Interim Results

AMCO Corporation PLC
07 August 2007


AMCO CORPORATION PLC


7 AUGUST 2007


UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007


CHAIRMAN'S STATEMENT


INTRODUCTION


I am pleased to be writing to you with this my first Chairman's statement
following appointment to this role on 1 April 2007. The financial statements are
somewhat lengthier than in previous years due to the requirement for the Group
to report under International Financial Reporting Standards ('IFRS') from 1
January 2007. The adjustments between UK GAAP and IFRS for the period are not
material and a full reconciliation is shown in the attached notes.


RESULTS


Total operating profits for the first half of 2007 were £2,284,000 (2006
£4,643,000). The turnover figures for the two periods are comparable, but the
nature of the Group's operations are such that profits are not generated evenly
which can give rise to both positive and adverse fluctuations in reported
profits. The profits for the first half year as reported are in line with the
Board's expectations, as explained below. Profit before taxation was £2,277,000,
compared with £4,680,000 for the same period last year.


Structural Steel

Structural steel activities returned operating profits of £2,378,000, which were
broadly in line with expectations and after a slow start in the early part of
the year the prospects for the full year are looking positive.


Property

Property development activities including the joint ventures, showed marginally
better than break even, this compares with a contribution of £1,952,000 for the
comparable period last year. The profitability of this part of the business is
dependent upon the timing of the completion and sale of development projects.
The projects currently in hand are anticipated to generate satisfactory profits
within the next twelve months.


Specialist Engineering

Specialist engineering operating profits were £637,000 which is an improvement
on the figure of £324,000 for the comparable period last year. This division has
been substantially reorganised in recent years and is progressing
satisfactorily. Turnover for the period was £33.5m, but the nature of the work
is such that overhead costs are proportionately high, meaning that the division
is generating a low margin contribution towards the Group result. The prospects
for the second half year are likely to be similar to the first six months.


Manufacturing

This division has made an operating loss of £451,000, which compares with an
operating profit of £156,000 for the comparable period last year. The results
for the Dosco operations are affected by the timing of machinery sales. The
order book for the second half of the year is such that this division is likely
to show a marked improvement in contribution for the full year.


Pension Schemes and Total Recognised Gains

There were actuarial gains recognised in the pension schemes of £5,121,000
before taxation and £3,583,000 after taxation. Having regard to the profits for
the period of £1,594,000 this resulted in total recognised gains for the first
half of 2007 of £5,177,000.


Earnings per Share

These were 13.7 pence for the period, compared with 28.0 pence for the
corresponding period in 2006 and 53.0 pence for the whole of 2006. It is worth
noting that the figure for the first half of 2005 was 13.7 pence.


DIVIDEND


I am delighted to announce that the Directors intend to pay a dividend of 3.5p
pence per share on 1 October 2007 to shareholders on the register on 31 August
2007.

The Group has previously operated a policy of making payments based on the
results achieved for each half year with no recognition of the likely result for
the full year. It is my intention to move to a more conventional dividend policy
whereby the dividend attributable to the full year is broken down approximately
as to one third payable at the interim stage and two thirds at the final.


LIQUIDITY AND CAPITAL RESOURCES


Gearing at 30 June 2007 was 13.9%, compared to nil at 30 June 2006 and 29.6% at
31 December 2006. Shareholders' funds increased from £16,077,000 at 1 January
2007 to £20,159,000 at 30 June 2007.


PROSPECTS


As explained above in the commentary for each of the divisions it is anticipated
that the results for the second half of 2007 will generate a satisfactory
outcome for the full year.



Peter K. Hems

7 August 2007


Condensed consolidated interim income statement
(Unaudited)

              Six months to 30th   Six months to 30th    Twelve months to 31st
                       June 2007            June 2006             December 2006
                           £000                 £000                      £000

Revenue                  55,899               53,528                   127,898
Increase in
work in
progress                 11,207               10,702                     9,396
Total                    67,106               64,230                   137,294
revenue
Raw material
and
consumables              21,421               25,230                    50,798
Other
external                 
charges                  21,555               16,430                    37,472
Staff costs              18,519               16,863                    36,298
Depreciation              1,630                1,290                     2,905
Other
operating
charges                   1,697                1,589                     3,010

                         64,822               61,402                   130,483

Group
operating
profit                    2,284                2,828                     6,811
Share of
profit in
joint                         0                1,815                     2,039
ventures
Total
operating
profit                    2,284                4,643                     8,850
Finance cost               (146)                 (79)                     (200)
Finance                      86                   98                       201
income
Other
finance                      53                   18                        24
income
Profit on
ordinary
activities
before
taxation                  2,277                4,680                     8,875
Taxation on
profit on
ordinary
activities                 (683)              (1,416)                   (2,689)
Profit
transferred
to                        1,594                3,264                     6,186
reserves
Earnings per
share (basic
and diluted)               13.7p                28.0p                     53.0p
Dividends
per                         3.5p                 7.0p                     13.0p
share


Condensed consolidated interim balance sheet
(Unaudited)

                           30th June 2007   30th June 2006   31st December 2006
                                     £000             £000                 £000
Assets
Non current assets
Property, plant and
equipment                         17,965           16,217               18,735
Investments in joint
ventures                           1,153            2,230                1,250
Investments held for
resale                                 0              350                    0
Deferred tax assets                2,956            4,600                4,625
Total non current
assets                            22,074           23,397               24,610
Current assets
Inventories and work in
progress                          25,207           18,305               21,591
Amounts recoverable on
contracts                          8,251            4,413                8,230
Trade and other
receivables                       11,187           13,389               13,385
Cash and cash
equivalents                        3,732            5,323                3,427
Total current assets              48,377           41,430               46,633
Total assets                      70,451           64,827               71,243
Liabilities
Current liabilities
Short term borrowings                  0                0                1,477
Current portion of long
term borrowings                    2,196            3,480                3,623
Trade and other
payables                          35,164           31,939               32,513
Current tax payable                  328              206                  633
Total current
liabilities                       37,688           35,625               38,246
Non current liabilities
Long term borrowings               4,335            1,761                3,089
Deferred tax
liabilities                        1,556            1,510                1,556
Pension liabilities                6,713           11,124               12,275
Total non current
liabilities                       12,604           14,395               16,920
Total liabilities                 50,292           50,020               55,166
Net assets                        20,159           14,807               16,077
Equity
Issued capital                     1,293            1,293                1,293
Share premium                      1,864            1,864                1,864
Capital redemption
reserve                              132              132                  132
Other reserve                     (1,268)            (865)                (869)
Profit and loss account           18,138           12,383               13,657
Shareholders' funds               20,159           14,807               16,077


Condensed consolidated interim statement of recognised income and expense
(Unaudited)

                               Six months to   Six months to   Twelve months to
                              30th June 2007  30th June 2006  31st December 2006
                                        £000            £000               £000

Actuarial gain
recognised in
the pension
schemes (see
note)                                 5,121           5,477              4,291
Movement on
deferred tax
relating to
pension
liability                            (1,669)         (2,080)            (1,734)
Current tax
relating to
pension
liability                               131             437                447
Net income
recognised
directly in
equity                                3,583           3,834              3,004
Profit for the
period                                1,594           3,264              6,186
Total
recognised
income and
expense in the
period
attributable
to equity
holders                               5,177           7,098              9,190
Note
Actuarial gain/(loss)
recognised in the pension
schemes
Actual return
less expected
return on
pension scheme
assets                                  683             (59)             2,151
Experience
gains and
losses arising
on the scheme
liabilities                               3              33                (59)
Changes in
assumptions
underlying the
present value
of the scheme
liabilities                           4,435           5,503              2,199
                                      5,121           5,477              4,291


Condensed consolidated interim cashflow statement
(Unaudited)

                        Six months to     Six months to   Twelve months to 31st
                       30th June 2007    30th June 2006       December 2006
                                 £000              £000                  £000
Cashflows from
operating activities
Group profit
after tax                       1,594             3,264                 6,186
Adjustments for:
Profits from
joint ventures                      0            (1,815)               (2,039)
Depreciation
on property,
plant and
equipment                       1,630             1,290                 2,905
Difference
between
pension charge
and cash
contributions                    (388)           (1,438)               (1,467)
Profit on sale
of property,
plant &
equipment                         (46)             (136)                 (470)
Taxation
expense
recognised in
income
statement                         683             1,416                 2,689
Taxation paid                    (759)             (537)               (1,552)
Finance
cost/income                         6               (37)                  (25)
Decrease/(incr
ease) in trade
and other
receivables                     2,177            (3,042)               (5,573)
Increase in
inventories
and work in
progress                       (3,616)           (6,924)              (10,210)
Increase in
trade and
other payables                  1,955             5,442                 6,016
Net cashflow
from operating
activities                      3,236            (2,517)               (3,540)
Cashflows from
investing activities
Distributions
from joint
ventures                            0               700                 2,450
Net cashflow
from returns
on investments
and servicing
of finance                        (60)               19                     1
Purchase of
property,
plant and
equipment                        (990)           (2,542)               (6,861)
Proceeds from
sale of
property,
plant and
equipment                         176               307                   805
Net cash
inflow from
disposal of
investments                         0                 0                   372
Net cashflow
from investing
activities                       (874)           (1,516)               (3,233)
Cashflows from
financing activities
Equity
dividends paid                      0                 0                (2,100)
Proceeds of
bank and other
loans                           2,238             1,490                 6,357
Repayment of
bank and other
loans                          (2,158)              (60)               (3,310)
Inception of
hire purchase
payments                          587             1,078                 1,880
Capital
element of
hire purchase
payments                         (848)             (823)               (1,771)
Employee Share
Ownership Plan
share
purchases                        (410)              (96)                 (104)
Employee Share
Ownership Plan
share sales                        11                29                    33
Net cashflow
from financing
activities                       (580)            1,618                   985
Net increase
/(decrease) in
cash and cash
equivalents                     1,782            (2,415)               (5,788)
Cash and cash
equivalents at
beginning of
period                          1,950             7,738                 7,738
Cash and cash
equivalents at
end of period                   3,732             5,323                 1,950
Cash and cash
equivalents                     3,732             5,323                 3,427
Bank overdraft                      0                 0                (1,477)
                                3,732             5,323                 1,950


NOTES


Segmental reporting
(Unaudited)

                                    Six months to Six months to Twelve months to
                                      30th June     30th June    31st December
                                        2007          2006            2006
                                        £000          £000             £000
Analysis of revenue
Structural
Steel                                    26,435        28,726           57,188
Property                                  3,332         3,468           12,088
Specialist
Engineering                              33,530        25,691           54,258
Manufacturing                             3,381         5,878           12,824
Group                                       428           467              936
Consolidated
total                                    67,106        64,230          137,294
Analysis of group operating profit
before joint ventures and finance
cost/income
Structural
Steel                                     2,378         2,628            4,587
Property                                    105           137              557
Specialist
Engineering                                 637           324            1,718
Manufacturing                              (451)          156              757
Group                                      (385)         (417)            (808)
Consolidated
total                                     2,284         2,828            6,811


Amco Corporation Plc operates in four segments, Structural Steel, Property,
Specialist Engineering and Manufacturing. The Group revenue is largely derived
from vehicle lease and management charges to former group companies together
with profits on disposal of vehicles.


All revenue originates from the United Kingdom.


Dividends


In the first half of 2007 Amco Corporation Plc declared dividends of £776,000
(2006 £1,423,000) to its equity shareholders (including the ESOP), a dividend of
6 pence per share (first half of 2006 - 11 pence per share). An interim dividend
for 2006 of £905,000 was paid in the second half of 2006, a payment of 7 pence
per share.


Condensed consolidated interim statement of changes in equity
(Unaudited)
                       Share    Share    Capital     Other    Profit     Total
                      Capital  Premium  Redemption  Reserve   & Loss    Equity
                               Account   Reserve    (ESOP)    Account
                        £000     £000       £000      £000      £000      £000

Restated balance
at 1st January
2006 under IFRS        1,293    1,864        132      (798)    6,567     9,058
Changes in equity for
first half of 2006
Actuarial gain
(net) on pension
scheme                     0        0          0         0     3,834     3,834
Net income
recognised
directly in
equity                     0        0          0         0     3,834     3,834
Profit for the
six months to
30th June 2006             0        0          0         0     3,264     3,264
Total recognised
income and
expense in the
period                     0        0          0         0     7,098     7,098
Dividends                  0        0          0         0    (1,282)   (1,282)
ESOP movement in
period                     0        0          0       (67)        0       (67)
Balance at 30th
June 2006              1,293    1,864        132      (865)   12,383    14,807
Changes in equity for
second half of 2006
Actuarial loss
(net) on pension
scheme                     0        0          0         0      (830)     (830)
Net income
recognised
directly in
equity                     0        0          0         0      (830)     (830)
Profit for the
six months to
30th December
2006                       0        0          0         0     2,922     2,922
Total recognised
income and
expense in the
period                     0        0          0         0     2,092     2,092
Dividends                  0        0          0         0      (818)     (818)
ESOP movement in
period                     0        0          0        (4)        0        (4)
Balance at 31st
December 2006          1,293    1,864        132      (869)   13,657    16,077
Changes in equity for
first half of 2007
Actuarial gain
(net) on pension
scheme                     0        0          0         0     3,583     3,583
Net income
recognised
directly in
equity                     0        0          0         0     3,583     3,583
Profit for the
six months to
30th June 2007             0        0          0         0     1,594     1,594
Total recognised
income and
expense in the
period                     0        0          0         0     5,177     5,177
Dividends                  0        0          0         0      (696)     (696)
ESOP movement in
period                     0        0          0      (399)        0      (399)
Balance at 30th
June 2007              1,293    1,864        132    (1,268)   18,138    20,159


IFRS Transition notes


These are the Group's first condensed consolidated interim financial statements
prepared under IFRS. An explanation of how the transition from UK GAAP to IFRS
has affected the Group is set out below. The IFRS accounting policies of the
Group are detailed below.


1)       IAS 31 Interests in Joint Ventures

Previously under FRS 9 Joint Ventures were accounted for under the gross equity
method. Under IFRS these are reported under the equity method. Under FRS 9 the
Group's share of the turnover, operating profit before tax, finance cost or
income and taxation charge were reported separately within the profit and loss
account or notes thereto. Under IFRS Joint Ventures appear as a a single line
item within the income statement, being the Group's share of the profit or loss
after tax. Within the balance sheet the Group's investment in joint ventures is
now shown as a single line item rather than the share of gross assets and share
of gross liabilities which was previously shown under FRS 9.


2)       IAS 12 Income Taxes

Under IFRS, deferred tax is to be provided on all revalued assets included in
the balance sheet. Under UK GAAP deferred tax had not been provided on the
property revaluations. As a result of the application of IFRS the gross amount
of the property revaluations (and thus shareholders' funds) has been reduced by
£985,000 with a corresponding increase in the deferred tax liability. In
addition pension liabilities are now stated gross and the related deferred tax
asset disclosed within non current assets.


3)       Property Revaluation Reserve

The revalued amount for property has been accounted for as deemed cost under the
transition to IFRS. As a result the property revaluation reserve previously
disclosed under UK GAAP is transferred to the profit and loss account reserve.


4)       Explanation of material adjustments to the cashflow statement

Application of IFRS has resulted in reclassification of certain items in the
cashflow statement as follows:

Under UK GAAP, payments to acquire property, plant and equipment were classified
as part of 'Capital expenditure and financial investment'. Under IFRS, payments
to acquire property, plant and equipment have been classified as part of
'Investing activities'.

Income taxes are classified as operating cashflows under IFRS, but were included
in a separate category of tax cashflows under previous GAAP.

Interest paid and interest received are classified as cashflows from investing
activities under IFRS, but were included in the 'Returns on investments and
servicing of finance' category in cashflows under UK GAAP.

Equity dividends paid are classified as financing cashflows under IFRS, but were
included in a separate category of dividend cashflows under previous GAAP.

There are no other material differences between the cashflow statement presented
under IFRS and the cashflow statement presented under UK GAAP.


Reconciliation of profit
(Unaudited)

                       Six months                       Twelve months
                         to 30th                           to 31st
                        June 2006                       December 2006
              UK GAAP    Adjusts     IFRS     UK GAAP   Adjusts (note 1) IFRS
                        (note 1)                             
                £000        £000      £000       £000          £000       £000
Total
revenue
(including
share of
revenue in
joint         58,234      (4,706)   53,528    135,730        (7,832)   127,898
ventures)
Increase in
work in
progress      10,702           0    10,702      9,396             0      9,396
Less: Share
of
revenue in    (4,706)      4,706         0     (7,832)        7,832          0
joint
ventures
Group         64,230           0    64,230    137,294             0    137,294
revenue
Raw material
and
consumables   25,230           0    25,230     50,798             0     50,798
Other
external      16,430           0    16,430     37,472             0     37,472
charges
Staff costs   16,863           0    16,863     36,298             0     36,298
Depreciation   1,290           0     1,290      2,905             0      2,905
Other
operating
charges        1,589           0     1,589      3,010             0      3,010
              61,402           0    61,402    130,483             0    130,483
Group
operating
profit         2,828           0     2,828      6,811             0      6,811
Share of
profit in
joint          1,810           5     1,815      2,092           (53)     2,039
ventures
Total
operating
profit         4,638           5     4,643      8,903           (53)     8,850
Finance cost     (79)          0       (79)      (200)            0       (200)
Finance           98           0        98        210            (9)       201
income
Other
finance           18           0        18         24             0         24
income
Profit on
ordinary
activities
before
taxation       4,675           5     4,680      8,937           (62)     8,875
Taxation on
profit on
ordinary
activities    (1,411)         (5)   (1,416)    (2,751)           62     (2,689)
Profit
transferred
to             3,264           0     3,264      6,186             0      6,186
reserves


Reconciliation of equity
(Unaudited)

                1st January Investments Deferred Revaluation Reserve 1st January
                   2006                   Tax         (note 3)          2006
                  UK GAAP    (note 1)   (note 2)                        IFRS
                     £000        £000     £000                £000        £000
Assets
Non current
assets
Property,
plant and
equipment          15,136           0        0                   0      15,136
Investments in
joint ventures          0       1,661        0                   0       1,661
share of gross
assets             12,595     (12,595)       0                   0           0
share of gross
liabilities       (10,934)     10,934        0                   0           0
Investments
held for
resale                350           0        0                   0         350
Deferred tax
assets              1,263           0    5,417                   0       6,680
Total non
current assets     18,410           0    5,417                   0      23,827
Current assets
Inventories
and work in
progress           11,381           0        0                   0      11,381
Amounts
recoverable on
contracts             957           0        0                   0         957
Trade and
other
receivables        15,085           0        0                   0      15,085
Cash and cash
equivalents         7,738           0        0                   0       7,738
Total current
assets             35,161           0        0                   0      35,161
Total assets       53,571           0    5,417                   0      58,988
Liabilities
Current
liabilities
Short term
borrowings              0           0        0                   0           0
Current
portion of
long term
borrowings          1,846                    0                   0       1,846
Trade and
other payables     26,497           0        0                   0      26,497
Current tax
payable               310           0        0                   0         310
Total current
liabilities        28,653           0        0                   0      28,653
Non current
liabilities
Long term
borrowings          1,710           0        0                   0       1,710
Deferred tax
liabilities           525           0      985                   0       1,510
Pension
liabilities        12,640           0    5,417                   0      18,057
Total non
current
liabilities        14,875           0    6,402                   0      21,277
Total
liabilities        43,528           0    6,402                   0      49,930
Net assets         10,043           0     (985)                  0       9,058
Equity
Issued capital      1,293           0        0                   0       1,293
Share premium       1,864           0        0                   0       1,864
Capital
redemption
reserve               132           0        0                   0         132
Property
revaluation
reserve             3,284           0     (985)             (2,299)          0
Other reserve        (798)          0        0                            (798)
Profit and
loss account        4,268           0        0               2,299       6,567
Shareholders'
funds              10,043           0     (985)                  0       9,058

                 30th June  Investments Deferred  Revaluation Reserve 30th June
                    2006                   Tax         (note 3)          2006
                  UK GAAP    (note 1)   (note 2)                         IFRS
                     £000        £000      £000                £000       £000
Assets
Non current
assets
Property,
plant and
equipment          16,217           0         0                   0     16,217
Investments in
joint ventures          0       2,230         0                   0      2,230
share of gross
assets              9,968      (9,968)        0                   0          0
share of gross
liabilities        (7,738)      7,738         0                   0          0
Investments
held for
resale                350           0         0                   0        350
Deferred tax
assets              1,263           0     3,337                   0      4,600
Total non
current assets     20,060           0     3,337                   0     23,397
Current assets
Inventories
and work in
progress           18,305           0         0                   0     18,305
Amounts
recoverable on
contracts           4,413           0         0                   0      4,413
Trade and
other
receivables        13,389           0         0                   0     13,389
Cash and cash
equivalents         5,323           0         0                   0      5,323
Total current
assets             41,430           0         0                   0     41,430
Total assets       61,490           0     3,337                   0     64,827
Liabilities
Current
liabilities
Short term
borrowings              0           0         0                   0          0
Current
portion of
long term
borrowings          3,480           0         0                   0      3,480
Trade and
other payables     31,939           0         0                   0     31,939
Current tax
payable               206           0         0                   0        206
Total current
liabilities        35,625           0         0                   0     35,625
Non current
liabilities
Long term
borrowings          1,761           0         0                   0      1,761
Deferred tax
liabilities           525           0       985                   0      1,510
Pension
liabilities         7,787           0     3,337                   0     11,124
Total non
current
liabilities        10,073           0     4,322                   0     14,395
Total
liabilities        45,698           0     4,322                   0     50,020
Net assets         15,792           0      (985)                  0     14,807
Equity
Issued capital      1,293           0         0                   0      1,293
Share premium       1,864           0         0                   0      1,864
Capital
redemption
reserve               132           0         0                   0        132
Property
revaluation
reserve             3,284           0      (985)             (2,299)         0
Other reserve        (865)          0         0                   0       (865)
Profit and
loss account       10,084           0         0               2,299     12,383
Shareholders'
funds              15,792           0      (985)                  0     14,807

                   31st     Investments Deferred    Revaluation        31st
                 December                 Tax     Reserve (note 3)   December
                   2006                                                2006
                  UK GAAP    (note 1)   (note 2)                       IFRS
                     £000        £000     £000               £000        £000
Assets
Non current
assets
Property,
plant and
equipment          18,735           0        0                  0      18,735
Investments in
joint ventures          0       1,250        0                  0       1,250
share of gross
assets              4,765      (4,765)       0                  0           0
share of gross
liabilities        (3,515)      3,515        0                  0           0
Deferred tax
assets                942           0    3,683                  0       4,625
Total non
current assets     20,927           0    3,683                  0      24,610
Current assets
Inventories
and work in
progress           21,591           0        0                  0      21,591
Amounts
recoverable on
contracts           8,230           0        0                  0       8,230
Trade and
other
receivables        13,385           0        0                  0      13,385
Cash and cash
equivalents         3,427           0        0                  0       3,427
Total current
assets             46,633           0        0                  0      46,633
Total assets       67,560           0    3,683                  0      71,243
Liabilities
Current
liabilities
Short term
borrowings          1,477           0        0                  0       1,477
Current
portion of
long term
borrowings          3,623           0        0                  0       3,623
Trade and
other payables     32,513           0        0                  0      32,513
Current tax
payable               633           0        0                  0         633
Total current
liabilities        38,246           0        0                  0      38,246
Non current
liabilities
Long term
borrowings          3,089           0        0                  0       3,089
Deferred tax
liabilities           571           0      985                  0       1,556
Pension
liabilities         8,592           0    3,683                  0      12,275
Total non
current
liabilities        12,252           0    4,668                  0      16,920
Total
liabilities        50,498           0    4,668                  0      55,166
Net assets         17,062           0     (985)                 0      16,077
Equity
Issued capital      1,293           0        0                  0       1,293
Share premium       1,864           0        0                  0       1,864
Capital
redemption
reserve               132           0        0                  0         132
Property
revaluation
reserve             3,284           0     (985)            (2,299)          0
Other reserve        (869)          0        0                  0        (869)
Profit and
loss account       11,358           0        0              2,299      13,657
Shareholders'
funds              17,062           0     (985)                 0      16,077


Notes to the condensed consolidated interim financial statements


These condensed consolidated interim financial statements are for the six months
ended 30th June 2007. They have been prepared taking into account the
requirements of IAS 34 'Interim Financial Reporting' and the requirements of
IFRS 1 'First Time Adoption of International Financial Reporting Standards'
relevant to interim reports because they are part of the period covered by the
Group's first IFRS financial statements for the year ending 31st December 2007.
They do not include all of the information required for full financial
statements, and should be read in conjunction with the consolidated financial
statements (under UK GAAP) of the Group for the year ended 31st December 2006.


These condensed consolidated interim financial statements (the interim financial
statements) have been prepared in accordance with the accounting policies set
out below which are based on the recognition and measurement principles of IFRS
in issue as adopted by the European Union (EU) and are effective at 31 December
2007 or are expected to be adopted and effective at 31 December 2007, our first
annual reporting date at which we are required to use IFRS accounting standards
adopted by the EU.


Amco Corporation Plc's consolidated financial statements were prepared in
accordance with United Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice) until 31st December 2006. The date of transition
to IFRS was 1st January 2006. The comparative figures in respect of 2006 have
been restated to reflect changes in accounting policies as a result of the
adoption of IFRS. The disclosures required by IFRS 1 concerning the transition
from UK GAAP to IFRS are given in the reconciliation schedules attached to this
report.


The accounting policies have been applied consistently throughout the Group for
the purposes of preparation of these condensed consolidated interim financial
statements.


(a)     Basis of consolidation

The Group financial statements consolidate those of the Company and all of its
subsidiary undertakings. Subsidiaries are entities over which the Group has the
power to control the financial and operating policies so as to obtain benefits
from its activities. The Group obtains and exercises control through voting
rights.

Unrealised gains on transactions between the Group and its subsidiaries are
eliminated. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Amounts reported in
the financial statements of subsidiaries have been adjusted where necessary to
ensure consistency with the accounting policies adopted by the Group.

Acquisitions of subsidiaries are dealt with by the purchase method. The purchase
method involves the recognition at fair value of all identifiable assets and
liabilities, including contingent liabilities of the subsidiary, at the
acquisition date, regardless of whether or not they were recorded in the
financial statements of the subsidiary prior to acquisition. On initial
recognition, the assets and liabilities of the subsidiary are included in the
consolidated balance sheet at their fair values, which are also used as the
bases for subsequent measurement in accordance with the Group accounting
policies. Goodwill is stated after separating out identifiable intangible
assets. Goodwill represents the excess of acquisition cost over the fair value
of the Group's share of the identifiable net assets of the acquired subsidiary
at the date of acquisition.

The Group has elected not to apply IFRS 3 Business Combinations retrospectively
to business combinations prior to 1st January 2006.

Accordingly the classification of the combination (acquisition, reverse
acquisition or merger) remains unchanged from that used under UK GAAP. Assets
and liabilities are recognised at date of transition if they would be recognised
under IFRS, and are measured using their UK GAAP carrying amount immediately
post-acquisition as deemed cost under IFRS, unless IFRS requires fair value
measurement. Deferred tax and minority interest are adjusted for the impact of
any consequential adjustments after taking advantage of the transitional
provisions.

The transitional provisions used for past business combinations apply equally to
past acquisitions of interests in associates and joint ventures.


(b)     Revenue

In the case of contracts with customers where the contract is essentially for
the provision of labour, materials and plant, revenue represents the value of
labour, material and plant supplied in the period based on rates agreed with
customers.

In the case of contracts with customers which have the characteristics of
long-term contracts, revenue is the total amount receivable in respect of work
done, including certified amounts recoverable on contracts, and is treated as
follows:

- the amount by which recorded revenue is in excess of payments on account is
classified as amounts recoverable on contracts and separately disclosed within
current assets.

- the balance of payments on account in excess of amounts (a) matched with
revenue and (b) offset against long-term contract balances are classified as
payments on account and separately disclosed within trade and other payables.

- profits on contracts are taken at the point the outcome of the contract can be
estimated reliably.

In the case of property development activities, revenue is recognised when the
Group has met all of its contractual obligations and in the directors' opinion
these contracts have become binding. This is deemed to be when contracts reach
legal completion.

In all other cases, revenue represents the fair value of consideration received
or receivable for goods supplied in the period, excluding VAT and other
discounts.

In accordance with IAS 11 the Group does not recognise the revenue and profit
attributable to claims and disputed amounts on contracts until the recovery of
these amounts is considered probable and when the outcome can be estimated
reliably.


(c)     Property, plant and equipment

Property, plant and equipment is stated at cost, net of depreciation and any
provision for impairment.

The gain or loss arising on the disposal of an asset is determined as the
difference between the disposal proceeds and the carrying amount of the asset
and is recognised in the income statement.

On first adoption of IFRS the carrying value of land and freehold buildings that
had previously been revalued is shown as deemed cost, and not subsequently
revalued. The revaluation surplus that had been previously recognised is
transferred to the profit and loss account and realised as distributable
reserves on impairment, depreciation or disposal of the relevant properties.

Depreciation is calculated to write off the cost of property, plant and
equipment (other than freehold land) less estimated residual value by equal
annual instalments over their expected useful lives.

The rates applicable are:

Freehold and long leasehold buildings 2% to 4%

Plant and equipment 5% to 33.3%

Motor vehicles 10% to 40%

Impairment testing of property, plant and equipment

For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating
units). As a result, some assets are tested individually for impairment and some
are tested at a cash-generating unit level.

Individual assets or cash-generating units are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be
recoverable.

An impairment loss is recognised for the amount by which the asset's or
cash-generating unit's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of fair value, reflecting market conditions
less costs to sell, and value in use based on an internal discounted cash flow
evaluation. All assets are subsequently reassessed for indications that an
impairment loss previously recognised may no longer exist.

Material residual value estimates are updated as required but at least annually,
whether or not the asset is revalued.


(d)     Inventories and work in progress

Inventories and work in progress are valued at the lower of cost, including
applicable overheads, and net realisable value. Costs of ordinarily
interchangeable items are assigned using the first in, first out cost formula.
Within the property development companies, project related interest is included
in work in progress.

Contract work in progress is included in revenue on the basis of independent
certification of value of work done. Unpaid certified work is classified as
amounts receivable on contracts.

Provision is made for foreseeable losses on all contracts based on the loss
which is currently estimated to arise over the duration of any contract,
irrespective of the amount of work carried out at the balance sheet date.


(e)     Taxation

Current tax is the tax currently payable based on taxable profit for the year.

Deferred income taxes are calculated using the liability method on temporary
differences. Deferred tax is generally provided on the difference between the
carrying amounts of assets and liabilities and their tax bases. However,
deferred tax is not provided on the initial recognition of goodwill, nor on the
initial recognition of an asset or liability unless the related transaction is a
business combination or affects tax or accounting profit. Deferred tax on
temporary differences associated with shares in subsidiaries and joint ventures
is not provided if reversal of these temporary differences can be controlled by
the group and it is probable that reversal will not occur in the foreseeable
future. In addition, tax losses available to be carried forward as well as other
income tax credits to the Group are assessed for recognition as deferred tax
assets.

Deferred tax liabilities are provided in full, with no discounting. Deferred tax
assets are recognised to the extent that it is probable that the underlying
deductible temporary differences will be able to be offset against future
taxable income. Current and deferred tax assets and liabilities are calculated
at tax rates that are expected to apply to their respective period of
realisation, provided they are enacted or substantively enacted at the balance
sheet date.

Changes in deferred tax assets or liabilities are recognised as a component of
tax expense in the income statement, except where they relate to items that are
charged or credited directly to equity (such as the revaluation of land) in
which case the related deferred tax is also charged or credited directly to
equity.

The interim tax charge on underlying business performance is calculated by
reference to the estimated effective tax rate for the full year. Tax on
disposals and other exceptional items is based on the expected tax impact of
each item.


(f)      Retirement benefits

Defined Contribution pension schemes

The pension costs charged against operating profits represent the amount of the
contributions payable to the schemes in respect of the accounting period.

Defined Benefit pension schemes

Scheme assets are measured at fair values. Scheme liabilities are measured on an
actuarial basis using the projected unit method and are discounted at
appropriate high quality corporate bond rates that have terms to maturity
approximating to the terms of the related liability. Past service cost is
recognised as an expense on a straight-line basis over the average period until
the benefits become vested. To the extent that benefits are already vested the
Group recognises past service cost immediately.

Actuarial gains and losses are recognised immediately through the statement of
recognised income and expense (SORIE). The net surplus or deficit is presented
with other net assets on the balance sheet. The related deferred tax is shown
with other deferred tax balances. A surplus is recognised only to the extent
that it is recoverable by the Group.

The current service cost, past service cost and costs from settlements and
curtailments are charged against other operating charges. Interest on the scheme
liabilities and the expected return on scheme assets are included in other
finance income/costs.

Post-employment benefits other than pensions are accounted for in the same way.

Short-term employee benefits, including holiday entitlement, are included in
current pension and other employee obligations at the undiscounted amount that
the Group expects to pay as a result of the unused entitlement.


(g)     Goodwill

Goodwill representing the excess of the cost of acquisition over the fair value
of the Group's share of the identifiable net assets acquired, is capitalised and
reviewed annually for impairment. Goodwill is carried at cost less accumulated
impairment losses. Negative goodwill is recognised immediately after acquisition
in the income statement.

Goodwill written off to reserves prior to the date of transition to IFRS remains
in reserves. There is no reinstatement of goodwill that was amortised prior to
the transition to IFRS. Goodwill previously written off to reserves is not
written back to the income statement on subsequent disposal.


(h)     Leased assets

In accordance with IAS 17, the economic ownership of a leased asset is
transferred to the lessee if the lessee bears substantially all the risks and
rewards related to the ownership of the leased asset. The related asset is
recognised at the time of inception of the lease at the fair value of the leased
asset or, if lower, the present value of the minimum lease payments plus
incidental payments, if any, to be borne by the lessee. A corresponding amount
is recognised as a finance leasing liability.

Assets held under finance leases and hire purchase contracts are capitalised in
the balance sheet and depreciated over their expected useful lives. The interest
element of leasing payments represents a constant proportion of the capital
balance outstanding and is charged to the income statement over the period of
the lease.

All other leases are regarded as operating leases and the payments made under
them are charged to the income statement on a straight line basis over the
period of the lease term. Lease incentives are spread over the term of the
lease.


(i)       Employee Share Ownership Plan

The Group's Employee Share Ownership Plan ('ESOP') is a separately administered
trust. The assets of the ESOP comprise shares in the Company and cash. The
assets, liabilities, income and costs of the ESOP have been included in the
financial statements in accordance with SIC 12 Consolidation - Special Purpose
Entities and IAS 32 Financial Instruments - Disclosure and Presentation. The
shares in the Company are included at cost to the ESOP and deducted from
shareholders' funds and dividend income is excluded in arriving at profit before
tax and deducted from the aggregate of dividends paid and proposed. When
calculating earnings per share these shares are treated as if they were
cancelled.


(j)      Foreign currencies

Transactions in foreign currencies are translated at the exchange rate ruling at
the date of the transaction. Non-monetary items that are measured at fair value
in a foreign currency are translated using the exchange rate at the date when
the fair value was determined. Monetary assets and liabilities in foreign
currencies are translated at the rates of exchange ruling at the balance sheet
date. All foreign exchange differences are dealt with through the income
statement.


(k)     Joint ventures

Joint ventures are entities over which the Group holds a contractual share of
joint control. The Group financial statements incorporate joint ventures under
the equity method of accounting, supplemented by additional disclosures.

The Group's share of the profits, losses, finance income, finance cost and
taxation of joint ventures are included in the Group income statement. The Group
balance sheet includes the investment in joint ventures at the Group's share of
net assets.


(l)       Financial assets

Financial assets are divided into the following categories: loans and
receivables; financial assets at fair value through profit or loss;
available-for-sale financial assets; and held-to-maturity investments. Financial
assets are assigned to the different categories by management on initial
recognition, depending on the purpose for which they were acquired. The
designation of financial assets is re-evaluated at every reporting date at which
a choice of classification or accounting treatment is available.

All financial assets are recognised when the Group becomes a party to the
contractual provisions of the instrument. Financial assets other than those
categorised as at fair value through profit or loss are recognised at fair value
plus transaction costs. Financial assets categorised as at fair value through
profit or loss are recognised initially at fair value with transaction costs
expensed through the income statement.

Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Trade receivables
and other receivables are classified as loans and receivables. Loans and
receivables are measured subsequent to initial recognition at amortised cost
using the effective interest method, less provision for impairment. Any change
in their value through impairment or reversal of impairment is recognised in the
income statement.

Provision against trade receivables is made when there is objective evidence
that the Group will not be able to collect all amounts due to it in accordance
with the original terms of those receivables. The amount of the write-down is
determined as the difference between the asset's carrying amount and the present
value of estimated future cashflows.

A financial asset is derecognised only where the contractual rights to the
cashflows from the asset expire or the financial asset is transferred and that
transfer qualifies for derecognition. A financial asset is transferred if the
contractual rights to receive the cashflows of the asset have been transferred
or the Group retains the contractual rights to receive the cashflows of the
asset but assumes a contractual obligation to pay the cashflows to one or more
recipients. A financial asset that is transferred qualifies for derecognition if
the Group transfers substantially all the risks and rewards of ownership of the
asset, or if the Group neither retains nor transfers substantially all the risks
and rewards of ownership but does transfer control of that asset.


(m)   Financial liabilities

Financial liabilities are obligations to pay cash or other financial assets and
are recognised when the Group becomes a party to the contractual provisions of
the instrument. Financial liabilities categorised as at fair value through
profit or loss are recorded initially at fair value. All transaction costs are
recognised immediately in the income statement. All other financial liabilities
are recorded initially at fair value, net of direct issue costs.

Financial liabilities categorised as at fair value through profit or loss are
remeasured at each reporting date at fair value, with changes in fair value
being recognised in the income statement. All other financial liabilities are
recorded at amortised cost using the effective interest method, with
interest-related charges recognised as an expense in finance cost in the income
statement. Finance charges, including premiums payable on settlement or
redemption and direct issue costs, are charged to the income statement on an
accruals basis using the effective interest method and are added to the carrying
amount of the instrument to the extent that they are not settled in the period
in which they arise.

A financial liability is derecognised only when the obligation is extinguished,
that is, when the obligation is discharged or cancelled or expires.


(n)     Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together
with other short-term, highly liquid investments that are readily convertible
into known amounts of cash and which are subject to an insignificant risk of
changes in value.


(o)     Dividends

Dividend distributions payable to equity shareholders are included in 'trade and
other payables' when the dividends are approved in general meeting prior to the
balance sheet date.


(p)     Equity

Equity comprises the following:

'Issued capital' represents the nominal value of equity shares.

'Share premium' represents the excess over nominal value of the fair value of
consideration received for equity shares, net of expenses of the share issue.

'Capital redemption reserve' represents the purchase cost of shares repurchased
by the Group in 1998.

'Other reserves' represents the purchase cost of the shares held within the
Employee Share Ownership Plan (ESOP).

'Profit and loss account' represents retained profits and gains and losses due
to the revaluation of certain property, plant and equipment prior to the
implementation of IFRS.


(q)     Segmental reporting

The Group's primary reporting format is business segment and its secondary
format is geographical segment by origin of revenue.


(r)      Timing of revenue and profits

Due to their project related nature, property development revenues and profits
may not arise evenly throughout the year and can therefore have a material
effect on the interim as opposed to final results for the year. The revenue
recognition policy relating to property development is stated in note (b).

Further notes:


1. The financial information for the six months ended 30 June
2007 and the comparative figures for the six months ended 30 June 2006 are
unaudited and have been prepared on the basis of the accounting policies set out
in the notes to this financial information 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 2006, prepared under UK GAAP, received an unqualified audit
report, did not contain statements under section 237(2) of the Companies Act
1985 and have been delivered to the Registrar of Companies.


2. Earnings per ordinary share have been calculated on the
basis of the result for the period after tax, divided by the weighted average
number of ordinary shares in issue in the period, excluding those held in the
ESOP Trust, of 11,639,183. The comparatives are calculated by reference to the
weighted average number of ordinary shares in issue which were 11,662,508 for
the period to 30 June 2006 and 11,674,408 for the year ended 31 December 2006.


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,
Cedar Court Office Park, Denby Dale Road, Wakefield, West Yorkshire, WF4 3QZ.


ENDS



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