Final Results

Associated British Engineering PLC
3 July 2001

                              A*B*E
                        CHAIRMAN'S STATEMENT
 
The Group made a pre-tax loss of £156,000, which includes a loss of £453,000
in respect of the continuing operations. This compares with a Group pre-tax
loss of £3,335,000 last year of which £209,000 was in respect of continuing
operations. 

The Group has taken action to stem these losses by reducing the central
overhead costs and restructuring a trading division of British Polar Engines,
which incurred operating losses of £203,000 in the year ended 31 March 2001.
The cost of this restructuring is £256,000. Costs of £156,000 were incurred
during the year and are included in these accounts and £100,000 has been
incurred after the balance sheet date. These actions are designed to enable
the Group to trade profitably. 

On 14 December 2000 the Company announced that it had acquired the fixed
assets and business of Kelvin Diesels, a similar business to British Polar
Engines. This business has now been successfully integrated into the
operations of British Polar Engines and we are experiencing some success by
reinvigorating the sales of Kelvin. 

On 14 March 2001 the shareholders approved the sale of the site at Havant and
the proceeds were received just prior to the year-end. This has continued the
policy of realising cash from assets which are surplus to the Group's
operating requirements. The net cash inflow of the Group of £794,000 for the
year allowed the Group to increase its net cash resources to £1,991,000 at
the year-end. 

There have also been a number of Board changes. On 31 May 2000 Michael Barry
ceased to be Managing Director and resigned from the Board and on 31 October
2000 Jonathan Davies retired as a director and I became Chairman. These two
retiring directors had between them over 40 years experience of the Group and
I would like to thank them for their commitment over such a long period. 

The Board continues to review opportunities for developing the Group but in
the current economic climate we are being careful about the types of business
in which we wish to become involved. We are however giving serious
consideration to those situations, which we believe, may be of interest to
our shareholders. We will keep shareholders informed of developments. 

I would like to finish by thanking our loyal employees for their dedicated
commitment to the continuing operations in a changing environment. It is a
measure of their commitment that we can continue to develop the operations
and consider opportunities despite these changes. 

Rupert Pearce Gould 
Chairman 


                 GROUP PROFIT AND LOSS ACCOUNT 
                FOR THE YEAR ENDED 31 MARCH 2001 
          
                                                   2001       2000
                                                  £000s      £000s
 
Turnover            - Continuing operations        3,812      3,363
                    - Discontinued operations          -     20,027
                                                   3,812     23,390

Operating loss      - Continuing operations         (504)     (334)
                    - Discontinued operations          -      (713)
                                                    (504)   (1,047)
 
Exceptional costs on 
the sale of business                                   -      (117)

Exceptional profit/(loss) on
discontinued operations                              297    (1,618)

(Loss)/profit on ordinary 
activities before finance costs 
                    - Continuing operations         (504)     (334)
                    - Discontinued operations        297    (2,448)
                                                    (207)   (2,782)

Net finance income/(costs) 
                    - Continuing operations           51       125
                    - Discontinued operations          -      (678)
                                                      51      (553)
   
(Loss)/profit on ordinary 
activities before taxation 
                    - Continuing operations         (453)     (209)
                    - Discontinued operations        297    (3,126)
                                                    (156)   (3,335) 

Taxation                                              (5)        -
Loss on ordinary activities after taxation          (161)   (3,335)
Equity minority interest                               -       (23)
Loss for the financial year                         (161)   (3,358)
Non-equity dividends                                 (51)      (51)
Retained loss                                       (212)   (3,409)

Loss per ordinary share 
 - Continuing operations                            (39)p     (20)p

 - Basic                                            (16)p    (260)p

Dividends per share 
- Cumulative preference shares (2000:paid)            7.0p     7.0p 
- Cumulative redeemable preference shares of£1 each 
  (2000:paid)                                         8.0p     8.0p 
- Ordinary shares of £2 each                            -        -

The Company does not have distributable reserves and is, therefore, unable to
pay the preference dividends.


               STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 
                    
                                                     2001     2000 
                                                    £000s    £000s

Loss for the financial year                         (161)   (3,358)
Foreign exchange adjustment                           22       101
Unrealised loss on the revaluation of the 
fixed asset investment properties                      -      (370)

Total recognised gains and losses for the year      (139)   (3,627) 

The foreign exchange adjustment represents exchange gains during the year
relating to the restatement of the balance sheet and results of Danway
Limited, incorporated in the Cayman Islands, using the exchange rate at 31
March 2001 (2000 using the exchange rate at 31 March 2000). 


             RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 


                                                     2001     2000
                                                    £000s    £000s

Total recognised gains and losses for the year 
     - as above                                     (139)   (3,267)
Goodwill previously eliminated against reserves        -     1,120 
Dividends paid                                         -       (51)
Other reserves disposed of                             -       (25)
Net decrease in Shareholder's funds                 (139)   (2,583)
Shareholders' funds at 1 April 2000                4,126     6,709
Shareholders' funds at 31 March 2001               3,987     4,126



                              GROUP BALANCE SHEET 
                              AS AT 31 MARCH 2001 
                                                                             
                                                     2001     2000     
FIXED ASSETS                                        £000s    £000s
                              
Tangible assets                                      734       724      
  
CURRENT ASSETS                                                             

Stock                                              1,751     1,389    
Properties held for sale                               -       921      
Debtors - amounts falling due within one year      1,051     1,685    
Cash at bank and in hand                           2,019     1,203    
                                                   4,821     5,198
    
Creditors - amounts falling due within one year    1,519     1,721    

Net current assets                                 3,302     3,477    
  
Total assets less current liabilities              4,036     4,201    
Creditors - amounts falling due after one year        17        38       
Provisions for liabilities and charges                32        37       
Net assets                                         3,987     4,126    

CAPITAL AND RESERVES                                                       
 
Called up share capital                            3,339     3,339    
Share premium account                              5,038     5,038    
Other reserves                                        11        11       
Profit and loss account                           (4,401)   (4,262)  
Equity shareholders' funds                         3,224     3,414    
Non-equity shareholders' funds                       763       712      
                                                                             
Total shareholders' funds                          3,987     4,126 


                         GROUP CASH FLOW STATEMENT 
                       FOR THE YEAR ENDED 31 MARCH 2001


                                                    2001     2000 
                                                   £000s    £000s
OPERATING ACTIVITIES 
Cash flow from operating activities                 (755)     (498) 

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 

Finance income received                               56       191
Finance costs paid                                    (3)      702
Finance cost element of finance lease rental payments (2)      (42)
Preference dividends paid                              -       (51)

Net cash flow from returns on investments and 
servicing of finance                                  51      (604)

TAXATION 

UK Taxation paid                                       -        (5)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 

Purchase of tangible fixed assets                    (83)     (213)
Net proceeds on sale of tangible fixed assets         45         8
Net cash flow from capital expenditure and
 financial investment                                (38)     (205)

ACQUISITIONS AND DISPOSALS 

Acquisition of Kelvin Diesels                       (300)        -
Sale of the Middle East operations 
and repayment of intercompany debt                   121     6,507
Discontinued catering equipment operations           889        77
Properties held for sale                             885         -
Net cash flow from disposals                       1,595     6,584

Cash inflow before financing                         853     5,272

FINANCING 

Decrease in debt                                     (12)    (384)
Capital element of finance lease repayments          (47)    (110)
                                                     (59)    (494)
Increase in cash in the year                         794    4,778


          ANALYSIS OF TURNOVER, LOSS BEFORE TAXATION AND NET ASSETS 

                                            (Loss)/profit
                            Turnover        before taxation       Net assets
                         2001     2000    2001         2000     2001      2000
                        £000s     £000s   £000s        £000s   £000s     £000s
British Polar Engines   3,812      3,363   (161)          53    2,304     2,007
Common expenses/ 
net assets                  -          -   (343)        (387)   1,683     2,119
Continuing operations   3,812      3,363   (504)        (334)   3,987     4,126

Middle East operations      -     12,844      -          549        -         -
Catering equipment          -      7,183      -         (610)       -         -
Common expenses             -          -      -         (652)       -         -
Discontinued operations     -     20,027      -         (713)       -         -

Turnover/net assets     3,812     23,390                        3,987     4,126
Operating loss                             (504)      (1,047)
Exceptional items: 
 - Costs of sale                              -         (117)
 - Discontinued operations                  297       (1,618)
Net finance income/(costs)                   51         (553)
Loss before taxation                       (156)      (3,335)

Notes 
1. The Group's full statutory accounts for the year ended 31 March 2001 have
   not been reported upon by the Auditors nor delivered to the Registrar of
   Companies. The 2000 figures are audited. The Auditors have agreed to the
   release of this statement. 
2. The comparative figures for the year ended 31 March 2000 are abridged from
   the accounts for that year and do not constitute full accounts within the
   meaning of Section 240 of the Companies Act 1985 (as amended). Statutory
   accounts for that period, on which the Auditors gave an unqualified opinion,
   have been delivered to the Registrar of Companies. 

The board does not recommend a dividend on ordinary shares for the year. 
(2000 Nil). 

R A Pearce Gould 

Enquiries: 
Mr R A Pearce Gould (Chairman) 
Mrs K M Hill (Finance Director) 
Tel: [phone]