Final Results

Croda International PLC
23 February 2005


    Date:  Wednesday, 23 February 2005



                         Croda International Plc

                 Preliminary Results Announcement 2004


Croda today announces its preliminary results for the year ended 31 December 
2004:


         Highlights



         •  Pre-tax profit on continuing operations up 16% to £45.2m

         •  Pre-tax profit post-exceptionals of £41.7m (2003 : £43m)

         •  Oleochemicals record trading margin of 17.9% (2003 : 16.8%)

         •  Pre-exceptional earnings per share up 16% to 22.2 pence

         •  Basic earnings per share of 20.1 pence (2003 : 22.5 pence)

         •  Dividend increased 5.5% to 12.5 pence

         •  Net debt reduced to £14.8m (2003 : £29m)


Commenting on the results, Chairman, Antony Beevor, said:


'In 2004, sales in sterling terms were 4.0 per cent up on 2003 and pre-tax
profits improved by over 16 per cent for our continuing businesses.  This growth
was entirely organic, capitalising on the inherent strengths of our core
business.


Against the trend of recent years, the second half of 2004 was as strong as the
first in both sales and profits.  Our momentum has continued into the new year.
We believe the opportunities in our business enable us to look forward with
confidence.'


For further information, please contact:

Mike Humphrey, Chief Executive                Tel:   [phone]
                                              then 01405 860551
Barbara Richmond, Group Finance Director


Andrew Dowler, Financial Dynamics             Tel:   [phone]


Or visit our web site at:  www.croda.com where the presentation to analysts will
be available by midday today.


                         Chairman's Statement 2004


Pre-tax profits on continuing operations before exceptional items in 2004 were
£45.2 million, compared with £38.9 million the previous year, on sales of £291.1
million (2003 £279.8 million).  A small loss on discontinued businesses' trading
and an exceptional loss arising on the disposal of the same non-core operations
leaves Group pre-tax profits at £41.7 million, compared to £43.0 million the
year before.



In 2004, sales in sterling terms were 4.0 per cent up on 2003 and pre-tax
profits improved by over 16 per cent for our continuing businesses.  In constant
currency terms, sales would have been up by 10 per cent and the increase in
pre-tax profits would have been significantly higher.  Pre-exceptional earnings
per share amounted to 22.2 pence, after a tax charge of 35.3 per cent, an
increase of over 15 per cent on 2003 (basic earnings per share were 20.1 pence
compared to 22.5 pence in 2003).  Therefore, your Board is recommending a 7 per
cent increase in the final dividend to 8.4p, making a total for the year of
12.5p, covered 1.8 times before exceptional items (1.6 times after exceptional
items).  After spending a net £4.9 million on buying back shares, net debt at
the year end was £14.8 million, equivalent to 8.7 per cent of net assets.



The growth we have achieved in sales and profits in 2004 was entirely organic,
capitalising on the inherent strengths of our core business.  Our performance is
the product of hard work over a period of years by our technical sales forces
around the world, and the scientists behind them, in winning the confidence of
our multinational customers in our talent for innovation, in our ability to
deliver what we promise and in our commitment to continuing development to
improve their products still further.



Good growth last year came again from our actives businesses, and from a wide
cross section of group businesses, sometimes under difficult conditions.  The UK
manufacturing businesses coped well with the sharply appreciating sterling/
dollar exchange rate.  North America performed well after a difficult second
half in 2003 and sales ended the year on a high note.  Our remaining Other
businesses also had a much improved year.


Strategy


Considerable emphasis is being put on driving the organic growth of the
business.  From January 2005, a member of the Executive Committee is leading a
major initiative to bring new technologies to the Company.  We believe this
could contribute significantly to our business in the future.  However, we will
not ignore opportunities for acquisitions in areas of business where we have
expertise and which bring real and ongoing synergies.  Such targets are few in
number and only rarely become available, but the strength of our balance sheet
will be of great assistance when they do.  At the same time, we recognise the
importance of using our balance sheet efficiently and we are continuing to buy
in shares as the opportunity arises.


Culture


Our Leadership Development Group, a group of present and future senior managers
which meets regularly to discuss strategic matters, this year set out to define
the corporate values of Croda.  Under the leadership of the Chief Executive,
they did so in a way which I believe will ensure that we remain a place where
talented people want to work and that we conduct ourselves to the highest
standards and in a way which will also ensure the future reputation and
sustainability of the business.



The time and effort we put into the areas of safety, health and the environment
is part of this culture.  This is born from the belief that high standards in
these areas are fundamental to the long term health of our business.  The
detailed report included in our Annual Report, to be published next month will
show that, having been successful in meeting our previous targets, we are making
good progress towards the more demanding set of objectives we have now set
ourselves.


People


The group referred to above is just one of the steps we take to ensure that we
have the talent to continuously drive the growth of the business.  Wherever
possible, we feel there is merit in filling vacancies internally.  I believe
that our internally generated performance in 2004 is evidence that we have a
good resource of such talent available.  I would like to thank them for their
efforts last year as well as for the contribution they will undoubtedly make in
the future.  We will be submitting to the Annual General Meeting proposals for a
Co-Investment Scheme and an LTIP which will align the interest of senior
employees with shareholders and enable them to build equity interests in the
Group.


Prospects


Against the trend of recent years, the second half of 2004 was as strong as the
first in both sales and profits. Our momentum has continued into the new year.
World economic prospects are difficult to read at present but we believe the
opportunities in our business enable us to look forward with confidence.


Operating Review


40 years ago, in 1964, a small Yorkshire company floated on the London Stock
Exchange.  In its first year as a public limited company, it had sales of £2.5m
and pre-tax profits of £232,000.  It was a niche manufacturer of ingredients
based on renewable natural resources, sold globally, mainly to the Personal and
Health Care markets.  Its lifeblood was innovation and dynamic marketing.  It
was called the Croda Organisation Ltd.


It is now much bigger, much more successful and has a slightly different name -
Croda International Plc.



In 1964 Croda was a UK manufacturer with large exports and a nascent overseas
network.  Today, we are still heavily committed to the UK but half our employees
work overseas and the global technical sales and marketing network is the envy
of our competitors.  Then, we were a small player in many markets, selling a
range of oleochemical based products.  Now, we are a large player in a few
markets, selling a range of truly differentiated specialities based mainly on
oleochemicals.  This strong progress up the value chain has produced the
excellent results for 2004.



Sales on continuing operations were up by 4% (10% in constant currency) and
pre-tax profits by over 16%.  In spite of a plethora of raw material cost
increases, we maintained the strong margin performance of recent years.  We were
also affected by the weakness of the US dollar, which reduced our reported
profits.  We continued to focus the innovation skills of the Company on our
chosen markets and launched a record number of new products.  Products which add
value for our many customers worldwide.  We also continued our drive for cash
generation, in parallel with ongoing investment in new plants and processes
which will contribute to our future success.



Sales in the UK from continuing businesses were up by almost 3%, with sales in
the rest of Europe effectively flat compared to 2003.  It was a mixed
performance, with very good progress in France and Poland, offset by weaker
markets in Germany, Italy and Spain.  This is not wholly surprising after the
excellent growth in our total European sales in 2003.



After a relatively poor 2003, sales in the Americas bounced back with a
vengeance.  Sales in the USA were up 7% in Sterling;  in US dollars they were up
a creditable 19%.  In the rest of the Americas growth was even higher, with
sales up by nearly 14% in Sterling terms.  All countries grew, with more notable
increases in Brazil, Mexico, Colombia and Venezuela.

In Asia we saw a more heterogeneous picture.  Sales from continuing businesses
were up by over 10% in Sterling and there was especially strong growth in Japan,
China and Thailand.  Sales in the Middle East were flat, mainly due to the
ongoing conflict in the region.  Sales in Africa and Australasia were also
relatively disappointing.



Once again there was good growth in Personal Care.  Our sales into Health Care
grew very strongly.  In Plastics Additives, we saw reduced sales volumes but a
welcome return of margin, as a series of price increases reversed the dismal
trend of recent years.



The process of restructuring the portfolio is almost complete.  During 2004, we
sold our small rock anchor business in Australia, which left Croda businesses
outside the UK entirely focussed on speciality oleochemicals for the first time
in nearly 40 years.



I am delighted to report that once again our SAP rollout programme was a
resounding success.  Our Singapore operations went live in quarter two, Crodarom
went live in quarter four and our large and complex operations in North America
followed suit in January 2005.  It is a credit to all involved that they were
all virtually problem free.  This bodes well for our remaining manufacturing
units, Sederma and Japan, who go live in 2005 and 2006 respectively.



We maintained our strong emphasis on cash generation and finished the year with
gearing below 10% even after buying over £6m of shares into treasury.



We also increased our emphasis on R & D and our global sales and marketing
network.  We grew the teams in our chosen areas of focus, launched many new
products and gained excellent new business in all areas.



We increased our capital expenditure around the globe.  We successfully
commissioned a substantial expansion of our lipids plant at Leek.  We brought on
stream an exciting new plant at Rawcliffe Bridge to improve both quality and
capacity for high value lanolin derivatives.  We expanded capacity in Brazil,
de-bottlenecked parts of our Singapore plant and continued the radical rebuild
and expansion of our Mill Hall facility in the USA.  Sederma successfully
completed a substantial expansion of its operating facilities near Paris.  We
have more plans for upgrades and capacity additions across nearly all our units
in 2005.


                           Oleochemicals
                                          2004                  2003
Turnover £m                              274.0                 261.6
Trading Profit £m                         49.0                  44.0 
Margin %                                  17.9                  16.8
Capital Employed £m                      188.4                 187.1
ROC %                                     26.0                  23.5


The core oleochemical specialities business performed strongly in 2004.  On a
continuing operations basis, it now represents 94% of Group turnover and trading
profit.  The continuing focus on value over volume produced a trading profit
increase of over 11% on a sales increase of just under 5%.  The record margin of
17.9% proves that it is a true speciality business with pricing power.  This
margin was achieved despite a number of raw material and utilities cost
increases, together with a particularly unfavourable currency environment.



We continue to outperform in our major market, Personal Care.  The Actives
businesses, especially Sederma, achieved significant progress across the world,
with sales of new functional products growing strongly.  Important new product
launches in all areas of Personal Care from all of our operating companies
should help to underpin future growth.



Health Care sales grew strongly once again and, with new capacity available,
this business has a strong platform for progress.  None of the major
pharmaceutical projects has yet contributed, but further steps towards launch
have been made by a number of our customers, especially Tillotts, where Phase
III clinical trials are well underway on the treatment for Crohn's disease.  We
also see some excellent longer term opportunities for Medilan in wound
treatment.



The Home Care business grew strongly.  The demand for innovation by our
customers in this area is increasing rapidly.  This was an historically
conservative customer base, but margin pressure from the major supermarkets has
triggered a step change.  Many more new functional products are being launched,
highlighting perceivable benefits.  A good example is the increase in sales of
the Coltide range of proteins for fabric conditioning.



It is also pleasing to report a stronger performance in Plastics Additives in a
firmer global pricing environment.  Croda Food Services had a record year for
both sales and profits.



The European operations coped well with flat macroeconomic conditions in major
markets and a difficult currency situation, especially in relation to the US
dollar.  We increased output at all our European sites.  R & D was focussed and
successful, and the sales operation delivered.



The USA really bounced back from the disappointments of 2003 and produced
excellent growth.  The rest of the Americas were even better.  Again, new plant
in Brazil and the USA, combined with a new North American headquarters and
technical centre in Edison, New Jersey, gave impetus to our performance in these
exciting markets.



In Asia, we expanded strongly and improved both the number and quality of our
technical marketing and sales people.  Output increased again from the Singapore
plant and new product development accelerated at our plant in Shiga in Japan.
China continues to be the engine of growth for the region and our sales into
this important country are more than keeping pace.



Our customer base continues to change and grow.  However, in spite of further
major merger activity amongst our clients, no one customer globally represents
more than 3% of our total turnover.  In fact, our top ten customers represent
less than 15% of turnover.


                                 Other
                                         2004                 2003
Turnover £m                              17.1                 18.2
Trading Profit £m                         3.1                  2.2
Margin %                                 18.1                 12.1
Capital Employed £m                      13.3                 13.2
ROC %                                    23.3                 16.7



Results in this sector were mixed, but on the whole it was a very good
performance from these smaller businesses.  The margin is a little misleading,
as it is flattered by the inclusion of our share of the excellent profits from
our associate, Baxenden Chemicals.



The fall in sales was due to the continued withdrawal of Seatons from low
margin, commodity business.  Seatons had an excellent year and is now a very
successful and profitable unit.  Croda Application Chemicals did well in very
difficult markets, showing a welcome move forward in profit on a slight fall in
sales.



During the year we sold Celtite, our rock anchor business in Australia and
completed the sale of our Fire Fighting Chemicals business in Europe.  Their
results are reported under discontinued operations.



Summary



This was a year of good progress for all our teams across the globe.  Croda is
robust, dynamic and full of optimism that we can deal with the challenges of the
future as well as we have dealt with the challenges of the recent past.  Our
people and our products are terrific and our corporate intellectual capital is
second to none in our markets.  Although we will maintain our focus on suitable
acquisitions, we are confident in our ability to grow organically.  To
accelerate this process, we have allocated substantial funds to a new internal
venture - Enterprise Technologies.  Dr Keith Layden is leading this bold move to
bring in new technology to the Group.  We can and we will strive to deliver
value to all our stakeholders.



I mentioned it was 40 years since Croda became a public company.  I would like
to quote from Sir Frederick Wood's operating review from the first Annual Report
following that event:-



'It has been in many ways a difficult year and the successful outcome is,
therefore, all the more pleasing.  Many of our markets have been more
competitive and our raw material supplies have been subject to price variations.
  Costs, particularly wages and salaries, continued to rise steadily.  Much
valuable time, which could be better spent on constructive tasks, has been taken
up in grappling with new regulations and laws.  Growth has been achieved by
carefully planned capital expenditure, constant attention to costing, the
efforts of an aggressive sales force and a rise in the productivity of our
works.'


Some things never change.


                                Financial Review

Trading


We continued to make good progress in 2004, with reported sales from continuing
operations up 4% at £291.1m.  It is important to note, however, that the weak
dollar had a significant negative impact on our sales.  This is due to the fact
that, not only do we have a large business in the USA, but also a number of our
products are priced worldwide in US dollars.  In constant currency terms our
sales from continuing operations would have been up by 10% on the previous year.



Sales volumes in the Oleochemicals business were up 3% year on year.  With our
continued shift to higher added value products and away from commodities in our
Other businesses, volumes fell in that sector.  Overall for the Group, volumes
were up 1%.



Operating margins reached a record high of 17.9% in the Oleochemicals sector,
due to a combination of product mix changes and price increases, combined with
the higher sales volumes.  Profits in the Other sector also rose, due primarily
to price increases and improved product mix, along with the benefits of last
year's restructuring.



The discontinued operations shows the results up to disposal of our Fire
Fighting Chemicals business, sold in January 2004, and our Australian rock
anchor business, sold in July 2004 and the exceptional items represent the net
loss on disposal of these discontinued operations.



Interest



Our net interest expense appears high, given our gearing level.  This is due to
the fact that our US dollar private placement debt is at a fixed rate of 7.37%.
Also, because of the wide geographical spread of our business, it is not always
possible to match positive and negative cash balances between many countries.



Taxation



The tax charge of 35.3% on pre-exceptional profits reflects the geographical
spread of our businesses and no significant change in the charge is expected in
the current year.  The actual tax charge is slightly higher at 36.5% as no tax
relief is available on some of the exceptional losses.


Dividends


With strong growth in earnings and good cash generation, we are able to increase
the total dividend payment by more than inflation, whilst at the same time
increasing dividend cover on a pre-exceptional basis.


Accordingly, it is proposed the final dividend is increased by 7% to 8.4p,
making a total of 12.5p (2003 : 11.85p).  At this level, dividend cover is
raised to 1.8 times from 1.6 times in 2003.


Cash


With the good trading performance I mentioned earlier and control of working
capital, we generated £12.9m of cash in 2004.



Capital expenditure rose to £14.9m (2003 : £12.3m) which was approximately in
line with depreciation of £14.4m (2003 : £14.6m).


We began buying shares back into treasury towards the end of 2004.  We believe
this is a flexible and efficient way for us to improve our cost of capital,
whilst at the same time maintaining our financial capacity to undertake
appropriate acquisitions which will deliver shareholder value.


Treasury Policy


The Group's treasury policies are approved by the Board and subject to regular
reporting and review.



The main financial risks faced by the Group relate to currency, interest rates
and the availability of capital.



As far as currency risk is concerned, transaction risk is hedged up to three
months forward by the use of foreign currency bank balances and forward currency
contracts.  Translation currency exposure is not hedged but the risk is reduced
by matching interest expense to foreign currency earnings where it is efficient
to do so.



In terms of interest rate risk, the policy is to maintain at least half of the
Group's gross borrowings at floating interest rates, with interest rate swaps
being used where appropriate.



On 1 December 2003 the UK regulations on the market purchase and holding of a
company's own shares (Treasury Shares) were amended to enable companies to
achieve more flexibility on their levels of debt and equity and thus their cost
of capital. These changes give us an additional means of managing our Balance
Sheet, if and when considered appropriate by your Board.



IFRS



As many of you will already be aware, we will be required to produce our
accounts in accordance with International Accountancy Standards (IAS and IFRS)
from 2005.  The first set of results reported under these standards will be the
interim results for the six months to 30 June 2005.  However, in order for
shareholders and other readers of the accounts to become familiar with the
impact of this change, we intend to publish on our website (www.croda.com),
during the course of the second quarter of 2005, a profit and loss account and
balance sheet for 2004, restated to international standards, together with an
explanation of the main differences from the reported results in these accounts.



Along with many companies, the adoption of international standards will
principally impact our accounts in three areas:



•   Pensions
•   Goodwill
•   Share based payments


There will also be some impact from the standards on financial instruments and
deferred tax but these are expected to be small.


Overall, we estimate the principal effect of the new standards will be on the
balance sheet.  This is due to the major change caused by the switch from SSAP
24 to IAS 19, which is similar to FRS 17.   The effect of this on our UK pension
scheme, as in previous reports, is detailed below.



Pensions

The table below summarises the UK pension position of the Group at 31 December
2004 under the current Standard, SSAP 24, under FRS 17 (IAS 19) and as
calculated at the latest actuarial valuation.


                                    2002            2004            2004            2003            2003
                                  Actuarial        SSAP 24         FRS 17          SSAP 24         FRS 17

                                     £m              £m              £m              £m              £m

Asset/(liability)                  (35.1)           35.6           (94.6)           33.1           (91.8)
Deferred tax                        10.5           (10.7)           28.4           (10.0)           27.6
Net asset/(liability)              (24.6)           24.9           (66.2)           23.1           (64.2)


The net pension balances under both standards have changed only marginally from
2003.  This is because, whilst there has been some further recovery in equity
markets, the rate at which liabilities are discounted has also fallen.  As I
have reported previously, it is the actuarial position which forms the basis of
our long term funding decisions and not the accounting year end snapshot.


Below is a table showing the charge to the Profit and Loss Account for our UK
schemes under the two Accounting Standards, together with an estimate of the
2005 expense.  As you can see, our profit would have increased by £0.3m if we
had applied FRS 17 in 2004 in respect of our UK schemes.

                               2005 Estimated                   2004
                                  FRS 17          SSAP 24       FRS 17
                                    £m               £m           £m
Before operating profit            4.8              4.4          4.6
Financing                         (0.8)               -         (0.5)
Net cost                           4.0              4.4          4.1




Croda International Plc

Preliminary announcement of trading results for the year ended 31 December 2004

Group profit and loss account

                                   Continuing       Discontinued        2004     Continuing    Discontinued      2003
                                   operations         operations       Total     operations      operations     Total

                                           £m                 £m          £m             £m              £m        £m

Turnover                                291.1                3.3       294.4          279.8            23.6     303.4
                                      _______              _____      ______        _______           _____    ______

Operating profit

Group operating profit                   44.7              (0.2)          44.5         39.6           (0.2)      39.4
Share of associates'                      2.6                 -            2.6          2.2              -        2.2

operating profit                                                                                        

profit
                                       ______              _____         _____      _______           _____     _____
Total operating profit                   47.3              (0.2)          47.1         41.8           (0.2)      41.6

Exceptional items                           -              (3.3)         (3.3)            -             4.3       4.3

Net interest payable                    (2.1)                  -         (2.1)        (2.9)               -     (2.9)
                                       ______              _____         _____      _______           _____     _____
Profit before taxation                   45.2              (3.5)          41.7         38.9             4.1      43.0
                                       ______              _____                    _______           _____

UK taxation                                                              (3.6)                                  (2.9)
Overseas taxation                                                       (12.3)                                 (10.8)
Tax on exceptional items                                                   0.7                                      -
                                                                         _____                                  _____
Profit after taxation                                                     26.5                                   29.3

Minority interests and preference dividends                              (0.2)                                      -
                                                                         _____                                  _____
Profit attributable to ordinary shareholders                              26.3                                   29.3

Ordinary dividends                                                      (16.3)                                 (15.5)
                                                                         _____                                  _____

Reserves transfer                                                         10.0                                   13.8
                                                                         _____                                  _____



Earnings per share                                                Pence per                             Pence per

                                                                      share                                 Share

Basic                                                                  20.1                                  22.5
Basic before exceptional items                                         22.2                                  19.2

Ordinary dividends

Interim                                                                4.10                                  4.02
Final                                                                  8.40                                  7.83



Summarised balance sheet

                                                              At 31 December              At 31 December
                                                                        2004                        2003
                                                                          £m                          £m

Fixed assets                                                           144.1                       150.3
Stock                                                                   52.0                        51.8
Debtors                                                                 90.5                        90.4
Cash at bank and in hand                                                32.4                        27.8
Creditors falling due within one year                                 (81.5)                      (86.9)
Creditors falling due after one year                                  (32.6)                      (37.6)
Provisions for liabilities and charges                                (34.0)                      (32.2)
                                                                      ______                      ______
                                                                       170.9                       163.6
                                                                      ______                      ______


Shareholders' funds                                                    170.1                       162.4
Minority interests                                                       0.8                         1.2
                                                                      ______                      ______
                                                                       170.9                       163.6
                                                                      ______                      ______


Movement in shareholders' funds

Profit attributable to ordinary shareholders                            26.3                        29.3
Ordinary dividends                                                    (16.3)                      (15.5)
Goodwill written back on disposal                                        3.4                           -
Currency translation differences                                       (0.8)                         1.4
Transactions in own shares                                             (4.9)                       (0.2)
                                                                      ______                      ______

Net movement in shareholders' funds                                      7.7                        15.0
Opening shareholders' funds                                            162.4                       147.4
                                                                      ______                      ______
Closing shareholders' funds                                            170.1                       162.4
                                                                      ______                      ______


Note
There were no other recognised gains or losses except for those detailed above.



Summarised cash flow



                                                                        2004                        2003
                                                                          £m                          £m


Group operating profit                                                  44.5                        39.4
Depreciation                                                            14.4                        14.6
Amortisation                                                             0.4                         0.5
Working capital                                                        (1.2)                         3.6
Other                                                                  (2.4)                         0.8
                                                                      ______                      ______

Operating cash flow                                                     55.7                        58.9


Interest                                                               (2.3)                       (2.8)
Dividends paid                                                        (15.6)                      (15.1)
Taxation                                                              (12.5)                      (12.2)
Fixed assets purchased                                                (14.9)                      (12.3)
Sale of fixed assets                                                     1.3                         4.9
Net purchase of own shares                                             (4.9)                       (0.2)
Disposals                                                                8.0                           -
Other                                                                  (1.9)                       (1.1)
                                                                      ______                      ______

Movement in net debt from cash flows                                    12.9                        20.1
New finance lease contracts                                            (0.1)                       (0.1)
Exchange differences                                                     1.4                         3.1
                                                                      ______                      ______

Movement in net debt in the period                                      14.2                        23.1

Net debt brought forward                                              (29.0)                      (52.1)
                                                                      ______                      ______

Net debt carried forward                                              (14.8)                      (29.0)
                                                                      ______                      ______



Notes to the preliminary announcement

1.   Segmental analysis of continuing operations
                                                                     2004                        2003
                                                                       £m                          £m                   
                                                                              
      Turnover
      Oleochemicals                                                 274.0                       261.6
      Other                                                          17.1                        18.2
                                                                   ______                      ______
                                                                    291.1                       279.8
                                                                   ______                      ______

      Trading profit
      Oleochemicals                                                  49.0                        44.0
      Other                                                           3.1                         2.2
                                                                   ______                      ______
                                                                     52.1                        46.2

      Central costs                                                 (4.8)                       (4.4)
                                                                   ______                      ______
      Operating profit                                               47.3                        41.8
                                                                   ______                      ______

      Turnover by geographical destination

      United Kingdom                                                 44.9                        43.7
      Rest of Europe                                                 87.8                        88.0
      Americas                                                       97.4                        89.3
      Asia                                                           41.0                        37.1
      Rest of World                                                  20.0                        21.7
                                                                   ______                      ______
                                                                    291.1                       279.8
                                                                   ______                      ______

      Turnover by market

      Personal and Health Care                                      178.2                       164.5
      Home Care and Plastics Additives                               40.5                        39.9
      Industrial Specialities                                        55.3                        57.2
      Other                                                          17.1                        18.2
                                                                   ______                      ______
                                                                    291.1                       279.8
                                                                   ______                      ______

2.         Exceptional items

      Disposal and closure of

      discontinued operations

      Profit/(loss) on disposal                                     (0.5)                         1.2
      Goodwill written back                                         (3.4)                           -
                                                                   ______                      ______
                                                                    (3.9)                         1.2

      Profit on disposal of fixed assets                              0.6                         3.1

      in discontinued operations
                                                                   ______                      ______
                                                                    (3.3)                         4.3
                                                                   ______                      ______


3.         Shareholders' funds

         Throughout this announcement shareholders' funds include non-equity interests of £1.1m.

4.         Additional matters

a.       The financial information above is derived from the Group's full statutory accounts on which
         the auditors have reported;  their report was unqualified and did not contain a statement
         under section 237(2) or (3) of the Companies Act 1985.  Statutory accounts for 2003 have
         been filed with the Registrar of Companies and those for 2004 will be delivered following
         the Annual General Meeting.

b.       The proposed final dividend of 8.4p will be paid on 7 July 2005 to shareholders registered
         on 3 June 2005.

c        The above financial information has been prepared on the basis of the accounting policies
         which are to be set out in the Group's 2004 statutory accounts, and in accordance with all
         applicable UK accounting standards and the Companies Act 1985.  The accounting policies are
         consistent with those applied in previous years as set out in the Group's 2003 statutory
         accounts.






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