Interim Results

Reece PLC
28 September 2001

Reece PLC

28 September 2001



Interim Report 2001

Chairman's Statement



Results



The results for the six months ended 30 June 2001 shows a total loss of £
100,000 (2000: loss £604,000). This included a loss on discontinued operations
and exceptional items of £49,000 (2000: loss of £419,000).



Dividend



The directors do not recommend the payment of a dividend.



Exceptional Items



The exceptional items of £49,000 relate to the final costs of the disposal of
the APP division.



Current Trading



The Group's remaining business is Service (Engineers) which manufactures
machinery for the ceramic and glass industries.



Turnover in the six months was £1,717,000 (2000: £1,171,000) producing an
operating profit of £54,000 (2000: profit of £20,000).



Outlook



The Group continues to enjoy the support of its bank and has a number of
substantial contract opportunities in the pipeline.



Your Board continues to review all options available to it.





A N McArthur



Chairman





Summarised Profit and Loss Account
                                                    6 Months to     6 Months to
                                                   30 June 2001    30 June 2000
                                                      Unaudited       Unaudited
                                             Note         £'000           £'000
Turnover
- continuing operations                                   1,717           1,171
- discontinued operations                                     -           2,695
                                                          1,717           3,866

Total operating loss
- continuing operations                                    (37)           (160)
- discontinued operations                                     -           (283)
                                                           (37)           (443)
Non-operating exceptional items                1           (49)           (136)
Interest payable less interest receivable                  (14)            (25)

Loss on ordinary activities before taxation               (100)           (604)
Tax on loss on ordinary activities             2              -               -

Loss on ordinary activities after taxation                (100)           (604)
Dividends                                      3              -               -

Retained loss for the period                              (100)           (604)

Loss per share                                 4              p               p
Basic                                                    (0.06)          (0.34)

Diluted                                                  (0.06)          (0.34)

Dividends per share                                           -               -


Summarised Consolidated Cash Flow Statement
                                                    6 Months to     6 Months to
                                                   30 June 2001    30 June 2000
                                                      Unaudited       Unaudited
                                                          £'000           £'000

Net cash outflow from operating activities                (108)           (289)
Returns on investment and servicing of                     (14)            (25)
finance
Taxation paid                                                 -               -
Capital expenditure and financial investment               (18)              88
Acquisitions and disposals                                  140             610
Financing                                                   (9)           (392)

Decrease in cash                                            (9)             (8)








Summarised Consolidated Balance Sheet
                                               At 30 June 2001       At 30 June
                                                                           2000
                                                     Unaudited        Unaudited
                                                        £'000        £'000

Fixed assets
Tangible assets                                           628          786

Current assets
Stocks                                                  1,038        1,537
Debtors due after one year                                  -          125
Debtors due within one year                               763        1,416
                                                        1,801        3,078

Creditors: Amounts falling due within one             (2,020)      (1,910)
year

Net current (liabilities)/assets                        (219)        1,168

Total assets less current liabilities                     409        1,954

Creditors: Amounts falling due after more
than one year
                                                          (2)         (20)

Net assets                                                407        1,934



Capital and reserves
-Called up share capital                                6,921        6,921
-Share premium account                                  2,547        2,547
-Profit and loss account                              (9,061)      (7,534)

Total shareholders' funds                                 407        1,934

Note:



Total shareholders' funds are comprised of:
Equity shareholders' funds                            (4,744)      (3,217)
Non-equity shareholders' funds                          5,151        5,151

                                                          407        1,934




Notes

1.   Non-operating exceptional items                6 Months to    6 Months to
                                                        30 June        30 June
                                                           2001           2000
                                                      Unaudited      Unaudited
                                                          £'000          £'000

      The loss on ordinary activities before
      taxation is after charging the following 
      exceptional items:

      Loss on disposal of discontinued                     (49)          (136)
      operations


2.   Taxation
      No tax charge arises in the period due to trading losses (2000 - £nil)


3.   Dividends
      The directors do not recommend the payment of a dividend (2000 - £nil)


4.   Loss per share                                 6 Months to    6 Months to
                                                        30 June        30 June
                                                           2001           2000

                                                      Unaudited      Unaudited
                                                          £'000          £'000

      These have been calculated on losses of:            (100)          (604)

                                                          000's          000's
      The weighted average number of shares was:

      Basic                                             177,054        177,054
      Adjustments                                             -              -

      Diluted                                           177,054        177,054


5.   Interim Report


This interim report was neither audited nor reviewed by the auditors. It was
approved by the Board on 26 September 2001. It has been prepared using
accounting policies that are consistent with those adopted in the statutory
accounts for the year ended 31 December 2000.