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Wescol Group PLC (WCL)

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Monday 09 April, 2001

Wescol Group PLC

Interim Results

Wescol Group PLC
9 April 2001


                       Wescol Group plc
                               
    Interim Results for the 6 months ended 31 January 2001


CHAIRMAN AND CHIEF EXECUTIVE'S INTERIM STATEMENT


The  Wescol Group is starting to emerge from the disappointing
results of last year.

The  domestic  market  for structural steel  continues  to  be
highly  competitive,  but the new commercial  and  operational
teams  set  in  place since August 2000 are  now  moving  your
company forward in a positive manner.

This  is set against the background of a strengthening forward
order  book  together with the ongoing implementation  of  the
Recovery Strategy, details of which were set out in the Annual
Report.

The  Group  continues to benefit from its link with our  major
shareholder Salzgitter A.G.

Financial Summary

The first half year results for the Group are in line with the
original  projections, which had taken into account  the  fact
that  as  anticipated by the Board a return  to  profitability
would  take several months to attain. The results also reflect
the  significant  restructuring costs which  were  necessarily
incurred upon implementation of the Recovery Strategy and  the
re-focusing of the business.

However,  with a higher than budgeted order book at  realistic
margins  there are clear signs that the Group is returning  to
overall  profitability after the previous years loss  of  £7.5
million.

Turnover  for the 6 months ended 31st January 2001  was  £33.0
million (2000 - £46.1 million).

Operating  losses  were  £1.3 million  (2000  -  £1.5  million
profit).

Interest charges were £0.46 million (2000 - £0.25 million) and
in  addition  there were exceptional charges of £1.05  million
incurred in the main due to the reorganisation at Worcester.


Review of the period:

Wescol Glosford

The  order intake in the period totalled £39 million  (2000  -
£23 million).

This  is  a  most  satisfactory  increase  and  reflects   the
company's  commercial ability to operate in  difficult  market
conditions.  This is further demonstrated through some of  the
high  profile  projects  we are presently  undertaking,  these
include  the Guinness Headquarters, Westburton power  station,
Robert  Gordon University, Glasgow and the Lion Plaza  in  the
City  of London.  Following the successful completion  of  the
Newcastle  United F.C. stadium Wescol Glosford has  also  been
awarded  the  rebuilding  of Preston North  End  and  Charlton
Athletic football clubs stadiums.

The  refocus  of  attention on to larger and more  prestigious
projects has been beneficial with a number of high value added
projects being secured.

Production capacity has now been rationalised in line with the
Recovery Strategy and fabrication is now directed through  the
factories  at Halifax, the recently redeveloped Brierley  Hill
and Hereford, which is currently being updated.

The sale of the redundant Worcester site is nearing completion
and  the proceeds from this sale are anticipated to exceed the
cash expended on its closure.

Some  major opportunities in the group export market have been
identified and these are being evaluated.

Westok

In  the  2000  Annual  Report reference was  made  to  a  full
appraisal of the future of this company within the Group.

Since that time the profitability of this company has improved
significantly  and  it  is against this background  that  your
Board is considering the several approaches it has received to
purchase this company.

Marbank

Marbank  Construction, Wescol's design and  build  contractor,
has  a good order book and will make a reasonable contribution
to the overall Group result.

Dividend

No interim dividend is proposed in reflection of the half year
results.  The resumption of dividend payment will depend on  a
return to overall profitability.

Management Changes

Richard Hill, will be stepping down as Chief Executive  as  of
30  April  2001 due to ill health. An announcement  concerning
the  appointment of his successor will be made in  the  coming
weeks.

Prospects

The  Group has a strong and growing order book of good quality
work which should impact significantly on the second half year
performance.   The  Recovery Strategy is in progress  and  the
capital  disposals  programme and efficiency  saving  measures
planned are in line with expectations.

Management expect some further costs of the Recovery  Strategy
to  be  incurred  in the second half year but  also  expect  a
significantly better overall performance.


Peter H Price                                Richard Hill
Chairman                                     Chief Executive



Enquiries:

Peter Price, Chairman                        01422 319 500
Wescol Group plc

Oliver Jones/Toby Wilkinson                  020 7353 9203
Bell Pottinger Financial




CONSOLIDATED PROFIT AND LOSS ACCOUNT
31 January 2001


                      6 months to 31 January unaudited  6 months   12 months
                                                              to          to
                                                                            
                           Before Exceptional          31 January     31 July
                      exceptional       items               2000        2000
                            items    (note 1)    Total Unaudited     Audited
                 Note       £'000       £'000    £'000     £'000       £'000
Group turnover                                                              
 -continuing                                                                
 operations                32,844           -   32,844    46,127      83,478
Cost of sales             (28,963)       (210) (29,173)  (39,465)    (79,248)
                        ---------   --------- -------- ---------   ---------
                                                                            
Gross profit                3,881        (210)   3,671     6,662       4,230
Operating                                                                   
 expenses                  (5,136)       (844)  (5,980)   (5,175)    (11,152)
                        ---------   --------- -------- ---------   ---------
                                                                            
Group                                                                       
 operating                                                                  
 (loss)/profit                                                              
 -continuing                                                                
 operations               (1,255)     (1,054)  (2,309)     1,487     (6,922)
Net interest                (458)          -     (458)      (248)      (588)
                        ---------   --------- -------- ---------   ---------
                                                                            
(Loss)/profit on                                                            
 ordinary                                                                   
 activities                                                                 
 before taxation          (1,713)     (1,054)  (2,767)     1,239     (7,510)
Tax on                                                                      
 (loss)/profit                                                              
 on ordinary                                                                
 activities        2           -           -        -       (372)     1,583
                        ---------   --------- -------- ---------   ---------
                                                                            
(Loss)/profit on                                                            
 ordinary                                                                   
 activities                                                                 
 after taxation           (1,713)     (1,054)  (2,767)       867     (5,927)
Minority                                                                    
 interests                                                                  
 - equity                    (25)           -     (25)       (41)       (25)
                        ---------   --------- -------- ---------   ---------
                                                                            
(Loss)/profit                                                               
 attributable to                                                            
 shareholders             (1,738)     (1,054)  (2,792)       826     (5,952)
Dividends - on                                                              
 equity shares                 -           -        -          -          -
                        ---------   --------- -------- ---------   ---------
                                                                            
                                                                            
Retained                                                                    
 (loss)/profit                                                              
 for the period           (1,738)     (1,054)  (2,792)       826     (5,952)
                        =========   ========= ======== =========   =========
                                                     
                                                                            
                                                                            
Earnings per                                                                
 share (pence)                                                              
 Basic and                                                                  
 diluted           3      (3.1)       (1.9)    (5.0)        1.5     (10.7)
                        =========   ========= ======== =========   =========
                        
                                                                            


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                            6 months to    6 months to       12 months to
                             31 January     31 January            31 July
                                   2001           2000               2000
                              Unaudited      Unaudited            Audited
                                  £'000          £'000              £'000
                                                                         
(Loss)/profit for                                                        
 the financial                                                           
 period                          (2,792)           826            (5,952)
Group currency                                                           
 translation gain                     -              -                41
                              ---------      ---------          ---------
                                                                         
                                                                         
Total recognised                                                         
 (losses)/gains                                                          
 relating to the                                                         
 period                         (2,792)            826            (5,911)
                              =========      =========          =========
                                                                         

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                          6 months to      6 months to      12 months to
                      31 January 2001  31 January 2000      31 July 2000
                            Unaudited        Unaudited           Audited
                                £'000            £'000             £'000
                                                                        
Total recognised                                                        
 (losses)/gains                                                         
 relating to the                                                        
 period                       (2,792)              826           (5,911)
Dividends                           -                -                -
                            ---------        ---------         ---------
                                                                        
                                                                        
(Decrease)/increase                                                     
 in shareholders'                                                       
 funds                        (2,792)              826           (5,911)
Opening                                                                 
 shareholders' funds          11,416            17,327           17,327
                            ---------        ---------         ---------
                                                                        
                                                                        
Closing                                                                 
 shareholders' funds           8,624            18,153           11,416
                            =========        =========         =========
                                                                        


SUMMARISED CONSOLIDATED BALANCE SHEET
31 January 2001

                                                                        
                                    At 31        At 31             At 31
                                  January      January              July
                                     2001         2000              2000
                                Unaudited    Unaudited           Audited
                                    £'000        £'000             £'000
                                                                        
Fixed assets                             
Intangible assets -                                              
 Goodwill                              33           34                34 
Tangible assets                    14,857       14,532            15,389
                                ---------    ---------         ---------
                                                                        
                                                                        
                                   14,890       14,566            15,423
                                ---------    ---------         ---------
                                                                        
                                                                        
Current assets                           
Stocks                                244          244               244
Debtors due within one                                                  
 year                              22,670       34,319            26,728
Cash at bank and in hand                5            -               404
                                ---------    ---------         ---------
                                                                        
                                                                        
                                   22,919       34,563            27,376
Creditors : Amounts                                                     
 falling due within one                                                 
 year                             (27,657)     (28,074)          (29,472)
                                ---------    ---------         ---------
                                                                        
                                                                        
Net current                                                             
 (liabilities)/assets              (4,738)       6,489            (2,096)
                                ---------    ---------         ---------
                                                                        
                                                                        
Total assets less current                                               
 liabilities                       10,152       21,055            13,327
                                                                        
Creditors : Amounts                                                     
 falling due after more                                                 
 than one year                     (1,273)      (1,975)           (1,681)
                                                                        
Provisions for                                                          
 liabilities and charges              (28)        (750)              (28)
                                ---------    ---------         ---------
                                                                        
                                                                        
Net assets                          8,851       18,330            11,618
                                =========    =========         =========
                                                                        
                                                                        
Capital and reserves                8,624       18,112            11,416
                                                                        
Equity minority interests             227          218               202
                                ---------    ---------         ---------
                                                                        
                                                                        
                                    8,851       18,330            11,618
                                =========    =========         =========
                                                                        


SUMMARISED CONSOLIDATED CASH FLOW STATEMENT

                              6 months to  6 months to      12 months to
                               31 January   31 January           31 July
                                     2001         2000              2000
                                Unaudited    Unaudited           Audited
                                    £'000        £'000             £'000
                                                                        
Net cash outflow from                                                   
 operating activities              (1,244)      (4,965)          (3,610)
Returns on investment and                                               
 servicing of finance                (458)        (248)            (588)
Taxation paid                           -         (777)            (299)
Capital expenditure and                                                 
 financial investment                (225)        (481)          (1,513)
Equity dividends paid                   -         (668)            (668)
Financing                          (1,266)        (234)          (1,116)
                                ---------    ---------         ---------
                                                                        
Decrease in cash                  (3,193)       (7,373)          (7,794)
                                =========    =========         =========
                                                                        

                               
RECONCILIATION OF OPERATING (LOSS) / PROFIT TO NET CASH FLOW
FROM OPERATING ACTIVITIES
                               
                          6 months to 31  6 months to      12 months to
                                 January   31 January           31 July
                                    2001         2000              2000
                               Unaudited    Unaudited           Audited
                                   £'000        £'000             £'000
                                                                       
Operating (loss)/profit           (2,309)       1,487           (6,922)
Amortisation of goodwill               1            -                2
Depreciation of tangible                                               
 fixed assets                        647          624            1,249
Impairment of tangible                                                 
 fixed assets                        250            -                -
Currency translation                                                   
 gain                                  -            -               41
(Profit) on disposal of                                                
 tangible fixed assets                 -            -               (9)
Working capital                                                        
 movements
- Debtors                          4,058      (10,339)          (2,365)
- Creditors                       (3,891)       3,263            4,394
                               ---------    ---------         ---------
                                                                       
Net cash outflow from                                                  
 operating activities             (1,244)      (4,965)          (3,610)
                               =========    =========         =========
                                                                       



NOTES:


1.   OPERATING EXCEPTIONAL ITEMS

The  operating  exceptional items incurred during  the  period
ended  31  January  2001 comprise costs  associated  with  the
Recovery  Strategy,  and in particular  in  this  period,  the
closure  of  the Worcester site and the associated  redundancy
costs.   All costs connected to the further clarification  and
resolution of certain contract matters from prior periods  are
recorded within pre-exceptional items.


2.   TAXATION

                             6 months to  6 months to      12 months to
                              31 January   31 January           31 July
                                    2001         2000              2000
                               Unaudited    Unaudited           Audited
                                   £'000        £'000             £'000
                                                                       
UK Corporation tax                      -        (372)              861
Deferred tax                            -           -               710
                               ---------    ---------         ---------
                                                                       
Group tax                               -        (372)            1,583
                               =========    =========         =========
                                                                       

The Group has tax losses carried forward of approximately £7.4
million at 31 January 2001.


3.   EARNINGS PER SHARE

Basic  loss  earnings  per share has been  calculated  on  the
weighted average number of ordinary shares in issue during the
relevant  period.   For  diluted  earnings  per  share,  where
earnings  are positive the weighted average number of ordinary
shares  in  issue  is  adjusted to assume  conversion  of  all
dilutive potential ordinary shares, being sharesave and  share
option  schemes,  where the exercise price is  less  than  the
average  market price of the company's ordinary shares  during
the period.

4.   RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                             6 months to  6 months to      12 months to
                              31 January   31 January           31 July
                                    2001         2000              2000
                               Unaudited    Unaudited           Audited
                                   £'000        £'000             £'000
                                                                       
Change in cash                    (3,193)      (7,373)           (7,794)
Cash outflow from debt                                                 
 and lease finance                 1,266          501             1,116
                               ---------    ---------         ---------
                                                                       
                                                                       
Change in net debt from                                                
 cash flows                       (1,927)      (6,872)           (6,678)
Inception of finance                                                   
 leases                             (140)        (267)             (443)
                               ---------    ---------         ---------
                                                                       
                                                                       
Change in net debt                (2,067)      (7,139)           (7,121)
Opening net debt                  (9,548)      (2,427)           (2,427)
                               ---------    ---------         ---------
                                                                       
                                                                       
Closing net debt                 (11,615)      (9,566)           (9,548)
                               =========    =========         =========
                                                                       



5.   ANALYSIS OF NET DEBT                      
                                                                       
                                                                       
                                         Inception                   31
                    1 August      Cash  of finance  Exchange    January
                        2000      flow      leases  movement       2001
                       £'000     £'000       £'000     £'000      £'000
Cash at bank and in                                                    
 hand                    404      (399)          -         -          5
Bank overdraft        (6,509)   (2,794)          -         -     (9,303)
                    --------  --------   ---------  --------  ---------
                                                                       
                                                                       
Cash                  (6,105)   (3,193)          -         -     (9,298)
                                                                       
Loan notes              (644)      644           -         -          -
Bank loans            (1,875)      250           -         -     (1,625)
Finance leases          (924)      372        (140)        -       (692)
                    --------  --------   ---------  --------  ---------
                                                                       
                                                                       
Borrowings            (3,443)    1,266        (140)        -     (2,317)
                    --------  --------   ---------  --------  ---------
                                                                       
                                                                        
Net debt              (9,548)   (1,927)       (140)        -    (11,615)
                    ========  ========    ========  ========   ========
                                                                       

6.   INTERIM REPORT

      This interim report was approved by the Board on 6 April
    2001.   It  has  been  prepared using accounting  policies
    that  are  consistent with those adopted in the  statutory
    accounts for the year ended 31 July 2000.

      The  figures  for the year to 31 July 2000 were  derived
    from  the statutory accounts for that year.  The statutory
    accounts  for  the  year  ended 31  July  2000  have  been
    delivered  to the Registrar of Companies and  received  an
    audit  report  which was unqualified and did  not  contain
    statements  under  s237(2) or (3)  of  the  Companies  Act
    1985.




INDEPENDENT REVIEW REPORT TO WESCOL GROUP PLC


Introduction

We have been instructed by the company to review the financial
information set out on pages 3 to 9.  We have read  the  other
information  contained  in the interim report  and  considered
whether  it  contains any apparent misstatements  or  material
inconsistencies with the financial information.

Directors' responsibilities

The   interim  report,  including  the  financial  information
contained  therein, is the responsibility  of,  and  has  been
approved by, the directors.  The directors are responsible for
preparing  the interim report in accordance with  the  Listing
Rules  of the Financial Services Authority which require  that
the  accounting  policies  and  presentation  applied  to  the
interim  figures  should be consistent with those  applied  in
preparing  the  preceding  annual accounts  except  where  any
changes, and the reasons for them, are disclosed.

Review work performed

We  conducted our review in accordance with guidance contained
in  Bulletin 1999/4 issued by the Auditing Practices Board for
use  in the United Kingdom.  A review consists principally  of
making  enquiries of group management and applying  analytical
procedures   to  the  financial  information  and   underlying
financial  data  and,  based thereon,  assessing  whether  the
accounting  policies and presentation have  been  consistently
applied, unless otherwise disclosed.  A review excludes  audit
procedures  such  as  tests of controls  and  verification  of
assets,  liabilities  and transactions.  It  is  substantially
less  in  scope  than  an audit performed in  accordance  with
United  Kingdom  Auditing Standards and therefore  provides  a
lower level of assurance than an audit.  Accordingly we do not
express an audit opinion on the financial information.

Review conclusion

On  the  basis of our review we are not aware of any  material
modifications that should be made to the financial information
as presented for the six months ended 31 January 2001.



RSM Robson Rhodes
Chartered Accountants

Birmingham, England
6 April 2001



                                                                                
                                                                                
                                                                                
   

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