Interim Results

Associated British Engineering PLC
29 December 2003

                       Associated British Engineering PLC

                        Unaudited Results for six months

                              To 30 September 2003








Chairman's Statement




Interim Results to 30 September 2003

The results from the only operating company in the Group, British Polar Engines
has been slightly better in this last period, and the after tax profit is
£95,000 (a loss of £292,000 for the year ended 31 March 2003). The cash within
the Company has also risen, primarily as a result of the proceeds from the sale
of the property at St. Helens, which was approved earlier in the year. The gain
on this sale over the book value, and after expenses was £ 178,000.


The Board has also continued to try and reduce the central costs of the Company,
and, regretfully, had to end the employment of the Finance Director, Kirsten
Good, which has been announced. Kirsten had been with the Company for many
years, and I would like to thank her for all of her hard work and particularly
the excellent way in which she helped in the hand over of her responsibilities.
All the costs incurred in connection with her departure have been expensed in
these half-year results, with the exception of the MFR deficit on the ABE
section of the pension scheme, of which she was the only member. This sum will
take a few months to calculate. At the same time, Colin Weinberg was appointed a
non- executive member of the Board, and he will be supervising the finance
function. We have also engaged a firm of Chartered Accountants to prepare the
management accounts.


The principal focus of the Board is to resolve the pension situation, so that
the Company can proceed with potential acquisitions. The negotiations with the
management of British Polar are continuing in a satisfactory way, but also
cannot be concluded until a compromise is reached with the Trustees of the
pension scheme. Whilst the talks for this compromise are underway in earnest, it
will be a few more months before a clearer picture emerges.


The Board will continue to take all the steps it can to achieve this compromise,
and proceed with the sale of British Polar, so that it can realise any potential
within the Company.













Associated British Engineering Plc

Consolidated Profit and Loss Account for the period ended 30 September 2003

                                                                                    £'000's          £'000's

                                                                              Six months to       Six months
                                                                                    30/9/03          30/9/02
Turnover                                                                               1540             1241
Operating loss                                                                         (95)            (119)
Profit on sale of property                                                              178                0
Profit/(loss) on ordinary activities before finance                                      83            (119)
costs
Net finance income                                                                       12               18
Profit/(loss) on ordinary activities before taxation                                     95            (101)
Taxation                                                                                  0                5
Profit/(loss) on ordinary activities after taxation                                      95             (96)
Appropriation in respect of non-equity shares                                          (26)             (26)
Retained profit/(loss)                                                                   69            (122)







Associated British Engineering Plc

Consolidated Balance Sheet as at 30 September 2003

                                                                        £'000's     £'000's          £'000's

                                                                        30/9/03     30/9/02          31/3/03
FIXED ASSETS
Tangible fixed assets                                                       450         492              473

CURRENT ASSETS
Stock                                                                      1165        1285             1279
Property held for resale                                                      0         120              138
Debtors-amounts falling due within                                          633         696              621
one year
Investments                                                                  30           0                0
Cash at bank and in hand                                                   1439        1285             1138
                                                                           3267        3386             3176
Creditors - amounts falling due                                             712         762              734
within one year
Net Current assets                                                         2555        2624             2442
Total assets less current                                                  3005        3116             2915
liabilities
Creditors - amounts falling due                                               9          13               10
after one year
Provisions for liabilities and                                               18          24               22
charges
Net assets                                                                 2978        3079             2883
CAPITAL AND RESERVES
Called up share capital                                                    3339        3339             3339
Share premium account                                                      5038        5038             5038
Other reserves                                                               11          11               11
Profit and loss account                                                  (5410)      (5309)           (5505)
Equity shareholders' funds                                                 2087        3079             2018
Non-equity shareholders' funds                                              891         840              865
Total shareholders' funds                                                  2978        3079             2883





                        Unaudited Results for six months

                              To 30 September 2003


The calculation of profit/(loss) per ordinary share is based on:

2003 profit as per accounts £95,000

Weighted average number of shares 1,313,427

Profit; pence per share 5.2p

2002 loss as per accounts (£122,000)

Weighted average number of shares 1,313,427

Loss; pence per share (9p)






 1. This interim report has been prepared in accordance with the accounting
    policies adopted in the latest published accounts. This interim report
    neither been audited nor reviewed by our auditors.

 2. As required by Financial Reporting Standard 4 the non-equity dividends have
    been charged to the profit and loss account and then added back to reserves
    because the company does not have sufficient reserves to make this payment.
    The cumulative amount of the preference dividends unpaid as at 30 September
    2003 was £179,000.

 3. Included in the profit for the period is the profit (£178,000) arising on 
    the sale of the St Helen's property, which was held on the 31 March 2003 
    balance sheet as a property held for resale.

 4. The comparative figures for the year to 31 March 2003 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.



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