Interim Results

Croda International PLC
31 July 2002

Wednesday, 31 July 2002


                              Croda International Plc

                         Interim Results Announcement 2002

Croda today announces its interim results for the six months to 30 June 2002:

Highlights

                                                                              2002            2001

Sales for continuing operations                                            £157.2m         £153.2m        + 2.6%

Pre-tax profit before exceptional items                                     £19.2m          £18.5m        + 3.8%

Earnings per share                                                            9.3p            8.4p       + 10.7%

Dividends per share                                                          3.91p           3.85p         +1.6%


•         Sales in key Personal and Health Care markets up by over 6%

•         Pre-tax profit before exceptionals up 4%

•         Oleochemicals trading margin back up to 16%

•         Ongoing demand good and product pipeline strong

•         Interim dividend increased to 3.91p

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

'Following the strong start to the year in our core business, demand has
remained firm with trading profits in our Oleochemicals business showing an
increase over the strong first half of last year.

Ongoing demand and our strong new product pipeline give us confidence that sales
into our key markets will continue to be robust.  Consequently, albeit that our
order cycle is short, we would expect trading in the second half to be closer to
the result in the first half of this year than the weaker second half of last
year.'

For further information, please contact:

Mike Humphrey, Chief Executive                              Tel:  [phone]

Barbara Richmond, Group Finance Director                    Tel:  [phone]

Charlie Armitstead, 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

Profit before tax and exceptional items in the first six months was £19.2m, 4%
ahead of the same period in the previous year.

Sales from continuing operations rose 2.6% overall.  Whilst European zone
markets remain weak we saw strong growth in sales in the Americas and Far East.

The tax rate was 35.9% resulting in earnings per share of 9.3p (2001 8.4p).  The
Board has declared an increased interim dividend of 3.91p (2001 3.85p) payable
to shareholders on 6 January 2003.

Trading

Following the strong start to the year in our core business, demand has remained
firm throughout the first half.  Trading profits in our Oleochemicals business
rose 3.2%.  Margins returned to 16% from the unusually low level in the second
half of 2001.  As well as strong growth in the Americas, sales rose by 13% in
Asia.  This rise in sales, combined with efficiency improvements, means our
Singapore operation is now trading profitably after full financing costs of the
new facility.

The main drivers of growth in the first half have been the Personal and Health
Care markets where sales have risen by over 6% to £86m.

In our other businesses profits again declined and, as we announced recently, we
have decided to withdraw from three of these business areas (solvent recovery,
varnish media and textile chemicals) before the end of this year.  This has
resulted in an exceptional charge on discontinuance of £17m, of which £5.2m is
the write back of goodwill previously written off against reserves and the cash
cost is £3m.

To further strengthen our Oleochemicals business, we have also announced the
closure of two small UK sites in Market Harborough and Bradford with production
being increasingly concentrated on our principal sites at Rawcliffe Bridge, Hull
and Widnes.  These closures have also resulted in an exceptional cost of £1.9m
in the first half bringing the total exceptional charge to £18.9m.

Finance

In the first half of this year we spent £8.5m on capital investment on a number
of projects mainly in our UK Oleochemicals units.  In the current year we have
adopted the new accounting standard on deferred tax FRS 19.  The requirement of
this standard for full provision for deferred tax has reduced our net assets by
£10m.

Despite the strong recovery in trading in the first half, net debt fell to
£63.3m with gearing at 37%.  Interest is covered over nine times by operating
profit.  Goodwill of £0.2m (2001 £0.2m) was amortised through the profit and
loss account.

Outlook

Ongoing demand is good in the Americas and Asia.  Our strong new product
pipeline gives us confidence that sales into our key markets will continue to be
robust.  Consequently, albeit that our order cycle is short, we would expect
trading in the second half to be closer to the result in the first half of this
year than the weaker second half of last year.


Croda International Plc

Results for the six months ended 30 June 2002



Group profit and loss account


Unaudited £m                                  Before    Exceptional        2002            2001            2001
                                         exceptional          items  First half           First            Full
                                               items                      total            half            year
                                                                                  (as restated)   (as restated)

Turnover
Continuing operations                          157.2              -       157.2           153.2           297.0
Discontinued operations                          5.3              -         5.3             9.9            15.4

                                               162.5              -       162.5           163.1           312.4

Operating profit
Continuing operations                           21.7          (1.9)        19.8            21.6            37.4
Discontinued operations                        (0.2)              -       (0.2)             0.1           (0.4)

                                                21.5          (1.9)        19.6            21.7            37.0

Exceptional items                                  -         (17.0)      (17.0)             4.5             2.5
Net interest payable                           (2.3)              -       (2.3)           (3.2)           (5.3)
Profit before taxation                          19.2         (18.9)         0.3            23.0            34.2

UK taxation                                                               (1.4)           (2.0)           (3.4)
Overseas taxation                                                         (5.5)           (5.4)           (9.3)
Tax on exceptional items                                                    1.8           (1.1)           (0.1)

Loss after taxation                                                       (4.8)            14.5            21.4
Minority interests and
   preference dividends                                                   (0.1)           (0.1)           (0.2)

Loss attributable to ordinary
   shareholders                                                           (4.9)            14.4            21.2
Ordinary dividends                                                        (5.1)           (5.1)          (14.7)

Reserves transfer                                                        (10.0)             9.3             6.5



                                                                          pence       pence per       pence per
                                                                            per           share           share
                                                                          share
Earnings per share of 10p
Basic                                                                     (3.7)            11.0            16.2
Basic before exceptional items                                              9.3             8.4            14.4

Diluted                                                                   (3.7)            11.0            16.1
Diluted before exceptional items                                            9.3             8.4            14.3

Ordinary dividends
Interim                                                                    3.91            3.85            3.85
Final                                                                                                      7.45


Note

Net interest payable includes a charge of £0.1m for the six months ended 30 June
2001 that arose in a discontinued associated operation

Summarised balance sheet

Unaudited £m                                                               At                At                At
                                                                      30 June           30 June       31 December
                                                                         2002              2001              2001
                                                                                  (as restated)     (as restated)

Fixed assets                                                            185.0             191.4             194.3
Stock                                                                    59.1              64.7              60.5
Debtors                                                                  96.8             105.4              87.2
Creditors and provisions                                              (107.8)           (109.0)           (103.4)

                                                                        233.1             252.5             238.6

Shareholders' funds                                                     168.6             180.2             173.8
Minority Interests                                                        1.2               1.0               1.2

                                                                        169.8             181.2             175.0

Net debt                                                                 63.3              71.3              63.6

                                                                        233.1             252.5             238.6


Movement in shareholders' funds

Unaudited £m                                                             2002              2001              2001
                                                                        First             First              Year
                                                                         half              half

Loss attributable to ordinary shareholders                              (4.9)              14.4              21.2
Ordinary dividends                                                      (5.1)             (5.1)            (14.7)
Goodwill written back                                                     5.2               4.3               4.3
Currency translation differences                                        (0.4)             (1.4)             (5.0)

Net movement in shareholders' funds                                     (5.2)              12.2               5.8
Opening shareholders' funds                                             173.8             168.0             168.0

Closing shareholders' funds                                             168.6             180.2             173.8





Note

With the exception of the prior year adjustment explained in note 2 there have
been no recognised gains or losses, other than those detailed above, since 31
December 2001

Summarised cash flow


Unaudited £m                                                             2002              2001              2001
                                                                   First half        First half              Year

Operating profit                                                         19.6              21.7              37.0
Depreciation                                                              7.9               7.6              15.2
Goodwill amortisation                                                     0.2               0.2               0.5
Working capital movement                                                (5.1)               0.3              10.5
Other                                                                   (1.8)             (3.4)             (5.2)

Operating cash flow                                                      20.8              26.4              58.0
Interest                                                                (2.3)             (3.1)             (5.4)
Dividends                                                               (5.1)             (4.9)            (14.6)
Taxation                                                                (6.9)             (2.5)             (3.7)
Fixed assets purchase                                                   (8.5)             (9.9)            (23.6)
Net purchase of own shares                                              (0.3)             (1.5)             (1.3)
Acquisitions                                                                -             (1.4)             (1.1)
Disposals                                                                 0.3              29.0              31.1
Other                                                                     0.8             (1.3)             (1.7)

Movement in net debt from cash flows                                    (1.2)              30.8              37.7
New finance lease contracts                                                 -             (0.1)             (0.1)
Exchange differences                                                      1.5             (2.2)             (1.4)

Movement in net debt in the period                                        0.3              28.5              36.2





Exceptional items


Unaudited £m                                                             2002              2001              2001
                                                                        First             First              Year
                                                                         Half              half

Before operating profit

Restructuring costs                                                     (1.9)                 -                 -


After operating profit

Loss on discontinuance of operations
Loss on discontinuance                                                 (11.8)               5.7               3.7
Goodwill written back                                                   (5.2)             (4.3)             (4.3)
                                                                       (17.0)               1.4             (0.6)
Profit on disposal of fixed assets in
continuing operations                                                       -               3.1               3.1

                                                                       (17.0)               4.5               2.5


Segmental analysis of continuing operations

Unaudited £m                                                             2002              2001              2001
                                                                        First             First              Year
                                                                         half              half

Turnover by business sector
Oleochemicals                                                           139.1             132.8             258.8
Other                                                                    18.1              20.4              38.2
                                                                        157.2             153.2             297.0

Trading profit
Oleochemicals                                                            22.3              21.6              37.9
Other                                                                     1.7               2.2               3.5
                                                                         24.0              23.8              41.4

Central costs                                                           (2.3)             (2.2)             (4.0)
                                                                         21.7              21.6              37.4

Turnover by geographical destination
United Kingdom                                                           26.7              27.2              52.5
Rest of Europe                                                           41.2              42.5              80.0
Americas                                                                 53.6              49.9              95.9
Asia                                                                     21.5              19.0              38.9
Rest of World                                                            14.2              14.6              29.7
                                                                        157.2             153.2             297.0

Turnover by market sector
Personal and Health Care                                                 86.2              81.1             155.5
Home Care and Plastics Additives                                         22.4              21.4              43.4
Industrial Specialities                                                  30.5              30.3              59.9
Other                                                                    18.1              20.4              38.2
                                                                        157.2             153.2             297.0
Notes to the interim report

1.     The interim dividend of 3.91p will be paid on 6 January 2003 to
shareholders registered on 6 December 2002.

2.     The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's 2001 statutory accounts with the
exception of the change in accounting policy for deferred taxation arising from
the required adoption of Financial Reporting Standard 19.  The previous policy
of the Group was to provide for taxation on the timing differences between
profits computed for taxation purposes and profits per the financial statements
only to the extent that such taxation was likely to be payable in the
foreseeable future.  FRS 19 requires that full provision be made for deferred
taxation.  This change in accounting policy results in a prior year adjustment,
reducing shareholders' funds at 1 January 2001 by £10.6m and increasing the pre
exceptional taxation charges by £0.9m and £1.7m for the half year ended 30 June
2001 and year ended 31 December 2001 respectively and reducing the tax charge on 
exceptional items by £1.9m and £2.4m for the same periods.  The pre exceptional 
tax charge for the half year ended 30 June 2002 has increased by £0.6m and the 
tax credit on exceptional items increased by £1.2m due to the change in 
accounting policy.

3.     The financial information for the year ended 31 December 2001 is
abridged.  Full accounts for that year, on which the Auditors of the Company
made an unqualified report, have been delivered to the Registrar of Companies.

4.     This statement has been sent to all shareholders and can be obtained by
the public from the Company's registered office, Cowick Hall, Snaith, Goole,
East Yorkshire DN14 9AA.




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