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Monday 31 January, 2000

Fairfield Enterprise

Final Results and Offer Details - Part 2

Fairfield Enterprises PLC
31 January 2000

PART 2


                        Appendix II
             Principal terms of the Loan Notes


The Loan Notes will be constituted by the Loan Note
Instrument to be executed by Bobst and guaranteed by
National Westminster Bank Plc (the 'Guarantor').  The issue
of the Loan Notes will be conditional on the Offers
becoming or being declared unconditional in all respects.
The Loan Note Instrument will contain provisions, amongst
others, to the effect set out below.

1. Issue, form and status
   
   The Loan Notes will be issued by Bobst (the 'Issuer')  at
   par  in  amounts and integral multiples of  £1  and  will
   constitute   unsecured   obligations   of   the   Issuer.
   Fractional entitlements will be disregarded and will  not
   be  paid.  The Loan Note Instrument will not contain  any
   restrictions on borrowing or on the charging or  disposal
   of  assets by the Issuer.  No Loan Notes shall be  issued
   unless the total principal amount thereof is no less than
   £250,000 or such smaller amount as the Issuer may decide.
   The  Loan Note Alternative will not be made available  to
   certain overseas persons.
   
2. Interest
   
(a)Interest will be payable by the Issuer on the principal
   amount of the Loan Notes (subject to the deduction or
   withholding of tax on such interest to the extent
   required by any applicable law or regulation) by half
   yearly instalments in arrears on 1 January and 1 July or,
   if either such date is not a business day, on the
   succeeding business day ('Interest Payment Dates') in
   each year in respect of the Interest Periods (as defined
   below) ending on the day immediately before those dates
   at a rate calculated as provided in paragraph 2(b),
   except that the first payment of interest on the Loan
   Notes, which will be made on 1 July 2000, will be in
   respect of the period from (and including) the first date
   of issue of any Loan Notes up to (but excluding) 1 July
   2000 (the 'Initial Interest Period'). The Initial
   Interest Period and each subsequent period from (and
   including) an Interest Payment Date up to (but excluding)
   the next Interest Payment Date are each herein called an
   'Interest Period'.
   
(b)The rate of interest on the Loan Notes for each Interest
   Period shall be the rate per annum equal to LIBOR minus
   1.0 per cent.  'LIBOR' means the rate per annum quoted at
   or about 11.00am, London time, on the Quotation Date for
   the six months corresponding to the relevant Interest
   Period on that page of the Telerate Screen which displays
   British Bankers' Association Interest Settlement Rates
   for deposits of £10 million in pounds sterling for such
   period (such page being currently 3750) or, if such page
   or such service shall cease to be available, such other
   page or such other service (as the case may be) used for
   the purpose of displaying British Bankers' Association
   Interest Settlement Rates for pounds sterling as the
   Guarantor shall select, provided that if no such rate is
   displayed for pounds sterling and/or the relevant period
   and the Guarantor has not selected an alternative service
   on which two or more such quotations are displayed, LIBOR
   shall mean the arithmetic mean of the rates (as notified
   to the Issuer) at which each of the Reference Banks (HSBC
   plc, Lloyds TSB Bank plc, Barclays Bank PLC and the
   Guarantor) was offering to prime banks in the London
   Interbank Market for deposits in pounds sterling of such
   amount and for such period at or about 11.00am, London
   time, on the Quotation Date for such period.  The
   'Quotation Date' means, in relation to any Interest
   Period for which an interest rate is to be determined,
   the day on which quotations would ordinarily be given by
   prime banks in the London Interbank Market for deposits
   in pounds sterling for delivery on the first date of that
   period save that if, for such period, quotations would
   ordinarily be given on more than one date, the Quotation
   Date for that period shall be the last of those dates.

(c)Interest shall accrue from day to day and shall be
   calculated on the basis of a 365 day year and the actual
   number of days elapsed.
   
(d)Each interest payment shall be made (subject to any
   requirement to deduct or withhold therefrom any income or
   other taxes) to the Noteholders on the register thereof
   at the close of business on the day preceding the
   relevant Interest Payment Date and every such Noteholder
   shall be deemed to be the holder on such Interest Payment
   Date of the Loan Notes held by him on such preceding date
   notwithstanding any intermediate transfer or transmission
   of any such Loan Notes.
   
3. Repayment and redemption
   
(a)Any Loan Notes not previously redeemed or purchased as
   referred to in paragraph 4 will be redeemed in full at
   par on 30 June 2005 together with accrued interest up to
   (but excluding) that date (subject to any requirement to
   deduct or withhold therefrom income or other taxes).
   
(b)Any Noteholder is entitled to require the whole or any
   part or any integral multiple thereof of any Loan Notes
   held by it to be redeemed at par, together with accrued
   interest thereon up to (but excluding) the date of
   repayment (subject to deduction or withholding of tax to
   the extent required by any applicable law or regulation)
   on any Interest Payment Date falling on or after 1
   January 2001 by giving to the Issuer not less than 30
   days' notice in writing to expire on or before the
   relevant Interest Payment Date accompanied by the
   certificates for all of the Loan Notes to be redeemed.
   Notice must be given by completing the form of redemption
   notice endorsed on those certificates and by lodging the
   same with Bobst.
   
(c)The Issuer shall, if at any time after 1 July 2001 Loan
   Notes representing less than £100,000 shall not have been
   repaid or purchased or cancelled, have the right to
   redeem at par all (but not some only) of the Loan Notes,
   together with accrued interest thereon up to (but
   excluding) the date of redemption (subject to deduction
   or withholding of tax to the extent required by any
   applicable law or regulation).  Such right shall be
   exercised by giving not less than 60 days' irrevocable
   notice in writing to the remaining Noteholders, such
   notice to expire on any Interest Payment Date on or after
   1 July 2001.
   
(d)The Noteholders shall become entitled by notice given in
   writing to the Issuer to require the Issuer to redeem
   immediately all the Loan Notes that are held by them at
   par, together with accrued interest (subject to deduction
   or withholding of tax to the extent required by any
   applicable law or regulation), upon certain events of
   default as set out in the Loan Note Instrument and the
   Issuer is further permitted to repay the Loan Notes at
   par on any Interest Payment Date falling on or after 1
   January 2001, together with accrued interest up to (but
   excluding) the date of repayment (subject to any
   requirement to deduct or withhold therefrom income or
   other taxes), on giving not less than 30 days' prior
   written notice to the Noteholders if interest payable
   under the Loan Notes is reasonably expected by the Issuer
   to fall to be treated as a distribution for corporation
   tax purposes (and corporation tax shall include any Swiss
   Canton and Federal taxes).
   
4. Purchase and cancellation
   
   The Issuer or any other member of the Bobst Group may at
   any time purchase or otherwise acquire any Loan Notes by
   tender (available to all Noteholders alike) or by private
   treaty at any price.  All Loan Notes so purchased, and
   all Loan Notes redeemed or repaid under paragraph 3
   above, shall be cancelled and the Issuer shall not be at
   liberty to reissue the same.
   
5. Winding up of the Issuer
   
   Upon a winding up of the Issuer, the Noteholders would
   rank pari passu with other unsecured and unsubordinated
   obligations of Bobst, except to the extent provided by
   law.
   
6. Modification
   
   The provisions of the Loan Note Instrument and the rights
   of Noteholders will be subject to modification,
   abrogation or compromise in any respect with the sanction
   of an extraordinary resolution (as defined in the Loan
   Note Instrument), in the manner to be provided for in the
   Loan Note Instrument and with the prior written consent
   of the Issuer.  The Issuer may also make amendments to
   correct a manifest error in the Loan Note Instrument
   without sanction provided this would not, in the
   reasonable opinion of the Issuer, be materially
   prejudicial to the interests of the Noteholders.
   
7. Registration, transfer and marketability
   
   The Loan Notes will be evidenced by certificates and will
   be in registered form and will be transferable in amounts
   of £100 or integral multiples thereof (or the entire
   holding).  No application has been or is intended to be
   made to any stock exchange for the Loan Notes to be
   listed on or dealt in.  The Loan notes may not be
   transferred in the United States, Canada, Australia or
   Japan.
   
8. Right to additional Loan Notes
   
   Each Noteholder shall have the right to acquire (by
   subscription at nominal value of an amount (payable in
   full on subscription) up to or equal to one tenth of such
   Noteholder's holding of Loan Notes) additional loan notes
   to be issued by a subsidiary of the Issuer nominated for
   the purpose by the Issuer ('Additional Notes') on terms
   and conditions substantially the same as those applicable
   to the Loan Notes, except as follows:
   
(a)this right shall be exercisable on the second anniversary
   of the date of the Loan Note Instrument and on the first
   business day of each month thereafter until redemption of
   all of the Loan Notes held by that Noteholder by the
   Noteholder giving not less than 30 days' prior written
   notice to the Issuer and shall be exercised only once in
   relation to each Loan Note;
   
(b)the rate of interest on the Additional Notes shall be 2.0
   per cent below the interest rate per annum referred to in
   paragraph 2(b) above; and
   
(c)the Additional Notes shall not carry any right to acquire
   additional securities.
   
   The   obligations  of  the  Issuer  in  relation  to  any
   Additional   Notes  shall  not  be  guaranteed   by   the
   Guarantor.
   
9. Substitution or exchange
   
   The Loan Notes contain provisions entitling the Issuer,
   without the consent of Noteholders, to substitute any
   member of the Bobst Group (a 'Substituted Debtor') as the
   principal debtor or debtors under the Loan Note
   Instrument and the Loan Notes on or after 1 January 2001.
   

10.Governing law
  
   The Loan Notes and the Loan Note Instrument shall be
   governed by and construed in accordance with English law.
   
11.Guarantee
  
   The Issuer's (or, if appropriate, the Substituted
   Debtor's) obligations under the Loan Note Instrument will
   be guaranteed by the Guarantor.  If  Loan Notes become
   payable pursuant to the terms of the Loan Note Instrument
   and are not repaid by the Issuer (or if appropriate, by
   the Substituted Debtor) in accordance with its
   obligations, then the Guarantor will pay to the
   Noteholder subject to and in accordance with the
   provisions of the Loan Note Instrument (and without set-
   off or counterclaim) the principal amount of the Loan
   Notes to be so repaid, together with any accrued interest
   payable in respect of the Loan Notes up to and including
   the due date for payment.  If any interest payable
   pursuant to the terms of the Loan Note Instrument is not
   paid by the Issuer (or, if appropriate, by the
   Substituted Debtor) in accordance with its obligations,
   the Guarantor will pay to the Noteholder in accordance
   with the provisions of this Loan Note Instrument (and
   without set-off or counterclaim) the amount of any
   interest so payable subject to any request to deduct or
   withhold thereupon any income taxes.

                       APPENDIX III
                             
                        Definitions
                             
                             
'Act'            the Companies Act 1985 (as amended)
                 
'ARM Corporate   ARM Corporate Finance Limited
Finance'         

'Board of Bobst' the members of the board of Bobst
                 
'Board of        the board of directors of Fairfield
Fairfield'       

'Bobst Group'    Bobst, its subsidiaries and subsidiary
                 undertakings
                 
'business day'   a day, not being a Saturday or Sunday, on
                 which banks in the City of London are
                 typically open for business
                 
'Canada'         Canada, its provinces and territories
                 
'Code'           the City Code on Takeovers and Mergers
                 
'Executive       the members of the Executive Committee of
Committee'       Bobst
                 
'Fairfield       Fairfield, its subsidiaries and subsidiary
Group'           undertakings
                 
'Fairfield Share the Fairfield Approved Share Option Scheme
Option Schemes'  1997 and the Fairfield Unapproved Share
                 Option Scheme 1997
                 
'Fairfield       holders of Fairfield Shares
Shareholders'    

'Fairfield       the existing unconditionally allotted or
Shares'          issued and fully paid ordinary shares of 20p
                 each in the capital of Fairfield and any
                 further shares which are unconditionally
                 allotted or issued prior to the date on which
                 the Offers close (or such earlier date or
                 dates as Bobst may, subject to the Code,
                 decide)
                 
'Form(s) of      the Form(s) of Acceptance, authority and
Acceptance'      election relating to the Offers and the Loan
                 Note Alternative
                 
'Japan'          Japan, its cities and prefectures,
                 territories and possessions
                 
'Loan Note       the right of election forming part of the
Alternative'     Offers whereby eligible holders of Fairfield
                 Shares and/or Loan Stock who validly accept
                 the Offers may elect to receive all or part
                 of the cash consideration to which they would
                 otherwise be entitled under the Offers in
                 Loan Notes
                 
'Loan Note       the instrument to be entered into by Bobst to
Instrument'      constitute the Loan Notes and which is
                 guaranteed by National Westminster Bank Plc
                 
'Loan Notes'     the floating rate unsecured loan notes to be
                 issued by Bobst pursuant to the Loan Note
                 Alternative, particulars of which are set out
                 in Appendix II
                 
'Loan Stock'     the £1 million of convertible loan stock
                 issued by Fairfield to the trustees of the R
                 G Austin 1994 Settlement, the trustees of the
                 M B Owen 1992 Settlement and Ethel Austin
                 Investments Limited pursuant to the
                 acquisition of the Palatine Engraving Company
                 Limited
                 
'Loan Stock      the recommended offer being made by Hawkpoint
Offer'           Partners on behalf of Bobst to acquire all of
                 the outstanding Loan Stock on the terms and
                 subject to the conditions set out in the
                 Offer Document and the Form(s) of Acceptance
                 and including, where the context so permits,
                 any subsequent revision, variation, extension
                 or renewal of such offer or alternative
                 
'Loan            a holder of Loan Stock
Stockholder'     

'London Stock    The London Stock Exchange Limited
Exchange'        

'Noteholders'    holders of Loan Notes
                 
'Offer Document' the document addressed to Fairfield
                 shareholders and Loan Stock Holders
                 containing the Offers
                 
'Offer Period'   the period commencing on 31 January 2000 and
                 ending on 21 February 2000 or, if it is
                 later, the date when the Ordinary Offer
                 becomes or is declared unconditional as to
                 acceptances or lapses
                 
'Offers'         the Ordinary Offer and the Loan Stock Offer
                 
'Official List'  the Daily Official List of the London Stock
                 Exchange
                 
'Option Holder'  a participant in either of the Fairfield
                 Share Option Schemes
                 
'Ordinary Offer' the recommended offer being made by Hawkpoint
                 Partners on behalf of Bobst to acquire all of
                 the Fairfield Shares on the terms and subject
                 to the conditions set out in the Offer
                 Document and the Form(s) of Acceptance and
                 including, where the context so permits, any
                 subsequent revision, variation, extension or
                 renewal of such offer or alternative
                 
'Panel'          the Panel on Takeovers and Mergers
                 
'Regulations'    the Uncertificated Securities Regulations
                 1995 (SI 1995 No.95/3272)
                 
'Securities Act' the United States Securities Act of 1933, as
                 amended
                 
'Share Options'  Options granted under the Fairfield Share
                 Option Schemes
                 
'Sutherlands'    Sutherlands Limited, a member of the London
                 Stock Exchange
                 
'UK' or 'United  the United Kingdom of Great Britain and
Kingdom'         Northern Ireland
                 
'United States'  the United States of America, including the
                 states of the United States and the District
                 of Columbia, its territories and possessions
                 and all areas subject to its jurisdiction
                 
'Warrants'       the warrants issued by Fairfield to subscribe
                 for Fairfield Shares at a price of 80p per
                 Fairfield Share
                 
'Warrant         holders of warrants
Holders'         

'subsidiary',    'subsidiary   undertaking',    'associated
undertaking'  and  'undertaking'  shall  be  construed   in
accordance  with the Act, other than paragraph 20(1)(b)  of
Schedule  4A  to the Act which shall be excluded  for  this
purpose and 'significant interest' means an interest in ten
per cent or more of the equity share capital (as defined in
the Act).

Terms defined in the CREST Reference Manual dated May  1996
shall, unless the context otherwise requires, bear the same
meanings when used herein.


                        Appendix IV
                             
 Preliminary Announcement of Results for the year ended 30
                      September 1999

Chairman's statement

I  am pleased to present my report to shareholders covering
the  results  for the year ended 30 September  1999.   This
report  should  be read in conjunction with  my  letter  to
shareholders  issued today which recommends  acceptance  of
the  offers being made by Hawkpoint Partners on  behalf  of
Bobst  SA  to  acquire the entire issued and to  be  issued
share capital and loan stock of the Company.

As  previously predicted, turnover for the year  was  lower
than in 1998 at £57.8m (1998 - £65.3m). The higher level of
turnover  in  1998 included a significant amount  resulting
from a major green field corrugated installation.

Operating  profits for the year were £2.9m (1998 -  £2.6m).
The  improvement in operating margins arose as a result  of
an improved mix of business.

The  markets  we  serve  continue  to  undergo  significant
consolidation, which reflects the maturity of the  business
sectors   in   which  we  operate.   International   groups
increasingly  control  our major customers  and  the  trend
towards centralised purchasing is gathering pace.  A direct
consequence  of  this trend is that, with  effect  from  21
January  2000, Winkler & Dunnebier will directly  represent
themselves  in  the United Kingdom and Eire  markets.   The
Winkler & Dunnebier range of envelope machinery has been  a
feature  of  the Oscar Friedheim portfolio for many  years.
The  agreement  we  have reached with Winkler  &  Dunnebier
provides  for  compensation sufficient to ensure  that  the
current  year's  Group performance will not  be  materially
affected  by  these events.  Anticipating  the  outcome  of
trends such as this, we restructured the Group's businesses
and  we  continue our drive towards the creation  of  added
value  products and services to supplement our  traditional
machinery sales distribution businesses.

The  restructuring of the Group, which we completed  during
the second half of the year, enabled us to sell the Group's
London   freehold  properties,  realising   a   profit   of
approximately  £1.0m.   The  costs  of  the  reorganisation
amounted to £0.9m.

Earnings  per  share increased to 32.3 pence (1998  -  22.1
pence)  reflecting the after-tax effect of  property  sales
and  the  exceptional reorganisation costs.   Earnings  per
share  expressed  on  a normalised basis  (excluding  these
exceptional effects) improved by 2.9 per cent to 21.3 pence
(1998 - 20.7 pence).

The directors have declared a second interim dividend of  5
pence  per share in lieu of a final dividend.  This  brings
the  total  dividend payable for the year to 8.3 pence,  an
increase of 28 per cent on last year's level of 6.5 pence.

The  Review  of  Operations  sets  out  a  summary  of  our
activities  for  the year and the Board's view  of  current
trading and the Group's future prospects.

Operating in a mature market sector, we have concluded that
the  main  opportunity to provide growth  for  shareholders
would be through an acquisition led strategy.   During  the
year  we  have  researched a number of targets  within  our
field of activity and commenced some discussions.  However,
save  for the acquisition of a small engraving business  in
Scotland,  we  have not been able to agree  terms  for  any
acquisitions  which  would provide  value  to  shareholders
without  creating the risk of conflicts of  interests  with
our core businesses.

I  would  like to express my appreciation and that  of  the
Board  to  all our employees for their efforts  during  the
year.  During this time of change, it is only through their
continued  support  and  commitment  that  the  Group   can
continue to meet its objectives.

J R Venn
Chairman

31 January 2000

Review of operations

During  the  year we have achieved a number of  significant
milestones.

To  meet changing customer needs, position the Company more
competitively  in  its  markets and to  improve  return  on
capital, we restructured and relocated the machinery  sales
businesses  of  Oscar Friedheim Limited during  the  second
half  of  our financial year.  The Print Finishing Division
has become known as Friedheim International Limited and has
relocated  to  leased  premises in  Hemel  Hempstead.   The
Carton  & Corrugated Division has become known as Friedheim
Converting  Equipment Limited and has relocated  to  leased
premises in Redditch.

We   have  launched  a  catalogue  sales  initiative  aimed
initially  at  the packaging sector with the  objective  of
broadening  the range of spare parts and other products  we
offer  to  the  market.  This initiative will  prepare  the
group  for  the promotion and sale of appropriate  products
through the media of e-commerce.

Oscar Friedheim

Friedheim  International is a leading supplier of  machines
and handling systems to the print finishing industries.  It
represents  a  number  of  major  international   machinery
manufacturers with which it has longstanding relationships.
Whilst its current business is predominantly restricted  to
the  markets  of the United Kingdom and Eire, some  of  its
distributorships provide the opportunity for extending  its
territory  into  Europe and beyond.  We  are  currently  in
discussion  with  a number of principals  with  a  view  to
offering  a  portfolio  of  system  solutions  to  a  wider
geographical  market.  Installations, particularly  in  the
second half of the financial year, were at high levels  and
its  order book continues to be strong.  This reflects  the
depth of industry knowledge and the abilities of the senior
management team employed in this business unit.

Friedheim Converting Equipment is wholly dedicated  to  the
representation  of  Bobst  Group  machines  and  associated
ancillary added value products to the carton and corrugated
packaging  sectors.  Our new site in Redditch  incorporates
an enlarged training facility of almost 10,000 square feet.
Friedheim's  approach  to training  is  not  restricted  to
demonstrating  the technical aspects of  the  machinery  we
supply.   Our  objective  is to  enable  our  customers  to
improve  their own productivity by maximising the potential
of  the machines and equipment we supply.  We achieve  this
through  the employment of product specialists who are  all
experienced  in  production  environments.   This  training
centre,  supported  by our product specialists,  our  close
links with Bobst SA and our tooling businesses, provides  a
facility  for our customers which is unmatched anywhere  in
the  world.   Friedheim Converting Equipment  has  recently
launched  a catalogue sales initiative which will reinforce
its  standing in the market as a leading supplier of  parts
and  consumables  to  the carton and corrugated  converting
industries.

Friedheim Knife Services

Friedheim  Knife  Services supplies guillotine  knives  and
grinding services to the print finishing industries  around
London.  The company provides regular and frequent contacts
with  its customer base, which coincides with much  of  the
market served by Friedheim International in the South East,
thereby  generating  valuable market intelligence  for  our
machinery sales business.

Lasercomb Dies

Lasercomb  is one of Europe's leading suppliers  of  press-
ready  tooling  sets  for  use  in  the  carton  converting
industry.    Applications   are  predominantly   on   Bobst
machinery.  The close ties between the company and Bobst SA
enables  Lasercomb  to develop tooling which  exploits  the
full  potential of Bobst Autoplaten diecutters.   With  the
further  development of high speed diecutters, the  tooling
supplied  by  Lasercomb will play an increasingly  critical
role  in  enabling  our  customers to  attain  productivity
gains.

Lasercomb  continues  to invest in automated  manufacturing
processes,  designed  to  reduce  its  unit  costs   whilst
ensuring  that consistency of standards is maintained.   We
are currently investing in machine tools which will support
the development of tooling appropriate to the attainment of
higher speeds from the next generation of diecutters.

The  company  continues to develop long-term single  source
supply  agreements with major carton manufacturers.   These
agreements  enable  us  to  work closely  with  the  carton
manufacturers to create productivity-based partnerships.

Since  the  year-end  we  have begun  to  implement  a  die
manufacturing facility for the corrugated sector, with  the
aim  of  delivering the same level of service and expertise
to that which we offer to the carton industry.

Palatine

Palatine supplies embossing tools to the carton, label  and
greetings  card industries.  Palatine tooling is frequently
fitted  as  a  component of Lasercomb  products  and  often
applied on Bobst machinery.

Palatine  has  suffered from difficult trading  conditions,
particularly in the second half of the financial year.  The
traditional technologies and production methods  are  being
challenged as a result of the development of software which
enables computer numerically controlled ('CNC') engineering
processes  to imitate the processes previously executed  by
Palatine's skilled craftsmen. New competitors are  entering
this market placing new pressures on operating margins.

We  anticipated  the need for investment in CNC  technology
and have been successful in the implementation of automated
manufacturing  processes.  During the year we  restructured
the Palatine management team and integrated it more closely
with Lasercomb.

Current trading and prospects

Since  the  year  end  the order intake  in  our  machinery
businesses  has exceeded the level of the first quarter  of
our  last  financial  year.  Within the  tooling  divisions
trading  at Lasercomb is ahead of our forecasts.   Palatine
continues to experience pressure on margins.

In  May  2000,  Drupa, a major international  printing  and
packaging   machinery  exhibition  will   take   place   in
Dusseldorf.   This  exhibition, which is  held  every  four
years,  has traditionally provided a launching pad for  new
technological  developments  in  our  industry.   All   our
principals will be strongly represented.
Group  Profit  and  Loss  Account for  the  year  ended  30
September 1999


                                           1999          1998
                                          £'000         £'000
                                       (unaudit      (audited
                                            ed)             )
Turnover                                 57,780        65,338
Cost of sales                          (51,253)      (60,134)
Gross profit                              6,527         5,204
Administrative expenses                 (3,586)       (2,638)
Operating profit                          2,941         2,566
Profit    on   sale   of   freehold         967             -
properties
Reorganisation  and   restructuring       (889)             -
costs
Profit before interest and taxation       3,019         2,566
Interest receivable                          73           148
Interest payable                           (99)           (6)
Profit   on   ordinary   activities       2,993         2,708
before taxation
Tax    on    profit   on   ordinary          28         (839)
activities
Profit on ordinary activities after       3,021         1,869
taxation
Dividends on equity shares                (784)         (578)
Retained profit for the year              2,237         1,291
Retained in parent undertaking              985           416
Retained in subsidiary undertakings       1,252           875
                                          2,237         1,291
                                                             
Earnings per share (pence)                 32.3          22.1
Diluted earnings per share (pence)         29.0          22.1
Normalised   earnings   per   share        21.3          20.7
(pence)

Group Balance Sheet at 30 September 1999


                                           1999          1998
                                          £'000         £'000
                                     (unaudited)     (audited)
Fixed assets                                                 
                                                             
Tangible assets                           4,104         6,517
Intangible assets                         2,019         1,925
Investments                                   -            27
                                          6,123         8,469
Current assets                                               
                                                             
Stocks                                    4,495         6,259
Debtors                                  19,346        12,505
Cash at bank and in hand                  6,861         2,552
                                         30,702        21,316
Creditors:  amounts falling due        (20,042)      (15,169)
within one year
                                                             
Net current assets                       10,660         6,147
                                                             
Total assets less current                16,783        14,616
liabilities
                                                             
Provisions for liabilities and            (166)         (590)
charges
                                                             
Net assets                               16,617        14,026
                                                             
Equity capital and reserves                                  
                                                             
Called up share capital                   1,946         1,857
Reserves                                 14,671        12,169
Equity shareholders' funds               16,617        14,026

Group Cash Flows for the year ended 30 September 1999

                             
                                           1999          1998
                                          £'000         £'000
                                     (unaudited)    (audited)

Net   cash  inflow  from  operating       3,187         4,575
activities
                                                             
Returns on investment and servicing                          
of finance
Interest received                            73           148
Interest paid                              (99)           (6)
                                           (26)           142
Taxation                                                     
Corporation tax paid                    (1,156)         (533)
Capital  expenditure and  financial                          
investment
Payments to acquire investments               -           (5)
Payments to acquire tangible  fixed     (1,779)       (1,301)
assets
Reorganisation  and   restructuring       (889)             -
costs
Receipts  from  sales  of  freehold       4,581             -
premises
Receipts   from  sales   of   other         862           173
tangible fixed assets
                                          2,775       (1,133)
Acquisitions                                                 
Friedheim Knife Services business             -         (356)
The   Palatine  Engraving   Company       (200)       (1,398)
Limited
                                          (200)       (1,754)
                                                     
Equity dividends paid                     (625)         (481)
                                                             
Net cash inflow before financing          3,955           816
                                                             
Financing                                                    
Issue of ordinary share capital             354             -
                                                             
Increase in cash                          4,309           816
                                                             
Reconciliation of net cash flow  to
movements in net funds
Net funds at 1 October                    1,552         1,736
Issue  of  Convertible  Loan  Notes           -       (1,000)
(non-cash  movement)
Increase in cash                          4,309           816
                                                             
Net funds at 30 September                 5,861         1,552
                                                             
Net funds comprise:                                          
Cash at bank and in hand                  6,861         2,552
Convertible Loan Notes                  (1,000)       (1,000)
                                                             
                                          5,861         1,552
Notes:

1. The  above financial information does not constitute  full
   accounts  within  the  meaning  of  Section  254  of   the
   Companies  Act  1985.  This Preliminary  announcement  was
   approved  by  the Board of Directors on 31  January  2000.
   Full  accounts for the year ended 30 September  1998  have
   been  filed  with the Registrar of Companies and  received
   an  unqualified  audit  report which  did  not  contain  a
   statement   under  Sections  237(2)  or  237(3)   of   the
   Companies  Act 1995.  The Annual Report and  Accounts  for
   the  year  ended  30  September 1999  will  be  posted  to
   shareholders  by 31 March 2000 and will be available  from
   the  Company's registered office at 2 Meir Road, Old Forge
   Drive,  Park Farm North, Redditch B98 7SY, from  the  date
   of issue.

2. Reorganisation  and  restructuring                        
   costs comprise:
                                           1999          1998
                                          £'000         £'000
                                    (unaudited)      (audited)

   Reorganisation, restructuring  and     (686)             -
   relocation of group businesses
   Palatine  Engraving  restructuring     (146)             -
   costs
   Termination of joint ventures           (57)             -
                                          (889)             -
   Profit  on  disposal  of  freehold       967             -
   properties

   The  above  exceptional  items  have  had  the  effect  of
   reducing the tax charge for the year by £824,000  (1998  -
   £Nil)  mainly relating to deferred taxation provisions  no
   longer required.
   
3. Basic  earnings per share has been calculated by  dividing
   the  profit  attributable to shareholders by the  weighted
   average  number of shares in issue of 9,356,601 (September
   1998  -  8,442,105).  In arriving at diluted earnings  per
   share   appropriate   adjustments  have   been   made   in
   accordance  with  Financial Reporting Standard  Number  14
   which  came  into  effect  during  the  reporting  period.
   Comparative   figures  have  been  adjusted   accordingly.
   Normalised  earnings  per share represents  fully  diluted
   earnings  per  share  stated  before  the  effect  of  the
   amortisation  of  goodwill of £106,000 (September  1998  -
   £7,000) and the after tax effect of the exceptional  items
   referred to in note 2.
   
4. A  second interim dividend of 5.0 pence per Ordinary share
   is  payable  by 17 March 2000 in lieu of a final  dividend
   to  members  on  the register on 11 February  2000.   This
   brings  the  total dividend payable for the  year  to  8.3
   pence  per share amounting to £784,000, (1998 - 6.5  pence
   per Ordinary share amounting to £578,000).


5. Cash    inflow   from    operating                        
   activities comprises:
                                           1999          1998
                                          £'000         £'000
                                       (unaudited)     (audited)

   Operating profit                       2,941         2,566
   Amortisation of goodwill                 106             7
   Depreciation of fixed assets             866           835
   Profit on sale of fixed assets         (162)         (137)
   Amount written off investments            27             -
   Decrease/(increase) in stocks          1,764          (57)
   (Increase)/decrease in debtors       (7,774)         3,439
   Increase/(decrease) in creditors       5,419       (2,078)
   Net  cash  inflow  from  operating     3,187         4,575
   activities




                                                                                                                                                                                                  

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