Interim Results

Brooke Industrial Holdings PLC
16 June 2000

BROOKE INDUSTRIAL HOLDINGS PLC

INTERIM STATEMENT
For the six months ended 31 March 2000

CHAIRMAN'S INTERIM STATEMENT

As anticipated in my statement in the Annual Report last year, the Group is
now beginning to realise the benefits of two years of continuous
reorganisation, substantial investment in new plant and the acquisition of
Somta Tools.  It is pleasing to report that the hard work of management and
staff is now translating into improved trading performance, confirming the
confidence of shareholders, and our bankers and advisers.  The Group is now
positioned to take advantage of identified opportunities in world markets, and
a programme of disposal of
surplus assets is under way.

GROUP RESULTS
I am pleased to report an encouraging improvement in the trading results for
the half year.  Including Somta Tools, Group first half sales increased by 37
per cent from £12.2m to £16.7m and a pre interest loss of £353,000 was turned
round to a pre interest profit of £484,000 before a charge of £279,000, which
essentially completes the extensive programme of Group reorganisation.  This
improved performance was against a background of an uncompetitive Sterling
exchange rate against the Euro.

BORROWINGS
The Group borrowings at 31st March 2000 were £14.6m, an increase of £1.6m over
the position at the end of the last financial year.  This primarily reflects
the increased working capital requirement, generated by increased activity
levels and a deferred consideration payment against the South African
acquisition.

DIVIDEND
Whilst the Board is encouraged by current trading and the prospects for
growth, in view of the working capital requirements to support the anticipated
growth, we do not believe it appropriate to pay an interim dividend.
However, if expectations for the  year are achieved, we fully expect to be
able to recommend a final dividend.

CUTTING TOOLS
Somta Tools in South Africa was acquired in June last year as a vehicle to new
and larger world markets, and a low cost manufacturing base for volume
production.   It is pleasing to report that Somta is achieving the levels of
activity and profitability anticipated.
The restructuring and rationalisation of manufacturing has seen the closure of
two sites in Rotherham and Bradford, with many product lines now transferred
to South Africa, and the establishment of three new distribution centres in
Rotherham, Chicago and Johannesburg.
Throughout the changes the division's customer base has expanded and currently
order books are over 40 per cent higher than at the beginning of the year with
the prospect of attracting greater volumes from mainland Europe as a result of
very recent exchange rate improvements.
Cutting tool sales now account for 51 per cent of total Group sales.

CARBIDE
The extensive programme of investment, to which the Group committed over two
years ago, was unfortunately undermined by low levels of activity in the
carbide wear part industry during 1999.  However, during the past six months,
the company has seen significant improvements in activity levels, reversing
the operating loss of the last financial year.  The improvement in activity
levels at the Doncaster facility has been coupled with rising productivity, as
the capital investment has demonstrated its value to the business.

METAL PARTS
The metal parts division encompasses both APW manufacturing in Warrington and
the separately managed seven Perfast distribution depots.
APW made encouraging progress in the first half, broadening its customer base
and winning work on many prestigious millennium projects.  Although
construction related activity was sluggish the company did achieve first half
expectations through cost control and manufacturing efficiencies.
Perfast continued to under-perform Group expectations in the first half.
However, the implementation of several action plans, coupled with the
appointment of a new Managing Director who has a wealth of experience in
industrial supply, will underpin a return to profitable growth.

SPRINGS
The UK Spring distribution business, serving the automotive after market from
a new refurbished distribution base in Sheffield, has now been consolidated
with Suplex Germany under a single management team.  In response to continuing
sales growth in Europe, the German business based in Dusseldorf has recently
increased its warehouse capacity by 66%, to handle the additional volumes, and
is presently trading well ahead of budgeted expectation.
The manufacturing business has now been consolidated on to a single
manufacturing site in Sheffield and progress has been made in the first half
of the financial year in realising the benefits.

DISPOSALS
The Group announced on 17th April 2000 that it had disposed of certain
freehold and leasehold properties now surplus to requirements.  The net
proceeds from disposals to date is £478,000, of which £235,000 has been
received since 31st March 2000.
A further freehold property in Bradford, and two leases in Chicago and
Rotherham, are now available for disposal and your Group hopes to be able to
make an announcement concerning these in the near future.
The Board recognises the need to evaluate all strategic proposals for the
Group and investigate options for non core businesses that do not form part of
the Group's plans for growth.

OUTLOOK
The Board and Group management are encouraged by the initial benefits being
realised as a result of reorganisation and investment, and look forward with
confidence, to the second half of this financial year and, in particular, next
year.


John K Dashper
Chairman


CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the six months ended 31 March 2000

              No  Opera-   Excep-  Un-     Un-      Audited
              te  tions    tional  audite  audited  year to
                  before   operat- d 6     6        30
                  excep-   ing     months  months   Septem-
                  tional   costs   to 31   to 31    ber
                  operat-          March   March    1999
                  ing              2000    1999
                  costs
                    £000's  £000's  £000's   £000's  £000's
Turnover       2   16,660        -  16,660   12,162  27,775
Cost of Sales     (11,847)       - (11,847)  (9,344) (21,218)
                   ------   ------  ------   ------  ------
Gross profit         4,813       -   4,813    2,818   6,557
Distribution       (3,058)       -  (3,058)  (2,019) (4,805)
costs                                    
Administratio      (1,459)   (279)  (1,738)  (1,152) (2,434)
n expenses          ------  ------  ------   ------  ------
Operating                                                  
profit/(loss)                                              
before                                                     
exceptional                                                
operating              296       -     296    (353)    (22)
costs
Exceptional                                                
operating                -   (279)   (279)        -   (660)
costs
                    ------  ------  ------   ------  ------
Operating                                                  
Profit/(Loss)          296   (279)      17    (353)   (682)
Profit on                                                  
disposal of                                                
fixed assets           188       -     188        -       -
                    ------  ------  ------   ------  ------
Profit/(loss)                                              
on ordinary                                                
activities                                                 
before                 484   (279)     205    (353)   (682)
interest
Interest                                                   
payable              (525)       -   (525)    (230)   (641)
                     -----   -----   -----    -----   -----
(Loss) on                                                  
ordinary                                                   
activities                                                 
before                (41)   (279)   (320)    (583) (1,323)
taxation
                    ------  ------                         
Taxation        4                       94      167      62
(Loss) on                                                  
ordinary                                                   
activities                                                 
after                                (226)    (416) (1,261)
taxation
Minority                                                   
interest                                 -       17      17
                                     -----    -----   -----
(Loss)                                                     
attributable                                               
to members of                                              
Brooke                                                     
Industrial                                                 
Holdings plc                         (226)    (399) (1,244)
Dividend                                 -    (133)   (400)
                                    ------   ------  ------
Deficit for                                                
the period                           (226)    (532) (1,644)
                                    ------   ------  ------
(Loss)/earnin   3                                          
gs per share                        (3.0p)   (5.2p) (16.5p)
Diluted         3                                          
(loss)/earnin                                              
gs per share                        (3.0p)   (5.2p) (16.2p)
Earnings per    3                                          
share before                                               
exceptional                                                
operating                           (0.4p)   (5.2p)  (8.1p)
costs               
                                       
CONSOLIDATED BALANCE SHEET
As at 31 March 2000

                         Unaudited   Unaudited       Audited
                          31 March    31 March            30
                              2000        1999     September
                                                        1999
                            £000's      £000's        £000's
Fixed Assets                                                
Tangible assets              9,476       6,943        10,028
                                                            
Current Assets                                              
Stocks                       9,967       6,457         9,777
Debtors                     10,280       6,981         8,974
Cash at bank and in            260         166           541
hand
                            ------      ------        ------
                            20,507      13,604        19,292
Creditors: amounts                                          
falling due within one    (18,045)     (8,360)      (14,855)
year
                            ------      ------        ------
Net current assets           2,462       5,244         4,437
                            ------      ------        ------
Total assets less                                           
current liabilities         11,938      12,187        14,465
Creditors:  amounts                                         
falling due after more                                      
than one year              (3,611)     (2,625)       (5,903)
Provisions for                                              
liabilities and              (223)       (175)         (244)
charges
                            ------      ------        ------
Net Assets                   8,104       9,387         8,318
                            ------      ------        ------
Capital and reserves                                        
Share capital                3,812       3,812         3,812
Share premium                3,867       3,867         3,867
Revaluation reserve            405         405           405
Profit and loss                 20       1,303           234
account
                           -------     -------       -------
Shareholders' funds          8,104       9,387         8,318
                            ------      ------        ------
                                                            

CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 March 2000

                         Unaudited   Unaudited       Audited
                          6 months 6 months to    year to 30
                             to 31    31 March     September
                        March 2000        1999          1999
                            £000's      £000's        £000's
Cash (outflow)/inflow                                       
from operating                (27)       (654)         (172)
activities
Returns on investments                                      
and servicing of             (525)       (230)         (430)
finance
Taxation                     (327)        (57)          (46)
Acquisitions and             (474)         (5)       (2,748)
disposals
Capital expenditure                                         
and financial                (168)       (498)       (2,640)
investment
Equity dividend paid             -           -         (400)
                            ------      ------        ------
Net cash outflow                                            
before financing           (1,521)     (1,444)       (6,436)
Net cash inflows from                                       
financing                    2,106         202         4,716
                            ------      ------        ------
Increase/(decrease) in                                      
cash                           585     (1,242)       (1,720)
                            ------      ------        ------
                                                            
Reconciliation of operating profit to cash inflow/(outflow) from operating
activities

Operating                       17       (353)         (682)
profit/(loss)
Loss on disposal of                                         
tangible fixed assets            -           -            20
Depreciation charge            673         567         1,112
                                                            
(Increase)/decrease in       (190)         225         (112)
stocks
                                                            
(Increase)/decrease in                                      
debtors                      (863)        (27)          (92)
Increase/(decrease) in                                      
creditors                      336     (1,066)         (418)
                            ------      ------        ------
Cash outflow from                                           
operating activities          (27)       (654)         (172)
                            ------      ------        ------
                                                            
Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in                                      
cash in the period             585     (1,242)       (1,720)
Cash (inflow)/outflow                                       
from                                                        
(increase)/decrease in     (2,014)         608       (4,127)
debt and lease finance
                            ------      ------        ------
Change in net debt                                          
resulting from cash        (1,429)       (634)       (5,847)
flows
Net debt acquired with                                      
subsidiary                       -           -         (123)
New finance leases            (93)       (810)         (589)
Loan notes issued                -           -       (2,000)
Exchange differences          (41)           -            10
                            ------      ------        ------
Movement in net debt                                        
in the period              (1,563)     (1,444)       (8,549)
Net debt at beginning                                       
of period                 (13,041)     (4,492)       (4,492)
                            ------      ------        ------
Net debt at end of        (14,604)     (5,936)      (13,041)
period
                            ------      ------        ------

NOTES TO THE INTERIM STATEMENT
For the six months ended 31 March 2000

1.   The interim results to 31 March 2000 and 1999, which are unaudited, have
     been prepared in accordance with the accounting policies adopted in the
     accounts for the year to 30 September 1999.  The results for the year to   
    30 September 1999 are abridged from the full accounts for that year, which  
   contain an unqualified auditor's report and have been delivered to the       
  Registrar of Companies.  The financial information contained in the           
 interim statement does not constitute statutory accounts within the            
meaning of section 240 of the Companies Act 1985.

2.   Turnover is analysed as:

                                                            
                         Unaudited   Unaudited       Audited
                          6 months 6 months to    year to 30
                             to 31    31 March     September
                             March        1999          1999
                              2000
                            £000's      £000's        £000's
Destination                                                 
UK                           8,821       9,347        17,814
Export                       7,839       2,815         9,961
                            ------      ------        ------
                            16,660      12,162        27,775
                            ------      ------        ------
                                                            
3.   Earnings per share

(Loss)/profit for the                                       
financial year               (226)       (399)       (1,244)
Exceptional items              279           -           660
Tax impact of above                                         
adjustments                   (83)           -          (31)
                            ------      ------        ------
(Loss)/profit for the                                       
financial year before                                       
exceptional items             (30)       (399)         (615)
                            ------      ------        ------
                                No          No            No
Basic weighted average                                      
number of shares         7,624,506   7,624,506     7,624,506
Adjustment for share                                        
options                          -      53,703        53,703
                          --------    --------      --------
Diluted weighted         7,624,506   7,678,209     7,678,209
average number of
shares
                          --------    --------      --------
(Loss)/earnings per         (3.0p)      (5,2p)       (16.3p)
share
Diluted                                                     
(loss)/earnings per         (3.0p)      (5.2p)       (16.2p)
share
Earnings per share                                          
before exceptional          (0.4p)      (5.2p)        (8.1p)
items
                                                            
4.   Taxation has been provided at the estimated effective rate for the full
     year.

5.   Copies of this statement will be available for members of the public at
     the Company's Head Office, Shepcote Lane, Sheffield, S9 1QT.