Interim Results

Acal PLC
3 December 2001



FOR RELEASE                         7:00AM                    3 DECEMBER 2001



                                    ACAL plc


(Leading pan-European, value added distributor providing specialist design-in,
          sales and marketing services for international suppliers)


     Unaudited Interim Results for the Six months to 30th September 2001


                                                        2001      2000   Change

Turnover                                             £145.9m   £151.8m      -4%

Group earnings before interest, taxes and goodwill     £9.6m     £11.4     -15%

Profit before tax (pre goodwill amortisation)          £8.4m    £10.2m     -18%

Earnings per share (pre goodwill amortisation)         21.3p     25.9p     -18%

Dividend                                                6.1p      5.5p     +11%



  * Results broadly in line with statement in Annual Report in June

  * Slowdown felt predominantly in Electronic components

  * Significant growth in IT Parts Services

  * Value added focus has sustained gross margins

  * Interest cover 8 times

  * Dividend reflects confidence in underlying growth in the business



For further information:


John Curry Chairman                                            01483 544500

Jim Virdee Finance Director                                    01483 544500

Brian Coleman-Smith / Bruce Croxford                           020 7786 9600

Binns & Co. Public Relations



Notes to Editors:



1     The Acal Group is a leading European, value-added
distributor providing specialist design-in, sales and marketing services for
international suppliers in the fields of Electronic Components, Information
Technology Products, IT Parts Services and Industrial Controls.  Its
value-added philosophy and geographic coverage enables Acal to provide
specialist knowledge and support to customers on a pan-European basis.



2     Design-in is the process by which Acal's sales engineers
work with customers and suppliers to procure components which meet the
specific technical and performance needs of the customers.



3     Acal has operating companies in the UK, Netherlands,
Belgium, Germany, France, Italy, Scandinavia and the USA.




                               Chairman's Statement



Results



Results in the first half of the current year were broadly in line with my
statement in the Annual Report in June when I signalled the slow down in
orders, and the excess stock levels of some of our customers.  The difficult
market conditions have led to a decrease in year-on-year turnover from £151.8m
to £145.9m, down 4% on a like-for-like basis, for the first six months of this
year.  Group earnings before interest, taxes and goodwill amortisation reduced
15% from £11.4m to £9.6m producing profit before taxes and goodwill
amortisation of £8.4m (£10.2m).  After an effective tax charge of 34.2%
(34.5%), the underlying earnings per share before goodwill amortisation is
21.3p (25.9p).



Review of Operations



The economic slowdown which has been extensively reported has been felt across
all our divisions except IT Parts Services where we have seen overall growth
of approximately 30% year-on-year and double-digit growth in all countries in
which we operate.  We have been successful in developing our business with all
our key original equipment manufacturing brands, both in the PC and printer
industry.



The deterioration in sales has taken place predominantly in the Electronic
Components Division where turnover has fallen 14% compared to last year, with
Continental Europe being affected more than the UK.  Book to bill ratios in
this division are broadly in line with UK industry statistics at less than one
and will only return to above one when the destocking cycle is complete.  In
September at the Annual Electronic Component Federation Dinner we received the
award as the 'Customer Service Company of the Year' for our UK component
businesses, which indicates that we are well placed to benefit from any
increase in demand.



The very rapid growth in the IT Products Division we saw last year in
networking sales, and fibre channel products for storage area networks has
come to an end for the time being.  Furthermore, the disaster of 11th
September has caused some customers to be very cautious with regard to new
investment.  Nevertheless, our appointment in October as one of the
prestigious Cisco Distribution Partners, together with our continued
investment across Europe, will provide new impetus.



All divisions have reacted constructively to the changing market climate
without diverting us from our underlying growth strategy.  The actions taken,
coupled with our value-added focus, have sustained the average gross margin -
and at the same time produced at this point in the cycle, an acceptable level
of operating profit on sales of 6% and a high return on the capital employed
in the trading companies.



Net debt at £24.7m (£28.6m) is down by approximately £4m from the same time
last year and with interest cover close to eight times, the Group is not
highly geared.



Dividend



The Board has declared an interim dividend of 6.1p per share (5.5p), an
increase of 11% to be paid on 25th January 2002 to shareholders on the
register on 14th December 2001.  In spite of an earnings decrease, your Board
has increased the dividend to reflect our confidence in the long term
underlying growth in the business.



Prospects



The economic climate is more difficult than most people predicted six months
ago, and the trading outlook from a management perspective is indeed
challenging with few signs yet of renewed growth. I believe this phase of the
economic cycle is being well managed by our team which has worked hard to
minimise the impact of weakened markets, while making sure the key elements of
our long term strategy are not at risk.  We continue to invest in our sales
organisation across Europe as well as our IT systems and are well placed to
take advantage of opportunities that always arise in difficult times.


John Curry
3rd December 2001


                                   ACAL plc


                Unaudited Summary Profit and Loss Account for

                     Six Months ended 30th September 2001
                                                                   
                                                                           Year
                                                                       ended 31
                                           Six Months ended               March 
                                             30 September             (audited)
                                            2001      2000                 2001
                                           £'000     £'000                £'000


Turnover                                 145,881   151,758              325,329

Operating Profit
Excluding goodwill amortisation            8,806    10,363               22,900
Goodwill amortisation                    (1,232)   (1,235)              (2,471)
Group Operating Profit (excluding
associated undertakings)                   7,574     9,128               20,429
                                         
Group Share of Operating Profits of
Associated Undertakings                      847     1,044                2,196

                                             

Total Operating Profit (including
associated undertakings)
Excluding goodwill amortisation            9,654    11,408               25,098
Goodwill amortisation                    (1,233)   (1,236)              (2,473)
                                           8,421    10,172               22,625

Net interest payable - group             (1,127)   (1,116)              (2,358)
Net interest payable - associated          (105)      (49)                (172)
undertakings
Profit before Taxation:

Excluding goodwill amortisation            8,422    10,243               22,568

Goodwill amortisation                    (1,233)   (1,236)              (2,473)
Profit on Ordinary Activities before       7,189     9,007               20,095
Taxation
Tax on Profit on Ordinary
Activities:
            United Kingdom               (1,561)   (1,361)              (3,441)
            Overseas                     (1,112)   (1,855)              (3,782)
            Associated                     (205)     (319)                (619)
            undertakings
                                         (2,878)   (3,535)              (7,842)
Profit on Ordinary Activities
after Taxation
Excluding goodwill amortisation            5,544     6,708               14,726
Goodwill amortisation                    (1,233)   (1,236)              (2,473)
Profit Attributable to Ordinary            4,311     5,472               12,253
Shareholders

Dividends on Ordinary Shares             (1,588)   (1,427)              (4,294)

Retained Profit for the Period             2,723     4,045                7,959

Earnings per Share                         16.6p     21.2p                47.3p
Diluted Earnings per Share                 16.5p     21.0p                46.7p
Earnings per Share Excluding Goodwill
Amortisation
                                           21.3p     25.9p                56.8p

Dividend per share                          6.1p      5.5p                16.5p



                                     ACAL plc


                              Unaudited Balance Sheet

                              as at 30th September 2001


                                         At 30 September           
                                                                         At 31 
                                                                      (audited) 
                                                                          March
                                         2001         2000                 2001
                                        £'000        £'000                £'000
FIXED ASSETS

Intangible assets                      43,616       46,152               44,915
Tangible assets                        12,274        9,619               10,165
Investments                             4,466        3,685                3,995
                                       60,356       59,456               59,075
CURRENT ASSETS

Stocks                                 35,362       34,438               36,223
Debtors                                55,619       61,286               67,659
Cash at bank and in hand                7,303        4,505               12,651
                                       98,284      100,229              116,533
CREDITORS:
Amounts falling due within one year  (72,687)     (95,360)             (91,997)

NET CURRENT ASSETS                     25,597        4,869               24,536


TOTAL ASSETS LESS

CURRENT LIABILITIES                    85,953       64,325               83,611

CREDITORS:
Amounts falling due after more than  (15,669)        (895)             (15,669)
one year

PROVISIONS FOR LIABILITIES

AND CHARGES                           (4,102)      (4,565)              (4,353)

NET ASSETS                             66,182       58,865               63,589

CAPITAL AND RESERVES

Called up share capital                 1,302        1,298                1,301
Share premium account                  36,638       36,290               36,554
Revaluation reserve                       300          289                  301
Profit and loss account and other      27,942       20,988               25,433
reserves

                                       66,182       58,865               63,589




                                      ACAL plc



                     Unaudited Summary Cash flow Statement for

                         Six Months ended 30th September 2001




                                         Six Months ended 30      Year ended 31
                                              September         March (audited)
                                             2001       2000               2001

                                            £'000      £'000              £'000
OPERATING ACTIVITIES

Group operating profit                      7,574      9,128             20,429
Depreciation and amortisation               2,712      2,604              5,305
Increase in working capital               (6,015)    (9,563)            (4,851)

NET CASH INFLOW FROM OPERATING
ACTIVITIES                                  4,271      2,169             20,883
                                           

Dividends from associated undertaking           -          -                300
Net interest paid                         (1,127)    (1,116)            (2,358)
Equity dividends paid                     (2,862)    (2,362)            (3,794)
Tax paid                                  (2,975)    (2,228)            (6,850)
Net expenditure on tangible fixed assets
and investments                           (3,735)    (1,905)            (3,730)
                                          
Net cash flow from acquisitions and             -          -                222
disposals

NET CASH (OUTFLOW)/INFLOW BEFORE
FINANCING                                 (6,428)    (5,442)              4,673
                                          

Increase/(decrease) in debt and finance       125    (2,069)            (7,318)
leases
Issue of share capital                         85        713                980

NET DECREASE IN CASH                      (6,218)    (6,798)            (1,665)




Reconciliation of net cash flow to movement in net (debt)

NET DECREASE IN CASH                      (6,218)    (6,798)            (1,665)


Cash (inflow)/outflow from (increase)/
decrease in debt and lease financing        (125)      2,069              7,318
Translation differences                      (37)        106               (73)

                                             

MOVEMENT IN NET (DEBT)                    (6,380)    (4,623)              5,580


Net (debt) at beginning of the period    (18,358)   (23,938)           (23,938)

Net (debt) at end of the period          (24,738)   (28,561)           (18,358)




UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                    Six Months ended 30        Year ended 31
                                         September           March (audited)
                                       2001        2000                 2001
                                      £'000       £'000                £'000


Profit attributable to shareholders   4,311       5,472               12,253
Net (loss)/gain on currency           (215)          26                  568
translation
Total recognised gains and losses
for the financial period              4,096       5,498               12,821
                                      


NOTES:



 1. The financial information set out above does not constitute the company's
    statutory accounts for the year ended 31st March 2001, but is derived from
    those accounts.  Statutory accounts for 2001 have been delivered to the
    Registrar of Companies.  The auditors have reported on those accounts;
    their report was unqualified and did not contain a statement under section
    237 (2) or (3) of the Companies Act 1985.



 2. These interim results have been prepared in accordance with the accounting
    policies normally adopted by the company. During the period, Financial
    Reporting Standard No 18 on Accounting Policies and No 19 on Deferred Tax
    have been implemented. These had no material effect on the results for the
    period or the comparative periods.



 3. The interim dividend is payable on 25 January 2002 to shareholders on the
    register on 14 December 2001.



 4. Earnings per share for the half year to 30 September 2001 have been
    calculated on the profit attributable to ordinary shareholders of £
    4,311,000 using the weighted average number of ordinary shares in issue
    during the period.



 5. The company's interim report is being sent to shareholders by post.  Copies
    will also be available from:


2 Chancellor Court, Occam Road, Surrey Research Park, Guildford, Surrey, GU2
  7AH


         The interim results will not be advertised in any newspaper

Ends