Final Results

Lawrence PLC
13 September 2001


HIGHLIGHTS

-- Sales growth of 20% to £31.9 million

-- Profit before tax, exceptional and non-recurring items, amortisation of
   goodwill and minority interest up 15% to £4.1million

-- Earnings per share (before amortisation and exceptional and non-recurring
   items) up 19% to 37.6p

-- Final dividend of 9.7p per share, making 12.5p per share for the full year,
   up 10%

-- Write down provision of £475,437 on holding of Amberley Group plc

-- Current year started well



CHAIRMAN'S STATEMENT

I am pleased to report another year of record results. Profit before tax,
exceptional and non-recurring items, amortisation of goodwill and minority
interest rose 15% to £4.1million on turnover of £32 million, 20% above the
level of last year. Earnings per share increased 19% to 37.6p before
amortisation and exceptional and non-recurring items. Approval will be sought
at the Annual General Meeting for a payment of a final dividend of 9.7p net
per ordinary share, making a total of 12.5p net per share for the year (2000:
11.4p net). The dividend will be paid on 2nd November 2001 to shareholders on
the register on 21st September 2001.

ECO GROUP: This business, which incorporates ECO Animal Health Limited and was
formed only eight years ago, has already become established as an
internationally respected, well-known supplier of top quality therapeutic
drugs and remedies to the food farming industry world-wide. Turnover increased
significantly even though we continue to wait for European drug registrations
on some of our new products to be granted. These delays in obtaining such
registrations seem inevitable as the licensing authorities around the world
continue to demand ever more stringent testing. We are confident that the most
important new registrations will be obtained in the coming months and will
significantly increase ECO Group's turnover. The Group generated profit before
tax in excess of £1 million for the first time last year and continues to
invest heavily in its registration department through additional personnel and
trials to procure many more valuable drug registrations in Europe and the USA.
While the meat production industry may not be as profitable as their owners
would wish, their continuing dependence on drugs and remedies ensures an
increasing demand for our range of economically priced products. For some
years I have been telling shareholders about Aivlosin, our patented macrolide
antibiotic which has become established, following registration, in a number
of countries. It is a world-beating therapeutic drug for mycoplasma and a
saviour in respiratory disease, dysentery, illeitis and other indications in
pigs and poultry. The majority of our investment to date in registering this
unique antibiotic has focused on the establishment of a Maximum Safe Residue
Level (MRL) which has become mandatory for European and North American
registration. We have been working on clinical trials and with experts in the
veterinarian profession for eight years making steady progress to establish
and prove an acceptable MRL for Aivlosin. I am delighted to report that this
essential approval was obtained in July and represents probably the final
major hurdle in the European registration of this product. Aivlosin is many
times more effective against bacteria strains than conventional treatments and
it does not cross over into human use antibiotic spectrums. It is expected
that full registrations for Aivlosin will be obtained next year and increases
in sales and group profits will follow. I am grateful to our shareholders for
waiting so patiently for this result, I will keep you advised of progress.

In addition to Aivlosin, our progress in obtaining world-wide registrations
for Ecomectin, our brand endectocide, has been very good in some countries and
disappointingly slow in others. There seems to be, even within Europe, major
differences in the requirements of the national registration authorities which
has nevertheless resulted in registrations for several forms of our Ecomectin
in Ireland, Germany, Denmark, Belgium and Austria over the past year. Much
work remains to be done to complete our registrations in the other major
countries which represent very significant sales potential. Ivermectin, the
generic form of Ecomectin, is the largest selling animal health remedy product
world-wide by a substantial margin. The estimated market for Ivermectin is now
well over $1 billion a year and until recently was just about exclusively
supplied under patent protection by one company.

Shareholders should be aware that ECO Animal Health Limited develops and
improves known molecules but does not do research into non established or
speculative molecules and remedies and is not at risk of being denied a
registration. It is simply a question of 'when' - not 'if'. ECO Group has a
highly motivated world-wide network of distributors acting exclusively for
your company and the prospects of ECO Group look very exciting indeed. Our
website at www.ecoanimalhealth.com is an informative and much visited site and
explains the product range with newsletters and useful information.

AGIL: Agil which supplies animal feed additives for biosecurity and growth
performance to the food farming industry, using natural minerals and organic
acids, has been in the 'neutroceutical' business for much longer than that
word has existed! Agil has for some years been promoting the use of its
natural products in opposition to the use of antibiotic growth promoters, many
of which have now been banned in Europe. While many of our supermarkets source
their meat products by way of prepared meals, etc., from meat producers in
Thailand, Indonesia, Brazil and other countries not yet subjected to stringent
restrictions on the use of antibiotics, there remains a significant
opportunity for Agil to participate in their inevitable switch to
neutroceuticals in the future. Agil has led the way in this expanding field
with its unique delivery system for our salmonella controlling products,
Salkil and Bact-a-cid and its performance enhancing product Prefect. Sorbatox,
our mycotoxin absorber, is benefiting from the realisation by so many feed
mills, in more humid climates, that there is a solution to the problem of
deadly fungal type toxins ever present in their local feed stuffs. Agil
exports more than 95% of its sales and has had to learn to live with the
strong value of Sterling, particularly in Europe which used to be our
traditional market. While the whole world has gone 'crazy' for neutroceuticals
- not only in animal health but also in human health, the awareness and
popularity of this kind of treatment will undoubtedly help the credibility of
Agil's range. We are the established market leader with proven performance and
as innovators of the next generations of new natural products, the future
looks bright for Agil. There is detailed information about Agil's product
range, trial results, updates on achievements and our worldwide distribution
network on the internet at www.agil.com.

BLACKFAST: The broadening of our sales efforts outside the United Kingdom has
proven to have been the correct way forward. Blackfast Chemicals increased its
proportion of exports to nearly 47% of total sales. The continued contraction
of the British engineering industry has been well documented with the
disappearance of so many household names. As a result of reduced consumption
and customer closures, sales of Blackfast products in the U.K. have declined
by almost 20% compared with their peak in 1996, while since then our market
share has grown. Blackfast Chemicals' unique room temperature blacking system
is recognised as the world-wide market leader in the field and growth
prospects in this division remain strong. Our new aluminium blacking system
continues to improve its performance and in the coming year should start to
become a real contributor to profits. Please visit our website on
www.blackfast.com which gives an illustrated and lively presentation of this
specialised product range.

INTERPET: The continuous development and introduction of new branded products
under the Interpet, Blagdon, PetLove and Mikki brands underpin Interpet's
growth. The British love of animals and their gardens will always ensure the
demand for quality branded products, as the core consumer groups become more
sophisticated and are not tempted by cheap copies. The expansion of the Water
Gardening market continues to gain momentum - (how many people do you know
with a water feature or pond in their garden?) and with the technically
excellent products available exclusively to us from our new manufacturing
links, Interpet is well-placed to take advantage of this trend. Our publishing
business continues to expand both domestically and overseas while our American
subsidiary had a satisfactory year consolidating its product range and
recruiting additional new management to cope with our rapid expansion
programme.

INVESTMENTS: We have had to make a major write down provision of our
investment in Amberley Group plc in which we own approximately 1.8 million
shares, the majority of which we received in 1993 when we sold our performance
minerals businesses. Since then, we have fortunately realised £1m through the
sale of Amberley shares. It is extremely disappointing to see the value of the
remaining shares decline so very much. Following their profit warning given in
January 2001, following the discovery of irregularities in that company, there
was an approach made by the management to buy the company which did not
happen. Instead, there was a boardroom coup led by one of the non-executive
directors which resulted in the resignation of the executive directors and the
Chairman. I refused to leave the Board voluntarily being the only director
with knowledge both technical and commercial of the businesses; I was
subsequently removed without reason. The trading results of Amberley Group plc
published only a few weeks ago have been very poor. I hope that value can be
restored to those good businesses within Amberley under the current direction
and as participating and knowledgeable investors we would be prepared to help
in the turnaround of the company.

COMPANY VALUATION: Last year I commented on the listed 'small company'
syndrome which continues to disadvantage us. In November 2000 we made an
announcement to the London Stock Exchange that an approach had been made to
the company by management which might or might not have led to a bid at a
share price of at least £4; as of today, discussions are no longer continuing,
although the management continues to explore all routes available for the
optimisation of shareholder value. The apathy shown towards small companies by
investors during the summer of last year and which continues today, prompted
us to seek an exit at a fair price for our shareholders who may wish to
realise their investment while a truly liquid market for our shares does not
actually exit. For example, a sale of only 500 to 2,000 shares can cause our
price to fall by between 5 and 25 pence as a result of the lack of liquidity
for our stock. As I mentioned in my statement last year, small companies are
considered to be those under £500 million market capitalisation and it is hard
to see how we can get to that size without many acquisitions or mergers, some
of which are bound to be highly risky. With the concessions made by the
Chancellor to investors in AIM companies, I would hope that there still is a
future for companies like ours which are well managed and have consistently
produced solid performances.

EMPLOYEES: We employ a total 175 people at our offices, warehouse and
factories and I would like to express my thanks to them and everyone
associated with the company without whose hard work and loyalty we could not
continue to flourish.

OUTLOOK: Creating and realising shareholder value is our main objective and
shall continue to be as the company moves forward into what we are told will
be an uncertain time for international economies and financial markets. Our
growth plans include a possible acquisition which I hope to be in a position
to report on in the late autumn. We remain focused and optimistic, confident
in the knowledge that the inherent long term growth potential of our
mainstream veterinary pharmaceutical products will overcome the short-term
downward pressure of economic cycles.



Peter Lawrence

Chairman

12 September 2001



CONSOLIDATED PROFIT & LOSS ACCOUNT
                                              Note      2001          2000
                                                          £             £
Turnover                                             31,908,503    26,568,886

Cost of sales                                       (19,418,295)  (16,164,433)

Gross profit                                         12,490,208    10,404,453

Net operating expenses                               (8,333,635)   (6,710,554)

Operating profit                                      4,156,573     3,693,899

Share of profits of associate                          40,000        40,000
Income from listed fixed asset investments             18,622        30,751
Amounts written off investments                       (475,349)         -
Exceptional item: loss on sale of fixed asset   3         -         (100,295)
Net interest                                          (280,212)     (193,587)

Profit on ordinary activities before taxation         3,459,634     3,470,768

Tax on profit on ordinary activities                  (852,414)    (1,107,710)

Profit on ordinary activities after taxation          2,607,220     2,363,058

Minority interest - equity                            (549,822)     (237,626)

Profit for the financial year                         2,057,398     2,125,432

Dividends - equity                                    (895,040)     (815,585)

Retained profit transferred to reserves               1,162,358     1,309,847

Earnings per share                              4      28.73p        29.87p

Diluted earnings per share                      4      28.34p        29.40p

Adjusted earnings per share                     4      37.60p        31.70p



CONSOLIDATED BALANCE SHEET AT 31 MARCH 2001
                                                 Note     2001         2000
                                                           £            £
Fixed assets
Intangible assets                                      2,962,274    2,495,074
Tangible assets                                        1,661,691    1,511,745
Investments                                            1,107,774    1,583,671
Investment in associate                                1,080,178    1,052,178
                                                       6,811,917    6,642,668
Current assets
Stocks                                                 8,086,322    7,248,771
Debtors                                                11,340,519   9,565,183
Cash at bank and in hand                                400,710      309,754
                                                       19,827,551   17,123,708
Creditors: amounts falling due within one year        (11,695,573) (10,543,599)
Net current assets                                     8,131,978    6,580,109
Total assets less current liabilities                  14,943,895   13,222,777
Creditors: amounts falling due after more than        (1,176,815)  (1,152,651)
one year
                                                       13,767,080   12,070,126
Capital and reserves
Called up share capital                                 716,032      716,032
Share premium account                                  3,246,228    3,246,228
Capital redemption reserve                              105,829      105,829
Profit and loss account                                9,617,016    8,446,186
Shareholders' funds - equity                           13,685,105   12,514,275
Minority interest - equity                               81,975     (444,149)
                                                       13,767,080   12,070,126



CONSOLIDATED CASH FLOW STATEMENT
                                                   Note    2001        2000
                                                             £           £

Net cash inflow from operating activities           5    2,049,622   3,034,340
Returns on investments and servicing of finance
Interest received                                         64,869      56,817

Interest paid                                            (345,081)   (250,404)
Dividends received                                        18,622      30,751
Net cash outflow from returns on investments and         (261,590)   (162,836)
servicing of finance
Taxation                                                 (998,963)  (1,493,274)

Capital expenditure and financial investment
Purchase of intangible fixed assets                      (786,270)   (818,402)
Purchase of tangible fixed assets                        (447,699)   (374,853)
Purchase of investments                                      -       (177,446)
Sale of tangible fixed assets                             27,334      418,091
Net cash outflow from capital expenditure and           (1,206,635)  (952,610)
financial investment
Acquisitions and disposals                                   -
Purchase of businesses                                       -      (1,170,821)
Net cash outflow from acquisitions                           -      (1,170,821)
Equity dividends paid                                    (815,658)   (730,242)
Financing
Issue of shares                                              -        98,000
Increase in borrowing                               6      2,405      760,568
Net cash inflow from financing                             2,405      858,568
Decrease in cash                                    5   (1,230,819)  (616,875)



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                                          2001        2000
                                                            £           £

Profit for the financial period                         1,162,358   1,309,847
Exchange differences                                      8,472     (50,393)
Total recognised gains and losses for the period        1,170,830   1,259,454



NOTES


 1. COST OF SALES AND OTHER OPERATING INCOME

                                Continuing operations      Continuing operations
                                         2001                       2000
                                          £                          £

    Cost of sales                     19,418,295                 16,164,433

    Net operating expenses
    Distribution costs                 453,298                    372,736
    Administrative expenses           8,426,005                  6,830,894
    Other operating income            (545,668)                  (493,076)
                                      8,333,635                  6,710,554

    Administrative expenses include £105,000 after tax of non recurring
    business relocation expenses.


 2. PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

    The profit on ordinary activities before taxation is stated after:

                                                            2001          2000
                                                              £             £

    Hire of plant and machinery                            27,197        23,886
    Gain on foreign currency transactions                (287,281)     (101,037)
    Depreciation - owned assets                            275,593       242,184
    Amortisation of intangible assets                      319,070       194,062
    Profit/(loss) on disposal of fixed assets              5,174       (103,765)
    Auditors' remuneration
    - audit services                                       38,000        38,000
    - non audit services                                   34,920        37,872


 3. EXCEPTIONAL ITEM

    The loss on disposal of fixed assets in the prior year includes an
    exceptional loss of £100,295 incurred on the sale of a freehold property
    from the discontinued Petworld business.




 4. EARNINGS PER SHARE

    The calculation of earnings per share is based upon the profit for the
    financial year dividend by the weighted average number of ordinary shares
    in issue during the year.

    The calculation of diluted earnings per share is based on the basic
    earnings per share, adjusted to allow for the issue of shares and the post
    tax effect of dividends, on the assumed conversion of all dilutive options
    and other dilutive potential ordinary shares.

                         2001       2001      2001      2000       2000    2000
                     Earnings   weighted       Per  Earnings   Weighted     Per
                                 average     share              average   share
                               number of    amount            number of  amount
                                  shares                         shares    
                        £'000       '000     pence     £'000       '000   pence 

Basic earnings per share

    Earnings            2,057     7,160      28.73     2,125      7,115   29.87
    attributable to
    ordinary shareholders

    Dilutive effect of securities

    Options                -        96      (0.39)         -        113   (0.47)

                       2,057     7,256       28.34     2,125      7,228   29.40



    An adjusted earnings per share has also been presented, based on profit
    after tax excluding amortisation, exceptional and non-recurring items.
    This basis has been used to show the underlying performance of the
    continuing business and the directors consider that this gives a useful
    additional indicator.

                       2001       2001     2001       2000       2000       2000
                   Earnings   weighted      Per   Earnings   Weighted        Per
                               average    share               average      share
                             number of   amount             number of     amount
                                shares                         shares
                      £'000       '000    pence      £'000       '000      pence
    Basic earnings 
    per share

    Earnings          2,057      7,160    28.73      2,125      7,115      29.87
    attributable to
    ordinary
    shareholders

    Adjustments

    Goodwill             56                             30
    amortisation

    Amounts written     475                              -
    off investments

    Loss on sale of       -                            100
    fixed assets

    Non-recurring       105                              -
    business relocation
    expenses

    Adjusted basic    2,693      7,160    37.60      2,255      7,115      31.70
    earnings per share


 5. NET CASH OUTFLOW FROM OPERATING ACTIVITIES
                                                          2001           2000
                                                           £              £

    Operating profit                                   4,156,573      3,693,899
    Exchange loss                                       (4,612)           -
    Depreciation                                        275,593        242,184
    Amortisation charge                                 319,070        194,062
    Profit on disposal of fixed assets                  (5,174)        (2,864)
    Increase in stocks                                 (837,551)      (597,253)
    Increase in debtors                               (1,775,336)    (1,171,809)
    (Decrease)/increase in creditors                    (78,941)       676,121
    Net cash inflow from operating activities          2,049,622      3,034,340


 6. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                       2001           2000
                                                        £              £

Decrease in cash in the year                       (1,230,819)     (616,875)
Increase in debt                                     (2,405)       (760,568)
Change in net debt resulting from cash flows       (1,233,224)    (1,377,443)
Effect of foreign exchange changes                   (10,615)       (50,393)
Movement in net debt in the year                   (1,243,839)    (1,427,836)
Net debt at 1 April 2000                           (3,806,362)    (2,378,526)
Net debt at 31 March 2001                          (5,050,201)    (3,806,362)




 7. REPORT & FINANCIAL STATEMENTS

 The financial information set out in this preliminary announcement
 does not constitute statutory accounts as defined in section 240 of
 the Companies Act 1985.

 The summarised balance sheet at 31 March 2001 and the summarised
 profit and loss account, summarised cash flow statement and associated
 notes for the year then ended have been extracted from the Group's
 2001 statutory financial statements upon which the auditors opinion is
 unqualified and does not include any statement under section 237 of
 the Companies Act 1985.

 Copies of the financial statements for the Group for the year ended 31
 March 2001 for a period of one month from the offices of Charles
 Stanley & Company Limited, 25 Luke Street, London EC2A 4AR.