Interim Results

Molins PLC
5 September 2000



                              2000 INTERIM RESULTS

Molins  PLC,  the  international specialist engineering company,  announces  its
results for the six months ended 30 June 2000.

                                              2000               1999
                                         Half year          Half year
Turnover                                    £51.7m             £59.1m
Operating profit (before exceptional items)  £3.2m              £1.9m
Profit before tax (after exceptional items)  £2.3m              £2.Om
Profit after tax                             £1.8m              £1.3m
Earnings per share - before exceptional items 9.5p               3.7p
Earnings per share - after exceptional items  6.1p               3.7p
Dividend per share                            2.5p               2.5p

Highlights

- Continued growth in Packaging Machinery with profits up 22%

- Tobacco Machinery operating profit of £1.0m, after charging £0.9m of
   reorganisation costs

- Increase in operating profit (before exceptional items) of 68%

- Exceptional charge of £1.0m following contractual settlements

- Earnings per share increase of 65%

- Strong balance sheet with net cash balance of £3.8m

- Repurchased 17.7% of issued capital since 1 January 2000

Peter Byrom, Chairman, commented:

'These results demonstrate a steady improvement in the performance of the group.
The  benefit  of  the actions being taken in the Tobacco Machinery  division  to
improve  manufacturing  efficiencies and return on capital  employed  are  being
gradually realised. We expect the trading of the division in the second half  of
2000  to  be  better than in the comparable period in 1999. We also  expect  the
Packaging Machinery division to continue to show progress in the second half  of
2000.'

Enquiries:                                              
          Molins PLC                                    Tel: [phone]
          Peter Byrom, Chairman
          David Cowen, Group Finance Director

Issued by:   Citigate Dewe Rogerson                     Tel: [phone]
             Margaret George

CHAIRMAN'S STATEMENT

The  Tobacco Machinery division achieved growth in profits despite the continued
decline  in  orders and sales. This reflects the ongoing reduction in the  cost
base  of  the  division,  together with improvement in overall  efficiency.  The
Packaging  Machinery division returned profits 22% higher  than  last  year,  on
marginally lower sales.

Tobacco Machinery

Good  progress has been made in improving operational efficiencies and  customer
service.  Restructuring  of  the division has continued,  with  576  people  now
employed in the division compared with 815 at the end of 1999 and 1,051  at  the
end  of  1998. As part of this reorganisation, we have reduced the manufacturing
capability  in the Richmond, Virginia operation and consolidated our  activities
to  match  market  demand.  We have maintained our presence  in  other  overseas
business  units  to service our customers locally and continue  to  support  and
develop  our joint ventures. The provision of £3.4m within the balance sheet  at
the  end of 1999 has been used for reorganisation and further costs incurred  of
£0.9m have been charged against the profit of the division.

Demand  for original equipment remains very low and the 20% reduction in tobacco
machinery  turnover from £35.8m in the first half of 1999 to £28.7m in  the  six
months  to  June 2000, largely reflects this continued trend. Demand for  spares
has reduced overall while customers consolidate machinery and spares inventories
within  fewer  factories. Greater clarity is now emerging of the demand  outlook
for this part of the business. The service business is growing from a small base
and  we  have secured a number of new agreements with customers. We continue  to
develop  the aftermarket opportunities for performance enhancements and  rebuilt
machinery, which arise from the substantial installed base of Molins' machinery.
We  also continue to investigate opportunities to develop original equipment  in
partnership with customers as well as exploring other strategic options.

We  are  committed  to providing our customers with a continued  improvement  in
service  and to work in partnership with them to address a fundamentally changed
market place.

Packaging Machinery

Overall  the  division  enjoyed good profit growth on  marginally  lower  sales,
£23.Om  against £23.3m in the comparable period, with net margins  improving  to
9.6%  from  7.7%. A major achievement in the period has been Langen's successful
delivery  of  a  substantial turnkey project, to a multinational  pharmaceutical
group,  which  has demonstrated its ability to design and manage  large  systems
integration projects. The level of orders placed with Langen has been lower than
in  the  same period last year, but in recent months the number of active  order
enquiries has shown a steady increase. Sandiacre delivered good sales growth  in
the period, with order levels showing improvements in its main markets of the
UK, Europe and North America. However margins, in Europe  in particular,  remain
under considerable pressure. Molins ITC Machinery  continued to  work  closely 
with its major customer in the supply of innovative  tea  bag machinery  and 
its  work in that field and in other areas  of  development  has resulted  in a
good increase in business activity levels. All of the  businesses in  the 
Packaging Machinery division are engaged in  the  development  of  new products
for their respective markets.

Exceptional items

During  the  period a number of outstanding commercial issues were  resolved.  A
long running claim for unpaid royalty fees was satisfactorily settled in May. A
partially  customer  funded development contract at Langen, which  commenced  in
1997,  has  not  proved successful. A decision was therefore taken  in  May, in
collaboration  with the customer, to cease development to prevent further  costs
being  incurred.  In  June  a contract was entered into  for  the  sale  of  the
Peterborough property for a net £3.5m, the proceeds for which were  received  in
July.

The effect of these transactions is a loss of £1.0m in the period.

Operating results

Operating  profits  of the Tobacco Machinery division increased  from  £0.1m  to
£1.0m.  Operating profits of the Packaging Machinery division increased  by  22%
from £1.8m to £2.2m. Group profit before tax before exceptional items was £3.3m,
compared  with £2.0m, an increase of 65%. The taxation charge has been based  on
an  estimation of the full year effective rate, which is 22% compared to 35%  in
1999. Profit after tax was £1.8m compared with £1.3m in 1999. Earnings per share
before  exceptional items were 9.5p and after exceptional items  were  6.1p,
compared with 3.7p last year.

Shareholders' funds and cash

In  the  first  six months of the year the company purchased for cancellation  a
total  of 5.74m shares, representing 17.7% of the issued capital outstanding  at
the beginning of the year. The aggregate cost, including fees, was £6.5m and the
average price at which shares were purchased was 114p.

Equity  shareholders'  funds  before purchases were  £69.3m  and  following  the
purchases were £62.8m at 30 June 2000, compared with £67.4m at 31 December 1999.

Net  cash  amounted  to £3.8m compared with £8.2m at 31 December  1999.  In  the
period £4.2m was disbursed in respect of restructuring costs, £3.4m of which was
charged  against prior periods profits, and £3.2m was disbursed  in  respect  of
share purchases. The balance of payments due for the share purchases was made in
July. Dividends of £1.2m were paid in the period.

Dividend

The  Directors  have  declared an interim dividend of 2.5p  per  ordinary  share
(1999:  2.5p).  The  interim  dividend will  be  paid  on  26  October  2000  to
shareholders  on the register on 22 September 2000 and is covered 2.4  times  by
earnings.

Board

Mike  Hodgkinson  retired  from the board on 31 May  2000  after  six  years  of
service.  Mr  Hodgkinson has made a major contribution to the  group  over  this
period  and I thank him on behalf of the board for his sound advice. John Wilson
was  appointed on 1 August 2000 as a non-executive director. Mr Wilson, aged 57,
has  a  long career in engineering and was Chief Executive of Vickers  Aerospace
and Marine Division from 1992 to 1998.

Outlook

The  benefit  of  the actions being taken in the Tobacco Machinery  division  to
improve manufacturing efficiencies and the return on capital employed are  being
gradually realised. We will continue the process of reorganisation in the second
half  of  the year and are committed to ensuring that capacity is in  line  with
market  conditions. We expect the trading of the division in the second half  of
2000  to  be  better than in the comparable period in 1999. We also  expect  the
Packaging Machinery division to continue to show progress in the second half  of
2000.

Peter Byrom
Chairman

5 September 2000
                                

Group profit and loss account

                  6 months to 30 June 2000      12 months to 31 December 1999
                     Before                                Before
                   exceptional  Exceptional    6 months to  except- Except-
                                                             ional   ional
                       items      items  Total  30 June 1999 items  items Total
                          £m       £m     £m      £m          £m      £m    £m
                    Notes         Note 3
Turnover
Continuing operations 1   51.7      -    51.7    59.1       110.6     -  110.6

Operating profit
Continuing operations      3.2   (1.0)    2.2     1.9         3.3     -    3.3

Loss on sale/closure of
businesses                  -        -       -       -          -  (0.3)  (0.3)

Net interest receivable    0.1       -     0.1    0.1         0.4     -    0.4

Profit on ordinary
activities before taxation 3.3   (1.0)      2.3   2.0         3.7  (0.3)   3.4

Taxation                  (0.5)     -      (0.5) (0.7)       (1.3)  2.1    0.8

Profit for the period      2.8   (1.0)      1.8    1.3        2.4   1.8    4.2

Dividends (including non
equity)                   (0.5)     -      (0.5)  (0.9)      (2.2)    -   (2.2)

Retained profit for the
period                     2.3   (1.0)      1.3    0.4        0.2    1.8   2.0
Earnings per ordinary
share                  8  9.5p   (3.4)p     6.1p   3.7p       6.6p   5.2p 11.8p

Dividend per share    10  2.5p     -        2.5p   2.5p       6.5p     -   6.5p


Group balance sheet

                                       30 June     30 June     31 Dec
                                          2000        1999       1999
                                            £m          £m         £m
Fixed Assets
Tangible assets                           23.0        28.9       26.9
Investments                                2.3         1.9        2.1
                                          25.3        30.8       29.0
Current assets
Stocks                                    26.6        35.1       30.8
Debtors - due within one year             27.5        36.1       28.5
Debtors - due after more than one year    19.2        19.9       16.7
Cash at bank and in hand                   5.5        11.8        9.8
                                          78.8       102.9       85.8
Creditors - amounts falling due within one year
Borrowings                               (1.4)       (1.8)      (1.2)
Other creditors                         (34.2)      (53.1)     (37.6)
Proposed dividend                        (0.6)       (0.9)      (1.3)
                                        (36.2)      (55.8)     (40.1)
Net current assets                       42.6        47.1       45.7
Total assets less current liabilities    67.9        77.9       74.7
Creditors - amounts falling due after more than one
 year
Borrowings                               (0.3)       (0.4)      (0.4)
Other creditors                          (0.1)       (0.3)      (0.2)
                                         (0.4)       (0.7)      (0.6)
Provisions for liabilities and charges   (3.8)       (5.5)      (5.8)
Net assets                               63.7        71.7       68.3
 Capital and reserves
Called up share capital                    7.6         9.7        9.0
Share premium account                     25.6        25.6       25.6
 Capital redemption reserve                2.2         0.1        0.8
Revaluation reserve                        5.7        17.8        7.3
Profit and loss account                   22.6        18.5       25.6
Shareholders' funds (including non-equity
 interests)                               63.7        71.7       68.3

Net assets per share                      235p        200p       208p


Group cash flow statement
                                                  6 months  6 months  12 months
                                                to 30 June to 30 June to 31 Dec
                                                      2000       1999    1999
                                                        £m         £m        £m
Net cash inflow/(outflow) from operating
 activities                                            0.3        0.1     (0.9)

Returns on investments and servicing of finance
Net interest received                                  0.1        0.1      0.4

Net cash inflow for returns on investments and
 servicing of finance                                  0.1        0.1      0.4

Taxation                                               0.2       (0.7)     0.3

Capital expenditure (net of sale proceeds)            (0.5)      (0.4)    (1.4)

Acquisitions and disposals
Investment in joint venture                           (0.2)         -        -
Sale of businesses                                     0.1        0.2      3.8

Net cash (outflow)/inflow for acquisitions and
 disposals                                            (0.1)       0.2      3.8

Equity dividends paid                                 (1.2)      (0.6)    (1.5)

Net cash (outflow)/inflow before management of
 liquid resources and financing                       (1.2)      (1.3)     0.7
                
Management of liquid resources                         1.0        2.5      3.7
      
Financing
Purchase of own shares                                (3.2)      (0.1)    (3.8)
Decrease in loans and finance lease obligations          -          -     (0.1)

Net cash outflow from financing                       (3.2)      (0.1)    (3.9)

(Decrease)/increase in cash in the period             (3.4)       1.1      0.5
                             
Closing net funds                                      3.8        9.6      8.2


Reconciliation of operating profit to net cash flow from operating activities

                                           6 months   6 months  12 months
                                         to 30 June to  30 June   to 31 Dec
                                               2000     1999         1999       
                                               £m        £m        £m
Operating profit                             3.2        1.9       3.3
Depreciation                                 1.6        1.7       3.3
Other movements                             (0.4)         -      (0.4)
Working capital movements                   (0.3)       0.4      (1.6)

Operating cash flow before exceptional items 4.1        4.0       4.6
Movements in restructuring and rationalisation
 provisions                                 (3.4)      (3.9)     (5.5)
Exceptional items                           (0.4)         -

Net cash inflow/(outflow) from operating
 activities                                  0.3        0.1      (0.9)


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

                                        6 months  6 months  12 months
                                      to 30 June to 30 June to 31 Dec,
                                            2000      1999       1999
                                              £m        £m         £m
(Decrease)/increase in cash in the period  (3.4)       1.1        0.5

Cash inflow from movement in liquid
 resources                                 (1.0)      (2.5)      (3.7)
Cash outflow from decrease in debt and
 lease financing                              -          -        0.1

Change in net funds resulting from
 cash flows                                (4.4)      (1.4)      (3.1)
Translation difference                        -        0.1        0.4

Movement in net funds in the period        (4.4)     (1.3)      (2.7)
Opening net funds                            8.2      10.9       10.9

Closing net funds                            3.8       9.6        8.2

Reconciliation of movements in shareholders' funds

                                          6 months   6 months   12 months
                                       to 30 June   to 30 June  to 31 Dec       
                                            2000       1999         1999
                                               £m         £m        £m
Profit for the period                        1.8       1.3        4.2
Dividends                                   (0.5)     (0.9)      (2.2)

Retained profit for the period               1.3       0.4        2.0
Currency translation differences arising
 on foreign currency net investments         0.6         -       (0.3)
Purchase of own shares                      (6.5)     (0.3)      (3.8)
Other recognised gains and losses for
 the period                                    -       1.2          -
Net (decrease)/increase in shareholders'
 funds                                      (4.6)      1.3      (2.1)
Opening shareholders' funds                 68.3      70.4      70.4

Closing shareholders' funds                 63.7      71.7      68.3

Notes

1    Segmental analysis
                         Turnover                  Operating profit
                6 months 6 months 12 months 6 months  6 months  12 months
                  to         to      to       to        to        to
               30 June   30 June  31 Dec to   30 June  30 June   to 31 Dec
                 2000     1999     1999       2000      1999      1999
                   £m       £m       £m         £m        £m        £m
By activity
Continuing operations
Tobacco Machinery   28.7     35.8     68.4      1.0     0.1      0.3
Packaging Machinery 23.0     23.3     42.2      2.2     1.8      3.0
                    51.7     59.1    110.6      3.2     1.9      3.3
Exceptional items      -        -        -    (1.0)       -        -
                    51.7     59.1    110.6      2.2     1.9      3.3

2    Operating profit includes a net pension credit of £1.4m (1999: £0.4m, 1999
     full year: £1.8m).
3    The exceptional item of £1.0m relates to the settlement of a long running
     claim for unpaid royalty fees, the cessation of a partially customer funded
development contract at Langen Packaging Inc and the profit on sale of the
Peterborough property.  The property was sold for a net £3.5m, the proceeds for
which were received in July 2000.
4    The results for the full year 1999 have been extracted from the Group's
     full accounts for that year which included an unqualified audit report and 
     have been filed with the Registrar of Companies.
5    Other creditors due within one year include £3.3m in respect of the
     purchase of own shares contracted for in the period 25-30 June 2000.
6    The interim financial statements have been prepared on the basis of the
     accounting policies set out in the Group's 1999 statutory accounts.
7    The financial information for the half year has not been audited, although
     the auditor has carried out a review.
8    Earnings per ordinary share are based upon the profit after taxation less
     the preference dividend and on a weighted average of 29,337,106 shares in  
     issue during the period (1999: 35,571,549).
9    The preference dividend due on 30 June 2000 amounted to £27,000 (1999:
     £27,000).
10   The cost of the interim dividend of 2.5p per ordinary share for the six
     months to 30 June 2000 will amount to £0.6m.
11   The average US dollar exchange rate for the period to 30 June 2000 was
     US$1.57 (1999: US$1.61) and the rate at 30 June 2000 was US$1.51 (1999:    
     US$1.58).  The rate at 31 December 1999 was US$1.61.