Interim Results - Losses Increase

REECE PLC
25 October 1999



INTERIM STATEMENT OF THE UNAUDITED CONSOLIDATED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 1999

CHAIRMAN'S STATEMENT

The tough trading conditions experienced in the second half of
1998 have continued into 1999.   Sales volumes have declined so
that for the six months ended 30 June 1999 Reece PLC made a loss
of £474,000 compared with a loss of £224,000 in the first half of
last year.

APP

£'000          6 months ended    6 months ended
                      30/6/99           30/6/98
Sales                   1,504             1,677
Operating                  59               132
profit

The  continuing  strength of sterling compared  to  the  Euro  has
adversely  affected the margins generated in export markets.    At
the  same  time  UK trading conditions continue  to  be  extremely
competitive.

CYCLES

£'000          6 months ended    6 months ended
                      30/6/99           30/6/98
Sales                   2,354             2,865
Operating                 (72)               58
profit

Sales  of the upmarket, higher margin Univega mountain bikes  fell
during the first half. Probike cycle and accessory sales were at a
similar level to last year and as such unable to offset the  lower
contribution from Univega.

SERVICE ENGINEERS

£'000          6 months ended    6 months ended
                      30/6/99             30/6/98
Sales                     859               1,657
Operating                (275)                 55
profit

The  trends  experienced  in the second  half  of  last  year  are
continuing.   UK and export sales of manufacturing and  decorating
equipment  for the ceramic and glass industry are very  depressed.
The property remains unsold.

DIVIDEND

The Directors are not in a position to recommend the payment of  a
dividend.

OUTLOOK

Trading conditions show little sign of improvement.   At present,
the returns from our activities do not provide the necessary base
from which to successfully develop Reece.  We are seeking an
alternative course in order to create more opportunities for
shareholders.


Contact:  Mike Norris on 01634 373551

INTERIM STATEMENT OF THE UNAUDITED CONSOLIDATED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 1999

                         UNAUDITED     Unaudited      Audited
                          6 MONTHS      6 months     Year ended
                           ENDED         ended       
                           30.6.99       30.6.98       31.12.98 
                                                                 
                             £'000         £'000          £'000
                                                                 
TURNOVER                                                         
- continuing                 4,717         6,199         11,753
operations
- discontinued                   -         1,758          2,565
operations
                             -------       -------      ---------
                             4,717         7,957         14,318
Cost of sales               (3,373)       (5,552)       (10,579)
                             -------       -------      ---------
GROSS PROFIT                 1,344         2,405          3,739
Overheads                   (1,795)       (2,388)        (4,453)
Exceptional costs                -          (194)          (232)
                             -------       -------      ---------
OPERATING PROFIT                                                 
(LOSS)
- continuing                  (451)           39          (411)
operations
- discontinued                   -          (216)         (535)
operations
                              ------        ------      ---------
                              (451)         (177)         (946)
Loss on sale of                                                  
discontinued                     -             -          (600)
operations
                             -------       -------      ---------
                               (451)         (177)        (1,546)
Interest                        (23)          (47)           (94)
                             -------       -------      ---------
LOSS ON ORDINARY               (474)         (224)        (1,640)
ACTIVITIES BEFORE
TAXATION
Taxation                           -             -              -
                             -------       -------      ---------
LOSS ON ORDINARY               (474)         (224)        (1,640)
ACTIVITIES AFTER
TAXATION
Dividend                           -             -              -
                             -------       -------      ---------
                                                                 
RETAINED LOSS FOR THE          (474)         (224)        (1,640)
PERIOD
                             -------       -------      ---------
                                                                 
BASIC LOSS  PER              (0.27p)       (0.13p)        (0.93p)
ORDINARY 1P SHARE
DILUTED LOSS PER             (0.27p)       (0.13p)        (0.93p)
ORDINARY 1P SHARE
ADJUSTED (LOSS)              (0.27p)        0.11p         (0.15p)
EARNINGS PER ORDINARY
1P SHARE
                             -------       -------      ---------
                                                                 
Notes :

(i)   The calculation of the basic earnings per ordinary share  is
  based  on  the  loss  on ordinary activities after  taxation  of
  £474,000  (1998:  £224,000) and on 177,054,416  ordinary  shares
  (1998: 177,054,416), being the weighted average number of ordinary
  shares  in issue during the period and during the year ended  31
  December 1998.

  The  diluted  loss per share is the same as the basic  loss  per
  share  for all periods as the share options outstanding  at  the
  end of the periods are not dilutive.


  The  adjusted (loss) earnings per Ordinary 1p share  figure  has
  been   presented  to  eliminate  the  effects  of   discontinued
  operations   and   exceptional   items.     This   presentation,
  calculated  on  the  basis  of the weighted  average  number  of
  Ordinary  1p  shares  in issue, shows the  (loss)  earnings  per
  Ordinary  1p  share that is attributable to the  normal  trading
  activities  of the Group.   The reconciliation between  the  two
  figures is as follows:

                                        6 months    6     Year
                                         ended    months  ended
                                        30.6.99    ended  31.12.98
                                                  30.6.98
                                                  
                                                  
                                            £'000  £'000   £'000
   Deficit for the basic loss per           (474)        (1,640)
   Ordinary 1p share calculation                   (224)
   Operating loss from discontinued             -            535
   operations                                        216
   Loss on sale of discontinued                 -            600
   operations                                          -
   Exceptional costs                            -            232
                                                     194
                                       ----------  ----- -------
                                               --      -       -
                                            (474)          (273)
                                                     186
                                       ----------  ----- -------
                                               --      -       -

(ii)The above financial information does not amount to full
    accounts within the meaning of section 240 of the Companies
    Act 1985 ('the Act'). Full accounts for the year ended 31
    December 1998, which include an unqualified audit report and
    which contained no statement under section 237(2) or (3) of
    the Act, have been delivered to the Registrar of Companies.