Interim Results

AMCO Corporation PLC
25 September 2003



AMCO CORPORATION PLC

UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2003




CHAIRMAN'S STATEMENT

RESULTS



There was an operating loss of £353,000 for the first half of 2003. This was
mainly due to a) contracting activities - continuing losses on the two problem
contracts in Scotland, each of which is subject to a substantial claim against
the client. These claims have not yet been agreed and, in accordance with our
accounting policies, have not been brought into these financial statements. In
addition our rail activities have been adversely affected by large increases in
employer's liability insurance, which on fixed term fixed price contracts cannot
be recovered from the client; b) tunnelling and allied equipment manufacture due
to the timing of the completion of manufacture of orders; and c) structural
steel activities due to losses on the supply of structural steel for an office
block in London.



The property development business was profitable in the half year following the
joint venture's sale of land in Sheffield for residential development.



The loss before tax for the half year was £628,000 compared with a profit of
£1,117,000 for the first half of 2002 and £1,582,000 for 2002. The loss per
share was 4.2 pence for the half year compared with a profit of 6.3 pence for
the first half of 2002 and 9.8 pence for 2002.



DIVIDEND

We do not intend to pay an interim dividend for 2003.



LIQUIDITY AND CAPITAL RESOURCES

There was nil gearing at 30 June 2003 compared with 23% at 30 June 2002 and 12%
at 31 December 2002.



PROSPECTS

The client has accepted that there are changed geological conditions on one of
the two problem contracts in Scotland. However, it is unlikely that the claim
will be settled in 2003.



The fixed term fixed price rail contracts are renegotiated from 1 January 2004
and there should be no further shortfall in the recovery of employer's liability
insurance after that date.



Dosco has secured a substantial volume of work for the second half of 2003 and
this should result in improved figures for the second half of the year.



We look for improved results in structural steel and contracting activities for
the second half of 2003. A number of property development projects are underway
although it is unlikely that any will crystalise profits in the second half.



MR. HENRY SCHMILL



As already reported, Henry Schmill died on 14 September 2003 after a long
illness at the age of 77. He founded the AMCO Group in December 1970 and
remained a director until his death. He was much respected by clients and
employees and will be greatly missed especially for his energy and enthusiasm. A
memorial service will be held at Wakefield Cathedral on Friday 24 October 2003
at 11 a.m. to which all who knew him are welcome.



Stuart N. Gordon

25 September 2003



Consolidated profit and loss account
(Unaudited)
                                                   Six months to 30th  Six months to 30th     Twelve months to
                                                            June 2003           June 2002   31st December 2002
                                                                 £000                £000                 £000


Turnover including share of joint ventures                     48,696              46,093               91,485
Share of turnover of joint ventures                           (1,352)               (733)                (849)
Group turnover                                                 47,344              45,360               90,636

Group operating (loss)/profit                                   (870)                 495                  468
Share of operating profit of joint ventures                       517                   9                   24
Operating (loss)/profit including joint ventures                (353)                 504                  492
Profit on sale of fixed asset investments                           0                 497                  743
Net interest payable                                            (106)               (160)                (206)
Other finance (costs)/income                                    (169)                 276                  553
(Loss)/profit on ordinary activities before                     (628)               1,117                1,582
taxation
Taxation on (loss)/profit on ordinary activities                  130               (387)                (432)
Retained (loss)/profit for the period                           (498)                 730                1,150
(Loss)/earnings per share                                      (4.2p)                6.3p                 9.8p



Consolidated balance sheet
(Unaudited)
                                                       30th June 2003      30th June 2002   31st December 2002
                                                                 £000                £000                 £000
Fixed assets
                Tangible assets                                12,411              14,223               13,856
                Investments                                       588                 622                  600
                                                               12,999              14,845               14,456
                Investments in joint ventures:
                   Share of gross assets                        4,560               3,131                3,142
                   Share of gross liabilities                 (3,449)             (2,379)              (2,385)
                                                                1,111                 752                  757
                                                               14,110              15,597               15,213
Current assets
                Stock and work in progress                     11,841               9,368                8,720
                Amounts recoverable on contracts                3,614               5,003                2,812
                Debtors                                        11,136              11,377               12,567
                Cash at bank and in hand                        4,619               4,043                4,571
                                                               31,210              29,791               28,670
Creditors: amounts falling due within one year               (25,878)            (25,362)             (23,698)
Net current assets                                              5,332               4,429                4,972
Total assets less current liabilities                          19,442              20,026               20,185
Creditors: amounts falling due after more than
one year
                                                              (2,459)             (2,837)              (2,667)
Provisions for liabilities and charges                          (191)                   0                (191)
Net assets excluding pension liability                         16,792              17,189               17,327
Pension liability                                            (13,738)             (7,192)             (12,559)
Net assets including pension liability                          3,054               9,997                4,768


Capital and reserves
Called up share capital                                         1,293               1,293                1,293
Share premium                                                   1,864               1,864                1,864
Capital redemption reserve                                        132                 132                  132
Profit and loss account                                         (235)               6,708                1,479
Shareholders' funds                                             3,054               9,997                4,768



Summary consolidated cashflow statement
(Unaudited)
                                                   Six months to 30th  Six months to 30th     Twelve months to
                                                            June 2003           June 2002   31st December 2002
                                                                 £000                £000                 £000
Operating (loss)/profit                                         (870)                 495                  468
Depreciation on tangible fixed assets                           1,681               1,291                2,946
Difference between pension charge and cash
contributions
                                                                (293)               (953)                (942)
Profit on sale of fixed assets                                  (172)                (25)                (121)
Movement in working capital                                     1,743             (1,624)                (172)
Net cashflow from operating activities                          2,089               (816)                2,179
Net cashflow from returns on investments and
servicing of finance
                                                                 (97)               (154)                (191)
Taxation                                                          169               (162)                (326)
Net cashflow from capital expenditure and
financial investment
                                                                  625                 503                  810
Net cashflow before financing                                   2,786               (629)                2,472
Net cashflow from financing                                   (1,183)                 404                (873)
Increase/(decrease) in cash                                     1,603               (225)                1,599


Notes


1. Reconciliation of net cashflow to movement in
net funds/(debt)
Increase/(decrease) in cash in the period                       1,603               (225)                1,599
Net cashflow on bank loans                                        186             (1,106)                (900)
Cash outflow on finance leases                                    997                 702                1,773
Change in net debt resulting from cashflows                     2,786               (629)                2,472
Inception of finance leases                                     (677)             (1,150)              (2,381)
Movement in net debt in the period                              2,109             (1,779)                   91
Net debt at start of period                                   (2,057)             (2,148)              (2,148)
Net funds/(debt) at end of period                                  52             (3,927)              (2,057)


2. Analysis of net funds/(debt)
Cash at bank and in hand                                        4,619               4,043                4,571
Bank overdrafts                                                     0             (2,851)              (1,555)
                                                                4,619               1,192                3,016
Bank loans                                                    (1,676)             (2,068)              (1,862)
Finance leases                                                (2,891)             (3,051)              (3,211)
Net funds/(debt)                                                   52             (3,927)              (2,057)


3. Gearing                                                         0%                 23%                  12%



Statement of total recognised gains and losses
(Unaudited)
                                                   Six months to 30th  Six months to 30th     Twelve months to
                                                            June 2003           June 2002   31st December 2002
                                                                 £000                £000                 £000
(Loss)/profit for the period                                    (498)                 730                1,150
Actuarial loss recognised in the pension schemes              (1,825)             (3,494)             (11,427)
Movement on deferred tax relating to pension
liability
                                                                  521                 679                2,979
Current tax relating to pension liability                          88                 286                  270
Total recognised losses for the period                        (1,714)             (1,799)              (7,028)


Note


Actuarial loss recognised in the pension schemes
Actual return less expected return on pension                     662             (4,343)              (9,909)
scheme assets
Experience gains and losses arising on the scheme                  35                 849                  175
liabilities
Changes in assumptions underlying the present                 (2,522)                   0              (1,693)
value of the scheme liabilities
                                                              (1,825)             (3,494)             (11,427)



Notes:



1.          The financial information for the six months ended 30 June
2003 and the comparative figures for the six months ended 30 June 2002 are
unaudited and have been prepared on the basis of the accounting policies set out
in the statutory accounts for the year ended 31 December 2002 and have been
approved by the Board.  This financial information does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985.  The financial
statements for the year ended 31 December 2002 received an unqualified audit
report and have been delivered to the Registrar of Companies.



2.          Earnings per ordinary share have been calculated on the
basis of profit for the period after tax, divided by the weighted average of
ordinary shares in issue in the period, excluding those held in the ESOP Trust,
of 11,801,058. The comparatives are calculated by reference to the weighted
average of shares in issue which were 11,596,644 for the period to 30 June 2002
and 11,778,408 for the year ended 31 December 2002.



3.          This statement is being sent to the shareholders of the Company
and will be available at the Company's Registered Office at Amco House, 25
Moorgate Road, Rotherham, South Yorkshire, S60 2AD.



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