Final Results

Brooke Industrial Holdings PLC
2 March 2001

                        BROOKE INDUSTRIAL HOLDINGS PLC


           Preliminary results for the year ended 30 September 2000

Brooke Industrial Holdings plc, the Sheffield-based engineering Group with
operations throughout the UK and in South Africa, Germany and the United
States, announces its preliminary results for the year ended 30 September
2000:

                                  HIGHLIGHTS


  * Turnover up 22% to £33.8m (1999: £27.8m)

  * Profit before interest and taxation £246,000 (1999:loss £682,000)

  * Loss per share (14.2p) (1999: (16.3p))

  * Reorganisation of cutting tools complete

  * Enhanced order book

  * Board changes


Commenting on prospects, Michael Arnold, Chairman of Brooke Industrial
Holdings plc, said:

'Trading conditions remain difficult, although order input is now running at
an enhanced level. The Euro has strengthened against the pound, but there
remain uncertainties in the world economic environment. Your Board has much to
do to restore the Group to full health, but faces the task with
determination.'


For further information please contact

Michael Arnold, Brooke Industrial Holdings plc          0114 249 4222

Paul Gill, Brooke Industrial Holdings plc               0114 249 4222



                             CHAIRMAN'S STATEMENT



As previously announced, the Open Offer of new ordinary shares on 6 September
2000 resulted in the issue of an additional 1,748,786 ordinary shares in your
Company to raise £793,000 after expenses. As a consequence Jourdan plc, as
underwriters to the issue, increased their shareholding to 29.97% of the
issued share capital.

Mr David Abell, the executive Chairman of Jourdan plc, was appointed as a
non-executive Director of your Company on 6 September 2000. On 30 October 2000
John Dashper, Chairman since 1994, and David Owen and Chris Boddington, his
non-executive colleagues resigned. On the same day I was appointed as
non-executive Chairman and Bob Morris, the Group Managing Director of Jourdan
plc, a non-executive Director. I am a non-executive Director of Jourdan plc
and biographical details of each of the new directors are included in the
Report of the Directors. These appointments are aimed at assisting the
executive Directors and senior management to manage the business through the
next phase of its development.

The year covered by this report has again been one of continuing activity,
during which the divisional restructuring programme embarked upon during 1999
was completed. The acquisition of Somta Tools Pty Limited in June 1999 enabled
the Group to enhance its product portfolio across a fuller range of high speed
steel cutting tools and open to it a broader global market. The
rationalisation of the Cutting Tool Division has been designed to maximise the
benefits that the acquisition of Somta created and this is translating into
increased opportunities and improved performance.

Group results

The Group is beginning to realise the benefits of its policies and the profit,
before interest and taxation, for the year was £246,000 (1999: Loss £682,000).
This profit was achieved after exceptional and non-recurring costs of £279,000
(1999: £660,000). These costs in the year to 30 September 2000 relate to the
re-organisation of the Cutting Tools Division.

The extent of the re-organisation in the Group has given rise to other one off
costs in excess of those directly relating to Cutting Tools. The cost of the
changes to the Board structure amounted to £107,000. Your new Board has also
taken the opportunity to review on-going inventory lines and their valuation,
and has made additional provisions of £460,000. Both of these items have been
fully provided in the year.

Borrowings

Net Group borrowings at 30 September 2000 were £14.0m an increase of £0.9m
over the previous financial year end. The interest burden, therefrom, gives
rise to a loss before taxation of £838,000 (1999: £1,323,000). The new Board
is actively seeking to reduce the level of borrowings through a programme of
working capital reduction and disposal of identified non-core assets and, in
the interim, additional banking facilities have been obtained in order to meet
the Group's short term peak requirements.



Dividend

The Group's full expectations for the year were not achieved as the UK
economy, in particular, remained very sluggish against a background of a weak
Euro. Although the Board is encouraged by the prospects for growth, in view of
the working capital requirements to support this growth, it does not believe
it appropriate to pay a final dividend (1999: 5.25p).



People

A skilled and motivated workforce is essential to the on-going success of
Brooke. The Group now has 1,044 employees and we thank all of them for their
unstinting efforts throughout the year.

Current trading and prospects

Trading conditions remain difficult, although order input is now running at an
enhanced level. The Euro has strengthened against the pound, but there remain
uncertainties in the world economic environment. Your Board has much to do to
restore the Group to full health, but faces the task with determination.



M. J. Arnold

Chairman

1 March 2001


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2000

              Note Results Exceptional  2000    Results Exceptional   1999 
                    before     Costs             before     Costs               
                  exceptional                   exceptional                     
                    costs                         costs                       
                    £'000's   £'000's  £'000's   £'000's   £'000's   £'000's 
                                                                              
  Turnover       2                                                            
  Continuing         33,763        -    33,763    27,775        -     27,775  
  operations                                                                  
  Cost of           (24,772)       -   (24,772)  (21,218)       -    (21,218) 
  sales                                                                       
  Gross profit        8,991        -     8,991     6,557        -      6,557  
  Distribution       (6,150)       -    (6,150)   (4,805)       -     (4,805) 
  costs                                                                       
  Administratio      (2,504)    (279)   (2,783)   (1,774)    (660)    (2,434) 
  n expenses                                                                  
  Operating             337     (279)       58       (22)    (660)      (682) 
  Profit/                                                                     
  (Loss)                                                                      
  Profit on             188        -       188         -        -          -  
  disposal of                                                                 
  fixed assets                                                                
  Profit / (loss)       525     (279)      246       (22)    (660)      (682) 
  before interest                                                             
  and taxation                                                                
  Interest payable   (1,084)       -    (1,084)     (641)       -       (641) 
  and similar                                                                 
  charges                                                                     
  Loss on ordinary     (559)    (279)     (838)     (663)    (660)    (1,323) 
  activities                                                                  
  before taxation                                                             
  Taxation             (262)       -      (262)       31       31         62  
  Loss on ordinary     (821)    (279)   (1,100)     (632)    (629)    (1,261) 
  activities after                                                            
  taxation                                                                    
  Minority                -        -         -        17        -         17  
  interest                                                                    
  Loss                 (821)    (279)   (1,100)     (615)    (629)    (1,244) 
  attributable to                                                             
  members of                                                                  
  Brooke                                                                      
  Industrial                                                                  
  Holdings plc                                                                
  Dividend                -        -         -      (400)       -       (400) 
  Retained             (821)    (279)   (1,100)   (1,015)    (629)    (1,644) 
  deficit for                                                                 
  the period                                                                  
  Basic loss     3   (10.6p)   (3.6p)   (14.2p)    (8.1p)   (8.2p)    (16.3p) 
  per share                                                                   
  Diluted loss   3   (10.6p)   (3.6p)   (14.2p)    (8.0p)   (8.2p)    (16.2p) 
  per share                                                                   
                 


CONSOLIDATED BALANCE SHEET
as at 30 September 2000
                                                            2000      1999
                                                           £'000's   £'000's
 Fixed Assets
 Intangible assets - goodwill                                  592         -
 Tangible assets                                             9,076    10,028
                                                             9,668    10,028
 Current Assets
 Stocks                                                     10,286     9,777
 Debtors                                                     9,394     8,974
 Cash at bank and in hand                                      136       541
                                                            19,816    19,292
 Creditors: amounts falling due within one year            (16,233)  (14,855)
 Net current assets                                          3,583     4,437
 Total assets less current liabilities                      13,251    14,465
 Creditors: amounts falling due after more than one year    (4,722)   (5,903)
 Provisions for liabilities and charges                       (737)     (244)
 Net Assets                                                  7,792     8,318
 Capital and reserves
 Called up share capital                                     4,687     3,812
 Share premium account                                       3,785     3,867
 Revaluation reserve                                           274       405
 Profit and loss account                                      (954)      234
 Equity shareholders' funds                                  7,792     8,318



CONSOLIDATED CASH FLOW STATEMENT
                                                           2000         1999
                                                   Note   £'000's      £'000's

  Cash inflow/ (outflow) from operating activities    4      667         (172)
  Returns on investments and servicing of finance     5   (1,122)        (430)
  Taxation                                                  (236)         (46)
  Capital expenditure                                 5      (93)      (2,640)
  Acquisitions and disposals                                (474)      (2,748)
  Equity dividend paid                                      (267)        (400)
  Net cash outflow before financing                       (1,525)      (6,436)
  Financing                                           5    1,237        4,716
  Decrease in cash in the year                              (288)      (1,720)

Reconciliation of net cash flow to movement in net debt

  Decrease in cash in the year                              (288)      (1,720)
  Cashinflow from increase in debt and lease finance        (423)      (4,127)
  Change in net debt resulting from cash flows              (711)      (5,847)
  Net debt acquired with subsidiary                            -         (123)
  New finance leases                                        (110)        (589)
  Loan notes issued                                            -       (2,000)
  Exchange differences                                      (131)          10
  Movement in net debt in the year                          (952)      (8,549)
  Net debt at beginning of year                          (13,041)      (4,492)
  Net debt at end of year                                (13,993)     (13,041)


Notes to the preliminary announcement

For the year ended 30 September 2000

 1. The financial information set out above does not constitute the Company's
    statutory accounts for the year ended 30 September 2000 or 1999 but is
    derived from those accounts. Statutory accounts for 1999 have been
    delivered to the registrar of companies, whereas those for 2000 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 a statement under section 237(2) or (3) of the Companies Act
    1985.

2 Turnover is analysed as:                                  2000           1999
  Turnover                                                 £'000          £'000
  UK                                                      17,483         17,814
  Export                                                  16,280          9,961
                                                          33,763         27,775

3 Loss per share                                            2000           1999
                                                           £'000          £'000
  Loss for the financial year                             (1,100)        (1,244)
                                                              No             No
  Basic weighted average number of shares              7,748,737      7,624,506
  Adjustment for share options                                 -         53,703
  Diluted weighted average number of shares            7,748,737      7,678,209
  Loss per share                                          (14.2p)        (16.3p)
  Diluted loss per share                                  (14.2p)        (16.2p)

4 Reconciliation of operating profit to cash inflow/(outflow) from operating
  activities
                                                            2000       1999
                                                          £'000's    £'000's
  Operating profit/(loss)                                      58       (682)
  Loss on disposal of tangible fixed assets                     -         20
  Depreciation charge                                       1,249      1,112
  Amortisation of goodwill                                     31          -
  Increase in stocks                                         (569)      (112)
  Increase in debtors                                        (515)       (92)
  Increase/(decrease) in creditors                            413       (418)
  Cash inflow/(outflow) from operating activities             667       (172)


  5 Analysis of cash flows
(I) Returns on investment and servicing of finance        2000       1999
                                                         £'000      £'000
    Interest paid                                       (1,053)      (354)
    Interest element of finance lease payments             (69)       (76)
                                                        (1,122)      (430)
(I) Capital expenditure
    Purchase of tangible fixed assets                     (580)    (2,661)
    Proceeds from sale of tangible fixed assets            487         21
                                                           (93)    (2,640)
(I) Financing
    Issue of shares                                        793          -
    Repayment of loans and other borrowings             (1,667)      (417)
    Receipts from loans and other borrowings             2,527      4,940
    Inception of finance leases                              -        589
    Capital element of finance lease payments             (416)      (396)
                                                         1,237      4,716

  6 Copies of this statement will be available for members of the public at the
    Company's Head Office, Shepcote Lane, Sheffield, S9 1QT.