Interim Results

Lupus Capital PLC
26 September 2003


Lupus Capital plc

Interim results for the six months ended 30 June 2003

Lupus Capital plc ('Lupus') today announced its unaudited interim results for 
the six months ended 30 June 2003

Highlights
     
•    Good progress on the strategy to realise value. Proposals expected to be 
     announced in the current period

•    Operating profit before goodwill amortisation £1,197,000 (2002: 
     £1,013,000), an increase of 18% on turnover of £2,886,000 (2002: 
     £3,027,000)

•    Profit before tax increased by 6% to £541,000, after a loss of £200,000 on 
     the realisation of investments

•    Gall Thomson continues to trade well and has a good outlook

•    Net debt reduced by £3,510,000 to £317,000 at 30 June 2003. Subsequently 
     repaid

•    Maintained interim dividend of 0.12p

Commenting, Konrad Legg, chairman said:

'I am pleased to report good progress in implementing the strategy adopted at 
the end of last year and also sound trading at Gall Thomson.'


Contacts


Progressive Value Management Limited
Robert Legget                                                      020 7253 9104
Simon Toynbee

Chairman's Statement
I am pleased to report good progress in implementing the strategy adopted at the
end of last year and also sound trading at Gall Thomson, the specialised
couplings business.

Following the sale last year of the holding in Castings plc, all the remaining
listed investments were sold during the period. These disposals, together with
cash inflows from operations, enabled Lupus to reduce its borrowings from £3.8m
to £0.3m during the period. Since the period end the Group has repaid the net
debt.

Gall Thomson put in a very solid performance and its results are encouraging.
Lupus, through the activities of Gall Thomson, achieved an operating profit
before goodwill amortisation of £1,197,000, an increase of 18%, on turnover
slightly down on last year's first half owing to a number of project delays
associated with the Iraq war. The group profit before tax was only 6% higher at
£541,000 because of a £200,000 loss taken against book value in liquidating the
remaining investment portfolio. The Directors have declared an unchanged interim
dividend of 0.12p per share payable on 30 October 2003 to shareholders on the
register at the close of business on 10 October 2003.

Trading prospects for Gall Thomson remain good. The order profile is encouraging
and management are confident about the business flow and improved trading in the
current period.

We are in the process of making arrangements relating to our vacant London and
sub-let Tewkesbury leasehold properties and hope to finalise these in the near
future. In addition the work on rationalisation of our corporate entities is
continuing.

As shareholders are aware the final and most significant element in our strategy
to realise value for shareholders relates to the Gall Thomson business. We have
been pursuing a number of ways to achieve value, including the sale of that
business and the sale of the Company. We have made progress with several
alternatives and we have held detailed discussions with interested parties.
Since the announcement and adoption of the realisation strategy the share price
has increased significantly to reflect more closely the underlying value of the
assets. We intend to build on this progress and we expect to put forward
proposals in the current period. We will keep shareholders informed of
developments.

The positive outlook for Gall Thomson and the Group's ungeared balance sheet
lead us to view the future with  a high degree of confidence.


Konrad Legg
Chairman

26 September 2003


Group profit and loss account

                                                   Six months       Six months           Year
                                                        ended            ended          ended
                                                      30 June          30 June    31 December
                                                         2003             2002           2002
                                                  (unaudited)      (unaudited)      (audited)
                                                        £'000            £'000          £'000

Turnover                                                2,886            3,027          6,638

Operating profit
Continuing operations - excluding goodwill
amortisation                                            1,197            1,013            876
Goodwill amortisation                                   (370)            (370)          (741)

                                                          827              643            135

(Loss)/profit on disposal of fixed asset                (200)                -            213
investments
Income from investments                                     -               53            273
Amounts written off fixed asset investments                 -                -        (1,595)
Interest and similar items                               (86)            (184)          (387)

Profit/(loss) on ordinary activities before               541              512        (1,361)
taxation

Taxation                                                (273)            (236)          (151)

Profit/(loss) on ordinary activities after                268              276        (1,512)
taxation

Ordinary dividends                                      (207)            (205)        (1,058)
Retained profit/(loss)                                     61               71        (2,570)


Earnings/(loss) per share                               0.16p            0.16p        (0.89)p
Earnings before goodwill amortisation per               0.37p            0.38p        (0.45p)
share

Dividend per share                                      0.12p            0.12p          0.50p


Statement of total recognised gains and losses

There were no recognised gains and losses in each year other than the (loss) /
profit for the financial year.


Group Balance Sheet

                                                     At 30 June       At 30 June        At 31December
                                                           2003             2002                 2002
                                                    (unaudited)      (unaudited)            (audited)
                                                          £'000            £'000                £'000
                                                                          
    Fixed assets
    Intangible fixed assets                              11,792           12,533               12,161
    Tangible fixed assets                                   438              534                  463
    Investments                                               -            8,070                3,822
                                                         12,230           21,137               16,446

    Current assets
    Stock and work-in-progress                              186              215                  200
    Debtors                                               1,872            1,493                2,096
                                                          2,058            1,708                2,296

    Creditors: amounts falling due within one           (1,894)          (8,170)              (6,693)
    year

    Net current assets/(liabilities)                        164          (6,462)              (4,397)

    Total assets less current liabilities                12,394           14,675               12,049

    Creditors: amounts falling due after more              (84)             (78)                 (80)
    than one year

    Net assets                                           12,310           14,597               11,969

    Capital and reserves
    Share capital                                           864              852                  853
    Share premium                                         4,710            4,429                4,441
    Capital reserves                                     10,389           10,389               10,389
    Revenue reserve                                     (3,653)          (1,073)              (3,714)

    Equity shareholders' funds                           12,310           14,597               11,969


Group Cash Flow Statement

                                                Six months        Six months                   Year
                                                     ended             ended                  ended
                                              30 June 2003      30 June 2002       31 December 2002
                                               (unaudited)       (unaudited)              (audited)                   
                                                     £'000             £'000                  £'000

Operating activities
Net cash inflow from operating activities              479             1,176                  2,112

Return on investments and servicing of
finance
Interest received                                       70                80                    155
Interest paid                                        (185)             (258)                  (531)
Dividends received                                      56                53                    258
                                                      (59)             (125)                  (118)

Taxation
UK corporation tax recovered/(paid)                    181             (128)                  (544)

Capital expenditure and financial
investment
Sale of tangible fixed assets                            4                 -                      -
Purchase of tangible fixed assets                      (5)               (6)                   (16)
Sale of fixed asset investments                      3,621                 -                  3,051
Purchase of fixed asset investments                      -             (886)                (1,070)
                                                     3,620             (892)                  1,965

Equity dividends paid                                (852)             (426)                  (630)

Net cash inflow/(outflow) before financing           3,369             (395)                  2,785

Financing
Issue of shares net of costs                           141                12                     25

Increase/(decrease) in cash                          3,510             (383)                  2,810


Reconciliation of net cash flow to movement in net debt

                                              Six months        Six months                  Year
                                                    ended            ended                 ended
                                             30 June 2003     30 June 2002      31 December 2002
                                              (unaudited)      (unaudited)             (audited)
                                                    £'000            £'000                 £'000

Increase/(decrease) in cash                         3,510            (383)                 2,810
Change in net debt from cash flows                  3,510            (383)                 2,810
Net debt at the beginning of the period           (3,827)          (6,637)               (6,637)
Net debt at the end of the period                   (317)          (7,020)               (3,827)


Reconciliation of operating profit to net cash flows
from operating activities

                                             Six months         Six months                   Year
                                                  ended              ended                  ended                     
                                           30 June 2003       30 June 2002       31 December 2002                  
                                            (unaudited)        (unaudited)              (audited)
                                                  £'000              £'000                  £'000

Operating profit                                    827                643                    135
Depreciation                                         26                 37                     74
Amortisation of goodwill                            370                370                    741
Movement in stock                                    14               (43)                   (28)
Movement in debtors                                 133                527                    115
Movement in creditors                             (891)              (358)                  1,031
Provision against carrying value of                   -                  -                     44
fixed assets

Net cash flow from operating                        479              1,176                  2,112
activities


Notes

These financial statements are not the Company's statutory accounts for the
purposes of Section 240 of the Companies Act 1985. They are unaudited. The
Company's statutory accounts for year ended 31 December 2002 received an
unqualified audit report and have been filed with the registrar of companies at
Companies House.

The interim financial information has been prepared on the basis of the
accounting policies set out in the Report and Accounts of the Group for the year
ended 31 December 2002.

The interim report will be sent to shareholders and copies will be made
available to the public at the registered office of the Company.

The Directors have declared an interim dividend of 0.12p per share (2002: 0.12p)
to shareholders on the register at the close of business on 10 October 2003,
which will be paid on 30 October 2003.

Earnings per share figures are based on the weighted average of 170,652,919
ordinary shares in issue during the half-year ended 30 June 2003 (half-year to
30 June 2002: 170,182,258 shares; year to 31 December 2002: 170,302,702 shares).
The number of shares in issue at 30 June 2003 was 172,873,085.

The Directors approved the interim report on 25 September 2003.


Registered office:
Crusader House
145-157 St John Street
London EC1V 4RU



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