Interim Results

Eleco PLC
12 March 2001


                                                                 12 March 2001


                                  ELECO PLC

                    INTERIM RESULTS FOR THE SIX MONTHS TO

                               31 DECEMBER 2000



CHAIRMAN'S STATEMENT

Despite the interruptions to our businesses in November and December, caused
by the fuel blockade and the unusually adverse weather conditions in that
period, the Group achieved an increase in turnover in the six months ended 31
December 2000 to £13,867,000 (1999: £12,335,000) of which £296,000 (1999: nil)
was attributed to acquisitions made in the period. Operating profits were
adversely affected by these special circumstances and amounted to £694,000
(1999: £737,000), including £102,000 from the newly acquired software systems
businesses. After deducting net interest payable of £127,000 (1999: £60,000),
profit on ordinary activities before tax for the six months was to £567,000
(1999: £677,000). Earnings per share amounted to 1.27p (1999: 1.45p).

The Board has declared an interim dividend of 0.35p per share (1999: 0.35p),
which will be payable on 9 May 2001 to shareholders on the register on 27
April 2001. The interim dividend is covered 3.5 times by earnings.

Net borrowings during the period rose by £2,171,000. This movement included £
713,000 in respect of acquisitions and £324,000 in respect of capital
expenditure. Stocks and work in progress and other working capital at the end
of the period had risen by more than the anticipated seasonal increase. This
was caused mainly by weather related disruptions to our customers' activities
in November and December and has since been largely reversed.


I am pleased to be able to report on a number of commercial and other
developments.

 1. We acquired MBA Computing and Forma Communications. MBA Computing is a
    leading developer of AutoCAD based detailed design software for the house
    building industry and includes among its clients a number of the leading
    UK house builders. Forma Communications is a web related design and
    software developer, serving the education field and the construction
    industry. Its clients include the Department of Education and Redbus
    Interhouse. It also produced the well received SpeedDeck Designer 2
    software.
 2. The Vitesse composite panel production line has been fully brought into use
    at SpeedDeck and the first contracts using this new product have been
    completed.
 3. Gang-Nail Systems has successfully introduced its Ecojoist flooring system,
    which is now backed up by design and engineering software developed by MBA
    Computing.
 4. We have entered into an agreement with Zeta-Tech Associates Inc. of New
    Jersey, USA for the distribution of Zeta-Tech's range of railway track
    maintenance software.



Trading Review

Building Systems

Bell & Webster Concrete, Gang-Nail Systems and SpeedDeck Building Systems were
all to a greater or lesser degree affected by the disruption to their
customers' businesses in November and December. Indications from their
customers are that the normal flow of business is returning and orders are
expected to improve. Stramit Industries made solid progress.

Our South African nail plate business continued to make excellent progress. In
contrast, our German nail plate business faired less well and performed
significantly below last year's level due mainly to price pressures in that
market.

Software Systems

MBA computing, which was acquired on 8 September 2000, has made a very
encouraging contribution in its first reporting period as a member of the
Group. Forma Communications was only acquired on 15 December 2000, had little
opportunity to do likewise but I am delighted by the way both businesses have
integrated into the Group and I fully expect them to be earnings enhancing in
the current year.

Rail & Marine

Our rail and marine businesses suffered from a continuing shortage of orders
particularly from the Ministry of Defence but there has been an increase in
activity in the last two months. We continue to seek to add to the Abtus range
of products. However, following its less than satisfactory performance over
the past year, we are conducting a comprehensive review of Abtus' operations.

Outlook

The investment, which has been put in place in the past two years, has
equipped Eleco to respond well to opportunities in its markets. Therefore, the
key to our performance for the remainder of the year will be the extent to
which our customers are able to make up the backlog of work that developed
during the final two months of last year.



John Ketteley

Executive Chairman

9 March 2001





Enquiries to:

John Ketteley, Executive Chairman                    01992 440 311

Eleco plc

David Dannhauser, Finance Director                    01992 440 311

Eleco plc

David Millham / Tarquin Edwards                    020 7256 5756

Millham Communications
                                   Eleco plc
                     Consolidated profit and loss account
                                                (Unaudited)           (Audited)
                                              Half year ended        Year ended
                                                31 December             30 June
                                                    2000      1999         2000
                                                   £'000     £'000        £'000
Turnover
      Continuing operations                       13,571    12,335       27,549
      Acquisitions (Note 1)                          296         -            -
                                                  13,867    12,335       27,549
Operating profit
      Continuing operations                          592       737        1,719
      Acquisitions (Note 1)                          102         -            -
                                                     694       737        1,719
Profit/(loss) on disposal of tangible assets           -         -          (53)
Profit on ordinary activities before interest        694       737        1,666
Net interest payable                                (127)      (60)        (147)
Profit on ordinary activities before tax             567       677        1,519
Tax on ordinary activities                           (61)     (115)        (131)
Profit on ordinary activities after tax              506       562        1,388
Dividend on ordinary shares (Note 3)                (143)     (135)        (387)
Retained profit                                      363       427        1,001
Dividends per share                                0.35p     0.35p        1.00p

Earnings per share (Note 4)                        1.27p     1.45p        3.59p
Diluted earnings per share (Note 5)                1.25p     1.43p        3.53p
                                     Notes

   1. On 8 September 2000, the group acquired the entire share capital of MBA
      Computing Limited. Goodwill on acquisition of £682,000 has been
      capitalised and included within fixed assets. £100,000 of the total
      consideration of £549,000 was settled by the issue of 333,330 new
      ordinary shares with the balance paid in cash.
      On 15 December 2000, the group acquired the entire share capital of Forma
      Communications Limited. Goodwill on acquistion of £699,000 has been
      capitalised and included within fixed assets. £546,000 of the total
      consideration of £681,000 was settled by the issue of 1,820,000 new
      ordinary shares with the balance paid in cash.
   2. The interim results have been prepared on the basis of the accounting
      policies adopted for the year ended 30 June 2000, as set out in the
      Company's Annual Report and Accounts, except as modified by the adoption
      of the following standards:
      FRS 17 - Retirement Benefits
      FRS 18 - Accounting Policies
      The adoption of these standards has no effect on the results reported in
      either the current or previous period.
   3. The dividend will be payable on 9 May 2001 to shareholders on the
      register on 27 April 2001.
   4. Based on the profit attributable to shareholders and a weighted average
      of 39,937,219 ordinary shares (Dec 1999 - 38,629,731 and Jun 2000 -
      38,631,517).
   5. Based on the profit attributable to shareholders and a fully diluted
      weighted average of 40,600,754 ordinary shares (Dec 1999 - 38,228,643 and
      Jun 2000 - 39,325,776). The dilution is caused by outstanding share
      options.
   6. The comparative figures for the year to 30 June 2000 have been taken from
      but do not constitute 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.
   7. Copies of this interim statement and results, which were approved by the
      Board on 9 March 2001, are available from the registered office of the
      Company, which is at Belcon House, Essex Road, Hoddesdon, Herts EN11 0DR.


                                  Eleco plc
                    Summarised consolidated balance sheet
                                                         (Unaudited) (Audited)
                                                         31 December   30 June
                                                          2000   1999      2000
                                                         £'000   £'000   £'000
Fixed assets (Note 1)                                    9,112   6,418    7,724
Current assets
 Stocks                                                  2,349   1,644    2,107
 Debtors                                                 6,860   6,010    6,307
 Cash and bank balances                                    572     666      469
                                                         9,781   8,320    8,883
Creditors falling due within one year
 Bank loans and overdrafts                              (2,823) (1,161)    (905)
 Obligations under finance leases                         (205)   (107)    (154)
 Other creditors                                        (5,766) (5,630)  (6,740)
Net current assets                                         987   1,422    1,084
Creditors falling due after more than one year
 Bank loans                                             (1,340)   (743)  (1,073)
 Obligations under finance leases                         (232)   (125)    (194)
Net assets                                               8,527   6,972    7,541
Capital and reserves
 Called up share capital                                 4,084   3,863    3,864
 Share premium account                                   4,869   4,434    4,435
 Merger reserve                                            367     367      367
 Profit and loss account                                  (793) (1,692)  (1,125)
Equity shareholders' funds                               8,527   6,972    7,541
Reconciliation of movement in equity shareholders' funds
 Profit for the period                                     506     562    1,388
 Dividends                                                (143)   (135)    (387)
 Other recognised losses                                   (31)    (20)     (27)
 Proceeds from issue of ordinary shares                      8       -        2
 Issue of ordinary shares on acquisition of subsidiaries   646       -        -
 Net increase in equity shareholders funds                 986     407      976
 Opening equity shareholders' funds                      7,541   6,565    6,565
 Closing equity shareholders' funds                      8,527   6,972    7,541



                                   Eleco plc
                       Consolidated cash flow statement
                                                           (Unaudited) (Audited)
                                                            Half year      Year
                                                              ended       ended
                                                           31 December  30 June
                                                            2000   1999    2000
                                                           £'000  £'000    £'000
Net cash (outflow)/ inflow from operating activities       (540)    938   2,557
Returns on investment and servicing of finance
 Net interest paid                                         (127)   (60)    (147)
Net cash outflow from returns on investment and servicing  (127)   (60)    (147)
of finance
Taxation                                                    (12)   (96)    (193)
Capital expenditure and financial investment
 Purchase of fixed assets                                  (324)(1,333)  (2,816)
 Sale of tangible fixed assets and investments                 4    11       15
 Net cash outflow from capital expenditure and financial   (320)(1,322)  (2,801)
 investment
Acquisitions and disposals
 Purchase of subsidiaries                                  (713)     -        -
Net cash outflow from acquisitions and disposals           (713)     -        -
Equity dividends paid                                      (252)  (309)    (444)
Net cash outflow before financing                        (1,964)  (849)  (1,028)
Financing
 New bank loans                                             500      -      500
 Repayment of principal under finance leases               (110)   (72)    (164)
 Repayment of bank loans                                   (123)  (545)    (615)
 Issue of ordinary shares                                     8      -        2
Net cash inflow/ (outflow) from financing                   275   (617)    (277)
Decrease in cash in the period                           (1,689)(1,466)  (1,305)
 Reconciliation of operating profit to net cash flow from
 operating activities
 Operating profit                                            694   737    1,719
 Depreciation charge                                         504   311      689
 Amortisation of intangible assets                            18     3        9
 Profit on sale of fixed assets                               (1)   (4)      (7)
 Working capital (increase)/decrease                      (1,755) (109)     147
                                                           (540)   938    2,557
Reconciliation of net cash flow to movement in net debt
 Decrease in cash in the period                           (1,689)(1,466) (1,305)
 Cash (inflow)/outflow from (increase)/decrease in debt     (267)   617     279
 and lease financing
 Increase in net debt resulting from cash flows           (1,956) (849)  (1,026)
 New finance leases                                         (191) (104)    (312)
 Finance lease obligations acquired with subsidiaries        (10)     -       -
 Translation difference                                      (14)  (15)     (17)
 Increase in net debt in the period                       (2,171) (968)  (1,355)
 Opening net debt                                         (1,857) (502)    (502)
 Closing net debt                                         (4,028)(1,470) (1,857)



                                  Eleco plc
                              Segmental analysis
 Group turnover and profits were attributable
 as follows
                                 External sales             Profit/(loss)
                              (Unaudited)     (Audited)   (Unaudited)  (Audited)
                            Half year ended       Year    Half year       Year
                                                 ended      ended        ended
                              31 December      30 June   31 December   30 June
                               2000      1999     2000    2000   1999     2000
                              £'000     £'000    £'000   £'000  £'000    £'000
 Continuing activities
 Building systems            12,937    11,300   25,369     984    875    2,277
 Rail and marine                634     1,035    2,180      37    102      134
 Software systems               296         -        -     102      -        -
 Corporate                        -         -        -   (429)  (240)    (692)
 Total continuing            13,867    12,335   27,549     694    737    1,719
 Exceptional losses                                          -      -     (53)
 Profit before interest                                    694    737    1,666