £10.6 million, prior to the
deduction of the exceptional item in the 1999 Accounts caused by the sale of
the assets of Manabo.  It is also pleasing to report that, on a similar basis,
the overall Group operating margin increased from an already most satisfactory
8.1% in 1999 to 8.2% in 2000.



Manabo



On 3 March 2000 the glove making business and assets of Manabo were sold to
Wells Lamont Limited, a member of the American based Marmon Group of Companies
for a total consideration of £2.7 million.  This consideration was paid as an
initial payment of £2.1 million to be followed by two equal instalments paid
over the next two years of a total of £600,000.  In addition, a variable
royalty payment, based on the volume of gloves sold, will be paid over the
next five years up to a maximum of £475,000.



The remaining Manabo business, comprising the manufacture and sale of glove
and knife cleaning machines, together with knife sharpening machines, is now
non-trading.



Full provision for the total write-off as a result of the write-down to net
realisable value of the glove making fixed assets and stock, together with the
total write-down of the assets remaining was made in the Group accounts for
the year ended 31 December 1999, and amounted, in total, to £2.85 million.



Trading performance in the first two months of 2000, together with costs
associated with the closure of Manabo, produced a loss before tax for the year
of £308,000.



Taxation



The effective tax charge for the year was 37.7% compared to 30.8% in the
previous year.  In March 2001 the land and buildings at Dalton were sold as
part of a sale and leaseback transaction.  The effect of the sale and
leaseback in terms of taxation for the Group is that it will suffer a
liability of approximately £670,000 in respect of claw back of industrial
buildings allowances by the Inland Revenue.  Consequently this liability has
been provided for in these accounts as a deferred tax provision.  Had this
liability not been processed through the taxation charge in the profit and
loss account then the effective tax charge would be similar to 1999 at 31.2%.



Earnings Per Share



Basic earnings per share were 32.3p.  This calculation is based on the profit
after taxation of £6,429,000 and 19,890,551 ordinary shares, which is the
weighted average of the number of shares in issue during the year.



This calculation, however, reflects the increase of £670,000 to the tax charge
caused by the claw back of industrial buildings allowances.  Adjusted earnings
per share, based on the profit after taxation, excluding the additional tax
charge, of £7,099,000 is, therefore, 35.7p.



Dividend



The Board is recommending a final dividend of 8.75p per share (1999: 7.0p),
bringing the total dividend for the year to 14.0p per share, a 16.7% increase
over the total of 12.0p paid in 1999.  This total dividend is covered 2.31
times by basic earnings per share.  The cover based on adjusted earnings is
2.55 times, slightly lower than the 2.57 times covered by 1999 adjusted
earnings.



The final dividend is payable on 13 June 2001 to shareholders on the register
on 11 May 2001.  The ex-dividend date will be 9 May 2001.



Balance Sheet



The balance sheet continues to strengthen with shareholders' funds increasing
by £2.9 million in the year to £33.1 million, which equates to a value per
share at 31 December 2000 of 167.3p, compared to 150.6p at the end of 1999.



We have continued our capital investment programme, with capital expenditure
for the Group amounting to £5.6 million.  The majority of this expenditure was
carried out at the main fabrication plant at Dalton, where over £4.2 million
was expended.  This consisted primarily of the building and equipping of the
No. 5 production line.



Other significant expenditure during the year included the purchase of three
new mobile cranes by Steelcraft for use on sites for the erection of steel.



Towards the end of the year we commenced the building of the No. 6 production
line.  As highlighted in the Chairman's Statement and Operational Review this
will involve the manufacture of plated products using state-of-the-art
technology, as well as a unique fire engineered product.  This line is
expected to be operational by June 2001 at a budgeted cost of £5 million.
This expenditure accounts for the majority of the Group's budgeted capital
expenditure of £6 million for 2001.



During the year the Company purchased for cancellation a total of 248,510
ordinary shares at a cost of £487,000 with net assets, consequently, being
reduced by this amount.



A revaluation of the Group's land and buildings at Dalton was carried out in
February 2001 in connection with its sale and leaseback.  This valuation
produced a deficit of £251,000, compared to net book value, which has been
offset against the revaluation reserve.



Sale and Leaseback



On 9 March 2001 at an extraordinary general meeting of the Company it was
agreed that the sale and leaseback of the Dalton facility should proceed
through the disposal of the shares of Dalton Airfield Properties Ltd.



Full particulars of the sale are provided in a circular issued to shareholders
on 21 February 2001.  The facility has been sold for a cash consideration of £
14 million and then leased back to the Company at an initial rent of £1.36
million.



The sale proceeds will initially be used to fund the building of the new plate
line, to finance the ongoing share buy-back programme and to provide
sufficient additional working capital for the Group.



Cash Flow



Management of the Group's cash has always been of prime importance and will
continue to be so.  During the year £8.7 million was generated from operating
activities, plus a further £2.1 million from the Manabo disposal during the
year and the final balance of £400,000 as a result of the sale of the assets
of Structural Metal Decks in 1998.



Outflows of cash during the year included dividends paid of £2.4 million,
corporation tax of £1.5 million and the purchase of fixed assets, net of sale
proceeds and new hire-purchase contracts, of £3.7 million.  In addition, the
repayment of financing amounted to £2.5 million.



Consequently, the year brought an overall increase in cash of almost £700,000,
with the Group ending the year with a positive cash balance of £5.6 million.



Borrowings, represented by amounts due on hire-purchase contracts, amounted to
£2.7 million leaving a net funds surplus of £2.9 million and, therefore, no
gearing.



Treasury



Group treasury activities are managed and controlled centrally.  Risks to
assets and potential liabilities to customers, employees and the public
continue to be insured with reputable insurers.  The Group maintains its low
risk financial management policy by insuring all significant trade debtors.



The Group is committed to strong financial controls, cash management and
prudent accounting and treasury policies.



P J Davison

Finance Director





Consolidated Profit and Loss Account

For the year ended 31 December 2000


                                    Continuing Discontinued      2000      1999

                                    Operations   Operations     Total     Total

                                          £000         £000      £000      £000
Turnover                               128,642          288   128,930   111,994
Cost of sales *                      (114,591)        (357) (114,948) (101,719)
Gross profit                            14,051         (69)    13,982    10,275

Distribution costs                       (437)         (63)     (500)     (817)

Administration costs                   (2,842)        (150)   (2,992)   (2,357)
                                        10,772        (282)    10,490     7,101

Other operating income                      75            -        75        91
Operating profit                        10,847        (282)    10,565     7,192


Loss on disposal of assets
in discontinued business                     -            -         -     (980)
                                        10,847        (282)    10,565     6,212

Interest payable and similar             (215)         (26)     (241)     (287)
charges
Profit on ordinary                      10,632        (308)    10,324     5,925
activities before tax



Tax on profit on ordinary              (3,953)           58   (3,895)   (1,822)
activities
Profit on ordinary activities            6,679        (250)     6,429     4,103
after tax for the financial year


Dividends payable to
equity shareholders                    (2,748)            -   (2,748)   (2,414)
Profit retained,                         3,931        (250)     3,681     1,689
transferred to reserves


Basic earnings per share                                    32.32p       20.50p

Adjustment for exceptional items                             3.37p       10.32p
Adjusted earnings per share,
excluding exceptional items                                 35.69p       30.82p


Diluted earnings per share                                  32.22p       20.32p

Dividends per share

     Interim dividend paid                                   5.25p        5.00p

     Final dividend proposed                                 8.75p        7.00p
Total                                                       14.00p       12.00p



*  The comparative figure for 1999 includes £1.872 million in relation to
exceptional costs.




Consolidated Balance Sheet

31 December 2000


                                                         2000             1999

                                                         £000             £000
Fixed assets

Tangible assets                                        26,432           24,558

Investment properties                                      88              330

Investments                                               464              464
                                                       26,984           25,352


Current assets

Stocks                                          4,670            5,236

Debtors                                        28,739           25,312

Cash at bank and in hand                        5,618            4,938
                                               39,027           35,486



Creditors - amounts falling due within one   (29,177)         (27,404)
year


Net current assets                                      9,850            8,082
Total assets less current liabilities                  36,834           33,434



Creditors - amounts falling due
after more than one year                              (1,554)          (1,885)



Provisions for liabilities and charges                (2,185)          (1,399)
                                                       33,095           30,150


Capital and reserves

Called up share capital                                 1,978            2,002

Share premium account                                   8,527            8,526

Revaluation reserve                                     1,335            1,609

Merger reserve                                            114              114

Capital redemption reserve                                 25                -

Profit and loss account                                21,116           17,899
                                                       33,095           30,150





Consolidated Cash Flow Statement

For the year ended 31 December 2000


                                                         2000              1999

                                                         £000              £000
Net cash inflow from operating activities               8,657             6,387

Returns on investments and servicing of finance         (276)             (197)

Taxation                                              (1,477)           (2,944)

Capital expenditure and financial investment          (3,735)           (2,269)

Acquisitions and disposals                              2,490               344

Equity dividends paid                                 (2,430)           (2,403)
Cash inflow/(outflow) before use of liquid
resources and financing
                                                        3,229           (1,082)
Financing
                                                      (2,549)           (1,472)
Increase/(decrease) in cash in the year                   680           (2,554)





Reconciliation of net cash flow to movement in net funds


                                                             2000          1999

                                                             £000          £000
Increase/(decrease) in cash in the year                       680       (2,554)

Cash flow from movement in loans and hire-purchase          2,064         1,484
contracts
Change in net funds from cash flows                         2,744       (1,070)

New hire-purchase contracts                               (1,385)             -
Movement in net funds in the year                           1,359       (1,070)

Net funds at 1 January                                      1,581         2,651
Net funds at 31 December                                    2,940         1,581




Supplementary Statements

For the year ended 31 December 2000



Statement of Total Recognised Gains and Losses
                                                             2000         1999

                                                             £000         £000
Profit attributable to members of the Group                 6,429        4,103

Unrealised (deficit)/surplus on revaluation of properties   (251)           73

Foreign currency translation gain                               -           12
Total recognised gains and losses for the year              6,178        4,188



Reconciliation of Movements in Shareholders' Funds
                                                       2000                1999

                                                       £000                £000
Profit for the financial year                         6,429               4,103

Dividends                                           (2,748)             (2,414)

Issues of shares - net                                    2                 420

Purchase of shares                                    (487)                   -

Revaluation adjustment                                (251)                  73

Foreign currency translation gain                         -                  12
Net addition to shareholders' funds                   2,945               2,194

Opening shareholders' funds                          30,150              27,956
Closing shareholders' funds                          33,095              30,150



Notes:



1)                   The above financial information does not amount to full
accounts within the meaning of section 240 of the Companies Act 1985.  Full
accounts for the year ended 31 December 2000 have not yet been audited or
delivered to the Registrar of Companies.  The Annual Report is due to be
posted to shareholders on or around 9 May 2001.  A copy of the statutory
accounts for the year ended 31 December 1999 has been delivered to the
Registrar of Companies.  The Auditor's Report on those accounts was not
qualified and did not contain a statement under section 237 (2) or (3) of the
Companies Act 1985.


2)                   The basic earnings per share figure for the year ended 31
December 2000 is based on the profit after taxation of £6,429,000 (1999: £
4,103,000) and 19,890,551 (1999: 20,013,133) ordinary shares, being the
weighted average of the number of shares in issue during the period.

The adjusted earnings per share figure for the year ended 31 December 2000 is
based on the profit after tax, excluding the £670,000 exceptional tax charge
caused by the claw back of industrial buildings allowances, of £7,099,000 and
19,890,551 ordinary shares, being the weighted average of the number of shares
in issue during the period.

The adjusted earnings per share figure for the year ended 31 December 1999 is
based on the profit after taxation, excluding the exceptional item, of £
6,169,000 and 20,013,133 ordinary shares, being the weighted average of the
number of shares in issue during the period.