Interim Results

Brooke Industrial Holdings PLC
28 June 2001



                        BROOKE INDUSTRIAL HOLDINGS PLC

            Interim results for the six months ended 31 March 2001

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 interim results for the six months ended 31 March 2001:


                                  HIGHLIGHTS



  * Turnover £17.4m (2000: £16.7m)
  * Exports up 12% to £8.8m (2000: £7.8m)
  * Operating profit £40,000 (2000: £17,000)
  * Cash inflow from operating activities £638,000 (2000: outflow £27,000)



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

'Uncertainties in world economies remain. Your Board does not underestimate
the key objectives it has set itself.'


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



I advised you in my Chairman's Statement dated 1 March 2001, accompanying the
results for the year to 30 September 2000, that 'trading conditions remain
difficult'.


Group Results

Turnover in the six months to 31 March 2001 was £17.4m (2000:£16.7m) and
operating profit was £40,000 (2000:£17,000). As a result of the persistent
downturn in the US economy your Board has concluded that it would be prudent,
at this time, to provide a further £125,000 against non-core stock lines. The
resultant pre tax loss at £497,000 (2000:Loss £320,000) only benefited from a
small profit on disposal of assets of £18,000 (2000:£188,000).

Average interest rates during the period were 5.91% (2000:5.67%), although the
recent reductions in UK borrowing rates are a welcome relief to UK
manufacturing.

The major Group re-organisation and rationalisation, which was a feature of
the last financial year, was completed during the period with the
consolidation of the two Perfast West Midland depots into a new flagship depot
in Birmingham and the closure of the loss making Warrington depot.



Borrowings

Group borrowings at 31 March 2001 were £14.4m, an increase of £0.4m over the
position at the end of the financial year. The Group has established working
capital reduction targets in the areas of overall stock investment and debtor
days. The benefit of this in the first half was offset by a necessary decrease
in creditors.

The Group is actively marketing identified non-core assets, which include two
freehold properties and three buildings on lease terms.

Following the half year end, the Group has met its obligations in repaying the
first part of additional banking facilities negotiated to meet short term peak
requirements.



Dividend

The Board, in view of the current high level of borrowings within the Group,
believes it is not appropriate to pay an interim dividend (2000:Nil).



Current Trading and Prospects

Uncertainties in world economies remain and there is little sign of a halt to
the decline in the UK manufacturing sector. This particularly slows any upturn
in Cutting Tools, the Group's principal division.

Your Board does not underestimate the key objectives it has set itself.



Michael J Arnold

Chairman

28 June 2001



UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 31
March 2001

                        Note  Six months       Six months         Year to
                                   to 31            to 31              30
                              March 2001       March 2000       September
                                                                     2000
                                   £'000            £'000           £'000
      Turnover              2
      Continuing                  17,356           16,660          33,763
      operations
      Cost of sales             (12,689)         (11,847)        (24,772)
      Gross profit                 4,667            4,813           8,991
      Distribution               (3,170)          (3,058)         (6,150)
      costs
      Administration             (1,457)          (1,738)         (2,783)
      expenses
      Operating Profit                40               17              58
      Profit on                       18              188             188
      disposal of fixed
      assets
      Profit before                   58              205             246
      interest and
      taxation
      Interest payable             (555)            (525)         (1,084)
      and similar
      charges
      Loss before                  (497)            (320)           (838)
      taxation
      Taxation              3       (70)               94           (262)
      Loss after                   (567)            (226)         (1,100)
      taxation
      Dividend                        -                -                -
      Retained deficit             (567)            (226)         (1,100)
      for the period


      Basic and diluted     4     (6.0p)           (3.0p)         (14.2p)
      loss per share



UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 31
March 2001


      Loss for the                 (567)            (226)         (1,100)
      period
      Exchange rate                (125)               12           (219)
      movements
      Total recognised             (692)            (214)         (1,319)
      losses relating
      to the period




UNAUDITED CONSOLIDATED BALANCE SHEET
as at 31 March 2001
                                         31           31              30
                                      March        March       September
                                       2001         2000            2000
                                      £'000        £'000           £'000
 Fixed Assets
 Intangible assets - goodwill           577            -             592
 Tangible assets                      8,605        9,476           9,076
                                      9,182        9,476           9,668
 Current Assets
 Stocks                               9,654        9,967          10,286
 Debtors                              9,385       10,280           9,394
 Cash at bank and in hand                69          260             136
                                     19,108       20,507          19,816
 Creditors: amounts falling          (15,307)    (18,045)        (16,233)
 due within one year
 Net current assets                   3,801        2,462           3,583
 Total assets less current           12,983       11,938          13,251
 liabilities
 Creditors: amounts falling          (5,193)       (3,611)         (4,722)
 due after more than one year
 Provisions for liabilities           (690)        (223)           (737)
 and charges
 Net assets                           7,100        8,104           7,792
 Capital and reserves
 Called up share capital              4,687        3,812           4,687
 Share premium account                3,785        3,867           3,785
 Revaluation reserve                    274          405             274
 Profit and loss account             (1,646)          20            (954)
 Equity shareholders' funds           7,100        8,104           7,792


UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the six months ended 31 March
2001

 Opening shareholders' funds          7,792        8,318          8,318
 Total recognised losses              (692)        (214)         (1,319)
 relating to the period
 Share issue                             -            -             793
 Closing shareholders' funds          7,100        8,104          7,792




UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 31
March 2001


                                       Six months to  Six months to   Year to 30
                                       31 March 2001  31 March 2000    September
                                                                           2000
                                  Note         £'000         £'000        £'000
 Cash inflow/ (outflow)              5           638          (27)          667
 from operating activities
 Returns on investments              6         (555)         (525)      (1,122)
 and servicing of finance
 Taxation                                      (384)         (327)        (236)
 Capital expenditure                 6         (109)         (168)         (93)
 Acquisitions and                                 -          (474)        (474)
 disposals
 Equity dividend paid                             -             -         (267)
 Net cash outflow before                       (410)       (1,521)      (1,525)
 financing
 Financing                           6           333         2,106        1,237
 Increase / (Decrease) in                       (77)           585        (288)
 cash in the period


Unaudited reconciliation of net cash flow to movement in net debt
for the six months ended 31
March 2001


 Increase / (Decrease) in                       (77)           585        (288)
 cash in the period
 Cash inflow from increase                     (390)       (2,014)        (423)
 in debt and lease finance
 Change in net debt                            (467)       (1,429)        (711)
 resulting from cash flows
 New finance leases                               -           (93)        (110)
 Exchange differences                             55          (41)        (131)
 Movement in net debt in                       (412)       (1,563)        (952)
 the period
 Net debt at beginning of                   (13,993)      (13,041)     (13,041)
 period
 Net debt at end of period                  (14,405)      (14,604)     (13,993)




NOTES TO THE UNAUDITED INTERIM STATEMENT
for the six months ended 31 March 2001

 1. The interim results to 31 March 2001 and 2000, which are unaudited, have
    been prepared in accordance with the accounting policies adopted in the
    accounts for the year to 30 September 2000. The comparative figures for
    the financial year ended 30 September 2000 are not the Company's statutory
    accounts for that financial year. Those accounts have been reported on by
    the Company's auditors and delivered to the Registrar of Companies. The
    report of the auditors was unqualified and did not contain a statement
    under section 237(2) or (3) of the Companies Act 1985. The financial
    information contained in the interim statement does not constitute
    statutory accounts within the meaning of section 240 of the Companies Act
    1985.

2 Turnover is analysed                Six months to Six months to   Year to 30
  as:                                 31 March 2001 31 March 2000    September
                                                                          2000
                                              £'000         £'000        £'000
  UK                                          8,560         8,821       17,483
  Export                                      8,796         7,839       16,280
                                             17,356        16,660       33,763


3 Taxation
  Taxation has been provided at the estimated effective rate for the full
  year.
  The tax charge for the period relates to overseas subsidiaries.


4 Loss per share
                                              £'000         £'000        £'000

  Loss for the financial                      (567)         (226)      (1,100)
  period
                                                 No            No           No
  Basic weighted average number of        9,373,292     7,624,506    7,748,737
  shares
  Loss per share                             (6.0p)        (3.0p)      (14.2p)


5 Reconciliation of operating profit to cash inflow/(outflow) from operating
  activities
                                      Six months to Six months to   Year to 30
                                      31 March 2001 31 March 2000    September
                                                                          2000
                                              £'000         £'000        £'000
  Operating profit/(loss)                        40            17           58
  Depreciation charge                           594           673        1,249
  Amortisation of                                15             -           31
  goodwill
  Decrease/(increase) in                        540         (190)        (569)
  stocks
  Increase in debtors                          (44)         (863)        (515)
  Increase/(decrease) in                      (507)           336          413
  creditors
  Cash inflow/(outflow)                         638          (27)          667
  from operating
  activities


6    Analysis of cash
     flows

(i)  Returns on investment             Six months to  Six months to   Year to 30
     and servicing of                  31 March 2001  31 March 2000    September
     finance                                                               2000
                                               £'000         £'000        £'000
     Interest paid                             (522)         (492)      (1,053)
     Interest element of                        (33)          (33)         (69)
     finance lease
     payments
                                               (555)         (525)      (1,122)
(ii) Capital expenditure
     Purchase of tangible                      (218)         (417)        (580)
     fixed assets
     Proceeds from sale of                       109           249          487
     tangible fixed assets
                                               (109)         (168)         (93)
(iii) Financing
     Issue of shares                              -             -          793
     Repayment of loans                        (234)            -       (1,667)
     and other borrowings
     Receipts from loans                         703         2,220        2,527
     and other borrowings
     Inception of finance                          -            93            -
     leases
     Capital element of                        (136)         (207)        (416)
     finance lease
     payments
                                                 333         2,106        1,237



 7. A copy of this report is being sent to all shareholders and copies will be
    made available to the public at the Company's Head Office, Shepcote Lane,
    Sheffield, S9 1QT.