Interim Results

Aram Resources PLC
3 November 2000


ARAM RESOURCES PLC ('Aram' or 'the Company')

Interim Results for the six months ended 30 June 2000

Chairman's Statement

I am pleased to report on another six months of progress to 30 June 2000.  Our
quarry at Carnsew, supplying aggregate, blacktop and ready mixed concrete,
which has been the core of our profitability since listing, has now been
joined by contributions from Runcorn, and in the last few months from Irlam,
Newhaven and Penrhyn sites and shipments from the West of England Quarry.  
This currently leaves us four wharves to bring on stream at Southampton,
Portland, Truro and Plymouth, which we intend to undertake during 2001.

Despite the substantial costs of preparatory works and overheads on these new
sites, we have achieved an operating profit of £277,000 against £336,000 in
the first half of 1999, on sales of £2,123,000.  Profit before taxation was
£155,000 against £123,000 in the same period last year.  In this period of
expansion your Board does not consider it appropriate to recommend an interim
dividend.

Tangible fixed assets increased to £28,147,000 from £26,074,000 at the end of
1999, principally as a result of the further development of our wharves. 
Total net assets increased to £17,693,000 from £17,509,000 at the end of 1999.

Since we wrote to you in May, our satellite coating plant at Newhaven has
become fully operational.  We have leased a jetty at Penrhyn, North Wales to
distribute Welsh slate and other minerals to wider markets.  Following
completion of construction works at West of England, we are now loading ships
for supplies to our own wharves and are building up capacity to supply markets
in Europe.  Enquiries from European customers indicate that the European
market will have demand for substantial tonnages building up over the next two
years which would necessitate the installation of plant capable of 2 million
tonnes per annum processing.  The planning permission to utilise the void
space created by our operations in the first part of Carnsew Quarry as a
landfill site is following its course and I hope to report on the outcome in
my next report.

Outlook

With plans for developing our sites at Southampton, Plymouth, Portland and
Truro where sites are secured, and installing increased crushing capacity at
West of England, we have a full programme of works in hand to allow our longer
term strategy to come to fruition.  Whilst sales in the third quarter of 2000
were adversely affected by the wet weather, we are encouraged by current
demand for our products and anticipate good order levels at all sites for the
rest of the year and thereafter, in part, due to the Government's commitments
regarding road improvements.

People

May I close by thanking all our staff for their efforts over the year to date.
 I would like to also express the Company's grateful thanks to Giles Nixon
whose retirement from the Board was announced in September.  Giles'
considerable contribution to Aram and the industry, over 40 years, has
benefited us and we wish him well in his retirement.
 
E C DILLEY
Chairman

3 November 2000




UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the six months ended 30 June 2000


                    Note   6 months to         6 months to         Year to
                           30 June 2000        30 June 1999        31 December
                                                                   1999       
                           £000's              £000's              £000's
                                          
Turnover              1    2,123              1,767              4,722
Cost of sales             (1,634)            (1,209)            (3,220)
                                          
Gross profit                 489                558              1,502
                                          
Administrative 
expenses                    (473)              (222)              (779)
Exceptional income    2      261                 -                  -         
  
                                          
Operating profit             277                336                723
                                          
Net interest                (122)              (213)              (358)
                                          
Profit on ordinary 
activities before taxation   155                123                365
                                          
Tax on profit on ordinary 
activities                    -                  -                  -
                                          
Profit for the financial 
year                         155                123                365
                                          
Dividends: equity           (27)                (27)              (117)
           non-equity         -                 (56)               (54)
                                          
Profit transferred to 
reserves                     128                 40                194
                                          
Basic earnings per 
share                 3     2.27p              2.95p              5.70p
Diluted earnings per 
share                 3     2.21p              2.95p              5.64p
                                          


UNAUDITED CONSOLIDATED BALANCE SHEET AT 30 JUNE 2000

                    Note   30 June 2000      30 June 1999      31 December    
                                                                      1999
                                 £000's            £000's           £000's
                                          
Fixed assets                                          
Negative goodwill                (1,806)              -            (1,806)
Tangible assets                   28,147           19,854           26,074
                                  26,341           19,854           24,268
                                          
Current assets                                          
Stocks                             1,721            1,955            1,754
Debtors                              930              623            1,010
Cash at bank and in hand               1               13                3
                                   2,652            2,591            2,767
                                          
Creditors: amounts falling 
due within one year               (3,560)          (3,028)          (3,382)
                                          
Net current liabilities            (908)            (437)            (615)
                                          
Total assets less current 
liabilities                       25,433           19,417           23,653
                                          
Creditors: amounts falling 
due after more than one year      (6,788)         (3,238)           (5,393)
                                          
Provisions for liabilities and charges                                        
 
Deferred income                     (952)            -                (751)
                                          
                                   17,693          16,179            17,509
                                          
Capital and reserves                                          
Called up share capital              968              964               968
Share premium account                608               31               552
Revaluation reserve               15,316           14,666            15,316
Profit and loss account              801              518               673
                                          
                            4     17,693           16,179            17,509
                                          
Shareholders' funds                                          
Equity shareholders funds         16,781           15,267            16,597
Non-equity shareholders funds:                                          
    Convertible preference shares    900              900               900
    Deferred shares                   12               12                12
                                          
                                  17,693           16,179            17,509
                                          


UNAUDITED CONSOLIDATED CASH FLOW STATEMENT


For the six months ended 30 June 2000



                          Note   6 months to     6 months to        Year to
                                30 June 2000    30 June 1999    31 December   
                                                                       1999
                                      £000's          £000's         £000's
                                          
Net cash inflow from 
operating activities        5          1,784             444          1,865
                                          
Returns on investments 
and servicing of finance                                          

Net interest paid                       (194)           (213)          (412)
Non equity dividend paid                 (27)            (27)           (54)
                                          
Net cash outflow from 
returns on investments 
and servicing of finance                (221)           (240)          (466)
                                          
Capital expenditure and 
financial investment                                          

Purchase of tangible 
fixed assets                          (1,775)           (263)        (2,879)
Sale of tangible fixed assets            593              -              167
                                          
Net cash outflow from 
capital expenditure and 
financial investment                  (1,182)           (263)        (2,712)
                                          
Equity dividend paid                     (56)            (56)          (112)
                                          
Acquisitions                                          
Purchase of subsidiary 
undertaking                              -                -            (189)
Net overdraft of subsidiary              -                -            (251)
Net cash outflow from acquisitions       -                -            (440)
                                          
Financing                                          
Receipts from issue of shares             56              -              -    
     
Receipts from borrowings                 -                -            4,000
Repayments of borrowings          6    (314)            (200)         (1,861)
Capital element of finance 
lease rentals                     6    (344)             (81)           (360)
Expenses paid in 
connection with share issues              -               -              (15)
Net cash (outflow)/
inflow from financing                  (602)            (281)          1,764
                                          
Decrease in cash                       (277)            (396)           (101)
                                          
                                          


NOTES TO THE UNAUDITED INTERIM RESULTS

 1       TURNOVER AND PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

The turnover and profit on ordinary activities before taxation are
attributable to wharfing, manufacturing concrete and coated macadams and
quarrying all within the UK.


2        EXCEPTIONAL INCOME

Exceptional income represents the profit on disposal of the freehold of one of
the Company's wharf sites as previously disclosed.  The site is now secured on
a long lease.


3        EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the year.

Reconciliation of the earnings and weighted average number of shares used in
the calculations are set out below:

                         6 months to                     6 months to 
                         30 June 2000                    30 June 1999
                            
                  Earnings Weighted  Per share   Earnings  Weighted  Per Share
                     £     average   amount         £      average   amount
                           number    pence                 number    pence
                           of shares                       of shares

                                          
Basic Earnings 
per share                                          

Profit attributable 
to shareholders    154,576                          179,000              
Less preference 
dividends          (27,000)                         (27,000)              
Earnings attributable 
to ordinary 
shareholders        127,576 5,612,500     2.27       152,000 5,150,000    2.95
                                          
Dilutive effect of securities                                          
Options                -      161,318                    -       8,246       
Diluted Earnings 
per share           127,576 5,773,818     2.21       152,000 5,158,246    2.95


4       RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                         6 months to      6 months to          Year to
                             30 June          30 June      31 December 
                                2000             1999             1999        
                              £000's           £000's           £000's
                                          
Profit for the 
financial period                 155              123              365
Dividends                        (27)             (83)            (171)
Revaluation of fixed assets        -                -              650
Issue of shares                   56                -              540
Share issue costs                  -                -              (14)
                                 184               40            1,370
                                          
Shareholders' funds at 
beginning of period           17,509            16,139          16,139
                                          
Shareholders' funds at 
end of period                 17,693            16,179          17,509


 5 RECONCILIATION OF NET CASH INFLOW FROM OPERATING ACTIVITIES

                          6 months to       6 months to       Year to
                         30 June 2000      30 June 1999   31 December
                                                                 1999
                               £000's            £000's        £000's
                                          
Operating profit                  277               336           723
Depreciation                      228               197           407
Settlement income                   -               (70)          (70)
Exceptional income                261                 -             -
Decrease/(increase) in stocks      33              (223)          (22)
Decrease/(increase) in debtors     80              (160)         (511)
Increase in creditors             905               364         1,337
                                          
                                1,784               444         1,865


6       RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                           6 months to       6 months to       Year to
                          30 June 2000      30 June 1999   31 December 
                                                                  1999
                                £000's            £000's        £000's
                                          
Decrease in cash in 
the period                        (277)             (396)         (101)
Cash outflow/(inflow) 
from financing in the period       314               200        (2,139)
Cash outflow from finance 
leases in the period               344                81           360
                                          
Change in net debt 
resulting from cash flows          381              (115)       (1,879)
Inception of finance 
leases and similar hire 
purchase contracts              (1,380)                -          (707)
                                          
Movement in net debt 
in the period                     (999)             (115)       (2,587)
Net debt at 1 January           (7,588)           (5,001)       (5,001)
                                          
Net debt at end of period       (8,587)           (5,116)       (7,588)


7       BASIS OF PREPARATION

The interim results are unaudited and have been prepared on the basis of the
accounting policies set out in the Company's 1999 statutory accounts.  The
financial information for the six months to 30 June 1999 has been extracted
from the financial statements for the year ended 31 December 1999.  These
accounts, upon which the auditors expressed an unqualified opinion, have been
delivered to the Registrar of Companies.