Final Results

Trifast PLC
18 June 2001



Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Monday, 18 June 2001     Embargoed: 7.00am


                                 Trifast plc

                             Preliminary Results

                       for the year ended 31 March 2001


  * Turnover £121 million

  * International businesses contributed 25% of sales and operating profit

  * Profit before tax - pre bad debt provision, up 10% to £12.23 million

  * Adjusted diluted EPS up 10.2% to 12.00p

  * Final dividend 2.49p - total for the year 3.75p, up 9.3%

  * Gross margins slightly ahead at 28.8%

  * Gearing 14.6%

  * Logistics operations expanded in Mexico, Hungary and Shanghai

  * Post year end Group strengthened its global network through Taiwanese
    acquisition


'By the end of the third quarter, the Trifast Board was looking forward to a
record last three months of sales and profitability as we went into 2001.


'However, the last quarter did not generate the anticipated growth, and demand
especially in the Information Technology sector fell sharply with no warning.
Our geographic spread normally absorbs 'peaks and troughs' in customer
activity; however this time, the fall in demand was evident in most sectors
and on all three Continents at the same time.


'The current year has got off to a disappointing start with the first two
months sales being 14% down on the same period last year. Performance for the
rest of the year is difficult to predict and will depend on whether the
current slow down develops into a recession or turns out to be merely a short
term period of unprecedented destocking.


'Nevertheless, we will continue to invest so that when demand does return we
will be able to take full advantage of this recovery with an even broader
spread of geographic supply facilities, lower internal supply-chain costs and
additional specialist managers. £1million of direct costs have already been
removed so as not to impede alternative investments required in order to gain
maximum benefit from the up-turn.'


                           FULL STATEMENT ATTACHED

Enquiries:

Malcolm Diamond, Chief Executive     Today: 020 7282 8000 (8.15am - 10.30am)

John Wilson, Group Finance Director  Mobile: [phone] (MMD)/07711
                                     103915 (JW)

Trifast plc     Thereafter: 01825 747600

Web-site: www.trifast.com

Email: [e-mail]


Fiona Tooley     Today: 020 7282 8000

Citigate Dewe Rogerson     Mobile: [phone]

Thereafter: 0121 455 8370


                                     -2-




                                 Trifast plc

                             Preliminary Results

                       for the year ended 31 March 2001



JOINT STATEMENT BY THE CHAIRMAN, DAVID DUGDALE and

CEO MALCOLM DIAMOND, MBE

We are pleased to be able to report to you on a year where the uninterrupted
growth of your company has continued, although at a slower rate than in the
past.


It has been a challenging year, particularly in the second half of the
financial year when we saw a slow down of customer activity and where we
implemented a significant amount of restructuring across the Group to lay the
foundations for the future.


Despite this, we have remained focused and achieved what we believe to be a
creditable set of results.


Financial Highlights

The Group's profit for the year before tax and goodwill increased by 6.6% from
£11.12 million to £11.85 million. The increase would have been 10.0% to £12.23
million had we not decided it was prudent to fully provide for a possible bad
debt of £383,000.


This arose late in March this year when the Dutch subsidiary of a major US
sub-contractor had its assets frozen as a result of its parent filing for
Chapter 11 protection from its creditors. Up until then the customer had been
paying on time and we continue to trade with them on a cash against delivery
basis.


Adjusted diluted earnings per share (before goodwill amortisation) rose by
10.2% from 10.89 pence to 12.00 pence. Turnover was £121.4 million compared
with £113.3 million in 2000, an increase of 7.2%. Gross margins were slightly
up on the comparable period at 28.8%. Our overseas operations contributed 25%
of our operating profit pre goodwill and 25% of our turnover, an improvement
over the previous year when the figures were 23% and 21% respectively.
Shareholders' funds increased by 19% to £39.6 million and gearing remained
broadly unchanged at 14.6%


Dividend

The Board is recommending a final dividend of 2.49 pence net per share (2000:
2.29p re-stated following the 3 for 1 bonus issue in August 2000) which
together with the interim paid of 1.26 pence (2000: 1.14p restated) makes a
total of 3.75 pence net per share for the year (2000:3.43p restated), an
increase of 9.3%. The total dividend is covered three times by earnings.


If approved at the Annual General Meeting on 23 August 2001, the final
dividend will be paid on 4 September 2001 to shareholders on the Register as
at 29 June 2001.


Trading

Up until December 2000 we were achieving plan, but from January to March a
large number of strategic customers reported excess inventory, from components
to finished product, and consequently froze incoming deliveries. However, this
unprecedented blockage in the supply chain can only be temporary, therefore,
we have continued our investment plan in premises and personnel for Mexico and
Hungary expansion.




continued...


                                     -3-




Acquisitions

Since the year-end, we are delighted to have concluded the acquisition of
Special Fasteners Engineering Co. Ltd (SFE) in Taiwan in May 2001 as the first
tangible success resulting from our current planned acquisition programme.
SFE, which has QS9000 quality approval, was established 18 years ago and
employs 105 staff. Based in Kaohsiung Taiwan, SFE manufactures and distributes
industrial fasteners supplying a large number of major distribution companies
across a variety of industries both in Europe and the U.S.A.


Trifast will pay a maximum consideration of New Taiwanese dollars ('NT$') 722m
(approximately £15.26m) of which 80% was paid in cash on completion with the
balance being retained to cover normal warranties and which will be released
over the next three years.


In the year ended 31st December 2000, SFE had unaudited sales of NT$550.7m
(approximately £11.64m), and unaudited operating profits after adjustment for
various non recurring items of NT$79m (approximately £1.67m). Unaudited net
assets at 31st December 2000 were NT$233.6m (approximately £4.94m).


We are focusing strongly on the Asian market for three reasons:


        a)     it is a highly fragmented market within the fastener supply
        sector, and so lends itself to substantial benefits by developing a
        market leading vendor position;

        b)     Asia continues to be the favoured region for high volume/low
        cost assembly - especially in electronics; and

        c)     the Trifast Asia management team has the skills and the
        appetite for driving high levels of growth by acquisition.


Our reasons for inviting SFE to join our team revolve principally around their
'best of breed' status as a QS9000 fastener manufacturer, thus providing high
profitability performance whilst delivering high quality/low cost components
for our international logistics distribution teams. SFE's highly developed
management skills also enable Trifast to develop SFE in Taiwan as an Asian
purchasing/stocking Hub, in order to lower prices, costs and delivery times to
Europe and the USA. We see this as essential, both for the preservation of our
premium profit margin requirements in a deflationary price market, and for
reducing our exposure to stock obsolescence in supplying JIT programmes to
customers with limited forward vision on production quantity demand.


Continuing strategy in the current market

Growing our international network as a key strategy is not solely dependent on
acquisitions. We are also capitalising on web based IT in the form of our 'New
Horizons' framework and closely managed alliances with synergistic
internationally spread component manufacturers whose products can be delivered
by us alongside our fasteners.


The 'New Horizons' network will be fully linked by the end of June 2001, from
Europe to the USA and Asia, and the Alliance initiative is now bringing in new
major customer bidding activities for product supply to each of the partners.



continued...


                                     -4-




By the end of the third quarter, the Trifast Board was looking forward to a
record last three months of sales and profitability as we went into 2001.
Following our re-organisation last year, there is very clear visibility on
customer sector trends, now that we have separate sales management functions
for Information Technology, Household Appliances, Automotive Sub-Assemblies
and General Industrial. However, the last quarter did not generate the
anticipated growth, and demand especially in the Information Technology sector
fell sharply with no warning. Our geographic spread normally absorbs 'peaks
and troughs' in customer activity; however this time, the fall in demand was
evident in most sectors and on all three Continents at the same time.


The impact on our year-end result due to the last quarter drop was negated by
our bonus system, which accrues every month in anticipation of hitting our
predicted profit target. At the end of this year, despite supreme efforts by
our Directors, managers and staff, virtually no bonuses were awarded.


At the time of writing, the global message from major players in the
Information Technology manufacturing sector is 'no visibility'. Extensive
research into this hitherto unprecedented collapse in demand mainly attributes
this to a massive build-up of excessive inventory caused first by electronic
component shortages, followed by panic doubling-up of orders in 2000,
exacerbated by over-optimistic demand forecasting for finished products, in
particular internet-enabled mobile phones.


Clearly, this has proved to be a disappointing interruption in our growth
record, albeit that it is only temporary; however, the implications are
undoubtedly more serious for some of the major sub-contract assemblers that
have grown up so rapidly in recent years. Many of these will find 2001 very
challenging as they are highly geared, with cash flow and profitability being
extremely 'volume-sensitive'. However for Trifast, given its strong financial
and strategic position, we believe that 2002 is going to be extremely
exciting.


Rule 410.C

Our shares were dropped from the FTSE All share index in early December 2000 -
a move which resulted in a number of tracker funds being obliged to sell their
Trifast holdings. This exit from the index was due to a directive by FTSE
International designed to weed out shares that are rarely traded, such as
those companies which have large family holdings. However, it also catches
high growth companies such as ours whose shares are in demand from
institutions and which have been bought to hold for the long term. This
directive needs some modification to avoid this happening again. We will
therefore be working with other smaller companies to lobby on this particular
issue, and to this end our CEO, Malcolm Diamond has been nominated Chairman of
the Smaller Quoted Companies (SQC) Working Committee under the auspices of the
CBI.


People

In August 2000, we strengthened our non-executive team through the appointment
of Ben Stevens. Ben's considerable operational and international expertise
will be invaluable to Trifast as we roll-out our plans for further overseas
expansion. He has been with BAT plc since 1990. He has held a number of senior
roles within the BAT Group both in the UK and overseas and currently focuses
on M&A and e-business as Development Director.


In addition, we also further strengthened the executive team on the main board
with the appointments of Steven Tan and Steven Franklin with effect from April
1st this year.




continued...

                                     -5-




Steven Tan joined the Group when it acquired Formac Technologies in 1997.
Since then Steven has been responsible for our fast growing Asian Operations
whilst also playing a key role in the subsequent acquisition in Malaysia and
in setting up Trifast's distribution company in China. Post year end, Steven
played a pivotal role in negotiating our acquisition of SFE, in Taiwan.


Steven Franklin joined the Group in 1999 after having spent a number of years
with a major European distributor. With his considerable experience of working
with acquired subsidiaries he has operational responsibility for TR Europe.


We would also like to welcome the founder and managing director of SFE, Leon
Huang to the Group. He will work closely with Steven Tan in the Far East
region.


In early June 2001 we welcomed our new TR Europe Group Purchasing Director
Wendy Stopher, who joins us from BAe Systems.


There is no doubt that the addition of these capable individuals and the
wealth of international experience that they bring to the Group will
contribute greatly to the continuing development of Trifast's worldwide
network.


The board and staff would also like to congratulate our Chief Executive,
Malcolm Diamond on his MBE awarded in the New Year's Honours list for services
to industrial entrepreneurship and links with the business community. He
openly acknowledges the contribution that the people within Trifast have made
to this honour.


Our philosophy has always been that our people are our most vital asset. On
behalf of the Directors and shareholders we would like to thank every member
of staff around the Group for their considerable amount of hard work and
dedication in a year where we have experienced many changes both from within
the organisation and from external factors.


Prospects

The current year has got off to a disappointing start with the first two
months sales being 14% down on the same period last year. Performance for the
rest of the year is difficult to predict and will depend on whether the
current slow down develops into a recession or turns out to be merely a short
term period of unprecedented destocking.


Nevertheless, we will continue to invest so that when demand does return we
will be able to take full advantage of this recovery with an even broader
spread of geographic supply facilities, lower internal supply-chain costs and
additional specialist managers. £1million of direct costs have already been
removed so as not to impede alternative investments required in order to gain
maximum benefit from the up-turn.


We strongly believe that Trifast is well balanced, both geographically and by
customer mix, financially strong, highly competitive and well positioned to
benefit from the increased growth in our market place when it occurs.
Therefore, Trifast's continuing growth is not a question of 'if', it is a
matter of 'when', and we are planning for momentum to return in 2002 onwards.


18 June 2001


                                     -6-




                                 Trifast plc

                             Preliminary Results

                       for the year ended 31 March 2001



FINANCIAL REVIEW BY THE GROUP FINANCE DIRECTOR, JOHN WILSON


Despite the economic situation that exists as I write this review and which
appears to be pandemic, Trifast performed in line with expectations in the
year to March 2001.


Sales increased organically by 7% to £121.4m and when compared to our interim
results, it is apparent that the economic pressure manifested itself in our
second half, and particularly our last quarter. I am pleased to report that
gross margins increased slightly to 28.8%, both from last year and our
interim, and that sales from our overseas operations increased to 25% of the
total.


Overheads, before goodwill, held as a percentage of sales (18.7%), which is
encouraging as we also incurred a large amount of revenue expenditure to
support our planned investment strategy.


This provided an operating profit pre goodwill of £12.2m and a profit before
tax of £11.5m both of which maintained the same percentages of sales as last
year, as did the EBITDA of £13.9m.


Our interest payments only marginally increased with interest paid covered 22
times.


I am also pleased with our effective tax rate improvement to 27.6% which is a
combination of both improved rates in some of the areas in which we operate,
and tax planning.


My disappointment concerns the provisioning on a potential unrecoverable debt
due to our Dutch subsidiary. The customer concerned is an American owned sub
contractor to Compaq. The parent company in the US has applied for protection
under Chapter 11 which also covers their subsidiary in the Netherlands and it
was only on 26 March that we received the notification. There were no major
amounts overdue, indeed payments had been drawn up for us before the court
order stopped them, and we continue to trade with the customer on a pro forma
basis, which protects our stock investment. There is a possibility that the
debt will be honoured but we have taken the view to provide for the debt due
to the uncertainty.


We now operate an even more stringent credit control procedure as we do trade
with a number of highly geared, top line sensitive companies. In addition, we
will be making a major precautionary provision just in case any other bad
debts materialise within this specific customer sector during the current
year.


Overall, our credit control performance was still good during the year with
debtor days being 76, with 90 and 120 day balances being 1.7% of total
debtors.


Turning to our balance sheet, net assets improved by 19% to £39.6m and with
net debt of only £5m, there are opportunities for future growth.


Our capital expenditure of £2.9m was similar to last year with depreciation
slightly up at £1.7m.



continued...


                                     -7-




Gearing and return on capital were broadly consistent with last year, showing
percentages of 14.6% and 22.0% respectively.


Following the adjustment for the bonus issue instigated after approval at last
year's AGM, our earnings per share (adjusted diluted before goodwill
amortisation) increased by 10.2% to 12.00p.


So all in all, another good year for Trifast, with ratios generally moving in
the right direction.


During the year, we made the decision to close our business in Arundel, West
Sussex (Ivor Green (Exports) Ltd). This was because the subsidiary had
fulfilled its primary function of providing the rest of the Group with a large
amount of trading stock. All closure costs, which were minimal, associated
with Ivor Green have been accounted for in this year's accounts. This has not
been disclosed in the Group Financial Statements as a discontinued operation,
on the basis of materiality.


Of our total cash balances of £3.3m, £1.7m relates to currencies other than
Sterling and as we trade in a number of foreign currencies, particularly the
US dollar, we match inflows and outflows which minimises risk.


We also monitor exchange rates and occasionally purchase or sell currencies to
maximise return, but we do not enter into hedging contracts as a matter of
course. During the year we made a net gain on trading of £67k.


The largest use of our cash during the period was the funding of the inventory
level which reflected the continued investment in stock for new contracts and
sites as well as further consignment stock arrangements that proliferate
within our customers. This resulted in an increase in our gross stock turn of
8 days which is a far smaller percentage increase than our stock value, but
which does indicate the work we have to do to manage this further along the
supply chain in order to preserve cash flow. In previous years our aggressive
stock write down policy has been widely praised, but in this current year it
will undoubtedly impact our profit performance.


Turning to current assets, these increased during the year to £53.3m from £
51.0m, at the end of the previous year, and £52.6m at the interim.


Since the year end we have increased our borrowings by nearly £12.5m to cover
the initial consideration for our Taiwanese acquisition. Obviously this
increases our debt, but our financial position still provides adequate scope
to pursue further acquisitions.


Finally, as my colleagues and I view the current year and beyond, we are very
much aware of the current position within the electronics and
telecommunications sector, our main market. Following the new structure
operating within TR Europe, our revitalised sales team, in addition to those
in Asia and America, are very focused on increasing the levels of business
within existing customers and securing new target accounts. From the finance
perspective, my team will ensure the additional business is not at the expense
of margin and also that operating expenses match the level of business. It is
a challenge that all of us face, but it is one we relish as we see it as an
opportunity to further improve the operational efficiencies within Trifast.


18 June 2001


                                     -8-




                                 Trifast plc

                             Preliminary Results



Consolidated profit and loss account for the year ended 31 March 2001



                                            2001                  2000
                                    £000       £000       £000       £000

Turnover - continuing operations               121,426               113,313

Cost of sales                                  (86,430)              (80,774)

Gross profit                                   34,996                32,539
Distribution costs                             (3,760)               (2,624)
Administrative expenses (before     (18,996)              (18,434)
goodwill)
Goodwill                            (327)                 (317)


Total administrative expenses                  (19,323)              (18,751)
Other operating expenses                       3                     (20)


Profit on ordinary activities                  11,916                11,144
before interest
Interest receivable                            155                   191
Interest payable and similar                   (545)                 (534)
charges


Profit on ordinary activities                  11,526                10,801
before taxation
Tax on profit on ordinary                      (3,185)               (3,317)
activities


Profit for the financial year                  8,341                 7,484
Dividends paid and proposed                    (2,680)               (2,451)


Retained profit for the financial              5,661                 5,033
year


Earnings per share:
Basic                                          11.67p                10.55p
Diluted (after goodwill                        11.54p                10.44p
amortisation)
Adjusted diluted (before goodwill              12.00p                10.89p
amortisation)




There is no material difference in profit on ordinary activities before
taxation and profit for the financial year stated above and the historical
cost equivalents and therefore no separate note of historical cost profits and
losses has been presented.


                                     -9-




                                 Trifast plc

                             Preliminary Results



Consolidated Balance sheet at 31 March 2001


                                             2001                2000
                                      £000      £000      £000      £000
Fixed assets
Intangible assets - goodwill          5,741               6,068
Tangible assets                       14,579              13,621

                                                20,320              19,689
Current assets
Stocks                                24,961              19,627
Debtors                               25,050              26,331
Cash at bank and in hand              3,264               5,051

                                      53,275              51,009

Creditors: amounts falling due within (26,659)            (29,566)
one year


Net current assets                              26,616              21,443


Total assets less current liabilities           46,936              41,132
Creditors: amounts falling due after
more than one year
                                                (6,615)             (7,038)
Provisions for liabilities and                  (723)               (874)
charges


Net assets                                      39,598              33,220



Capital and reserves
Called up share capital                         3,590               891
Share premium account                           4,470               5,872
Revaluation reserve                             1,017               1,017
Merger reserve                                  726                 947
Profit and loss account                         29,795              24,493


Equity shareholders' funds                      39,598              33,220



                                     -10-



                                 Trifast plc

                             Preliminary Results


Consolidated cash flow statement for the year ended 31 March 2001


                                           2001                  2000
                                   £000       £000       £000       £000

Cash flow from operating                      8,003                 11,071
activities

Return on investments and          (376)                 (338)
servicing of finance

Taxation                           (3,869)               (3,553)

Capital expenditure                (2,558)               (2,913)

Acquisitions and disposals         (446)                 (1,863)

Equity dividends paid              (2,533)               (2,290)


                                              (9,782)               (10,957)


Cash (outflow)/ inflow before                 (1,779)               114
financing

Financing
Issue of ordinary share capital    407                   425
(Decrease)/Increase in debt        (309)                 1,641


Net cash flow from financing                  98                    2,066


(Decrease)/Increase in cash in the            (1,681)               2,180
year




                                     -11-



                                 Trifast plc

                             Preliminary Results

                       for the year ended 31 March 2001


Reconciliation of net cash flow to movement in net debt


                                                        2001             2000
                                              £000      £000   £000     £000

(Decrease)/Increase in cash in the year       (1,681)          2,180
Cash inflow from decrease/(increase) in debt  309              (1,641)
and lease financing
                                              _______           _______
Change in net debt resulting from cash flows           (1,372)          539
Loans and finance leases acquired with                 -                (365)
subsidiaries
Translation difference                                 (7)              (2)


Movement in net debt in the year                       (1,379)          172
Net debt at beginning of year                          (3,678)          (3,850)


Net debt at end of the year                            (5,057)          (3,678)



Consolidated statement of total recognised gains and losses

for the year ended 31 March 2001


                                                        2001        2000
                                                        £000        £000

                                                        
    Profit for the financial year                       8,341       7,484
                                                             
    Currency translation differences on foreign         199         (192)
    currency net investments
                                                              
    Unrealised surplus on revaluation of land and       -           1,017
    buildings


                                                        
    Total recognised gains relating to the financial    8,540       8,309
    year





                                     -12-




                                 Trifast plc

                             Preliminary Results

                       for the year ended 31 March 2001

                                    NOTES



1     Geographical segments


        The Group's turnover, analysed by geographical market of destination,
        is as follows:


                                      2001                 2000

                                      £000                 £000

United Kingdom                        83,477               82,547
European Union (excluding UK)         21,500               15,963
Europe - other                        4,039                4,878
North and South America               6,417                5,240
Far East                              5,678                4,509
Other                                 315                  176

                                      121,426              113,313



        The Group's turnover, profit before tax and net assets, analysed by
        geographical market of origin, are as follows:


                          UK            Asia       Rest of World       Group
                    2001     2000   2001   2000    2001   2000     2001    2000
                    £000     £000   £000   £000    £000    £000     £000    £000
Turnover

Total sales       96,765   92,895  8,998  7,653  25,423 20,309  131,186 120,857
Inter segment     (5,825) (3,769)  (2,558)(2,293)(1,377)(1,482) (9,760) (7,544)
sales

Sales to third    90,940  89,126   6,440  5,360  24,046 18,827  121,426 113,313
parties

Profit before
taxation

Segment profit    9,170   9,040    2,368  1,647  705    774     12,243  11,461
before goodwill
Goodwill          (88)    (88)     -      -      (239)  (229)   (327)   (317)
amortisation


Profit before     9,082   8,952    2,368  1,647  466    545     11,916  11,144
interest
Net interest                                                    (390)   (343)


Profit on ordinary activities                                   11,526  10,801
before taxation


Segment net       32,985  28,499   6,196  3,918  417    803     39,598  33,220
assets


        Turnover is predominantly derived from the manufacture and logistical
        supply of industrial fasteners and category 'C' components.



continued...


                                     -13-




        2     Profit on ordinary activities before taxation

                                                                    2001  2000

                                                                    £000  £000
Profit on ordinary activities before taxation is stated after
charging and (crediting):
Auditors' remuneration:
Audit                                                               152   142
Other fees paid to the auditors and their associates                164   186
Depreciation and other amounts written off tangible fixed assets:
Owned                                                               1,629 1,439
Leased                                                              29    35
Hire of plant and machinery - operating leases                      45    47
Hire of other assets - operating leases                             1,125 1,061
Loss on disposal of fixed assets                                    78    192
Rents receivable from property                                      (41)  (44)
Net exchange gains                                                  (67)  (67)
Goodwill amortisation                                               327   317
Exceptional bad debt provision                                      383   -


        The total amount charged for the hire of plant and machinery amounted
        to £49,000 (2000: £51,000). This comprises rentals payable under
        operating leases as well as depreciation on plant and machinery held
        under finance leases together with the related finance charges.


        The audit fee included for the Company was £32,000 (2000: £30,000).
        The auditors also received Nil (2000: £14,000) which had been
        capitalised as part of the cost of the acquisitions.


        The tax effect of the above exceptional bad debt provision is £130,000
        (2000: Nil).


        3     Interest payable and similar charges

                                                        2001        2000
                                                        £000        £000

On bank overdraft                                       5           46
Finance charges payable in respect of finance leases    7           10
and hire purchase

contracts
Loans and mortgages                                     524         476
Other                                                   9           2


                                                        545         534


        4     Taxation

                                           2001              2000
                                           £000              £000

UK corporation tax at 30% (2000: 30%)      2,597             2,793
Overseas taxes                             770               608
Deferred taxation                          (151)             (55)
Adjustment relating to an earlier year     (31)              (29)

                                           3,185             3,317



continued...

                                     -14-



        5     Dividends

Ordinary shares:                                      2001         2000
                                                      £000         £000

Interim paid - 2001: 1.26p per share (2000: 1.14p     905          810
restated)
Final proposed - 2001: 2.49p per share (2000: 2.29p   1,775        1,641
restated)

Total dividend                                        2,680        2,451




        6     Earnings per share

Earnings per share                                  2001          2000
                                                    £000          £000

Post tax profit for the financial year              8,341         7,484
Goodwill amortisation charge                        327           317


Post tax profit for the year before goodwill        8,668         7,801
amortisation





        7     Reconciliations of movements in shareholders' funds

                                            Group                Company
                                    2001       2000       2001       2000
                                    £000       £000       £000       £000

Profit for the financial year       8,341      7,484      3,035      2,750
Dividends                           (2,680)    (2,451)    (2,680)    (2,451)


Retained profit for the year        5,661      5,033      355        299
Capitalisation of reserves on issue (887)      (448)      -          -
of shares to QUEST
Issue of ordinary shares            1,403      1,422      1,403      1,422
Exchange gains/(losses)             199        (192)      -          -
Revaluation                         -          1,017      -          945
Reduction in Goodwill               2          -          -          -


Net addition to shareholders' funds 6,378      6,832      1,758      2,666
Opening shareholders' funds         33,220     26,388     27,943     25,277


Closing shareholders' funds         39,598     33,220     29,701     27,943




        8.     The financial information set out above does not constitute the
        company's statutory accounts for the years ended 31 March 2000 or 2001
        but is derived from those accounts. Statutory accounts for 2000 have
        been delivered to the Registrar of Companies, and those for 2001 will
        be delivered following the company's Annual General Meeting. The
        auditors have reported on those accounts; their reports were
        unqualified and did not contain statements under Section 237(2) or (3)
        of the Companies Act 1985.


        9.     This statement is not being posted to shareholders. The Report
        & Accounts for the year ended 31 March 2001 will be posted to
        shareholders in July 2001. Further copies will be available from the
        Company's Registered Office: Trifast House, Bellbrook Park, Uckfield,
        East Sussex, TN22 1QW.


        10.     The Annual General Meeting will be held on Thursday, 23 August
        2001, 12noon, at the Company's Registered Office as above.