Interim Results

Acal PLC
02 December 2002





FOR RELEASE                        7:00AM                 2 DECEMBER 2002





                                    ACAL plc



 (Leading pan-European, value added distributor providing specialist design-in,
           sales and marketing services for international suppliers)



Unaudited Interim Results for the Six months to 30 September 2002

                                                                       2002             2001       Change

Turnover                                                            £140.2m          £145.9m          -4%

Group earnings before interest, taxes and goodwill                    £8.2m            £9.7m         -15%
amortisation

Profit before tax (pre goodwill amortisation)                         £7.3m            £8.4m         -13%

Earnings per share (pre goodwill amortisation)                        18.5p            21.3p         -13%

Dividend                                                               6.7p             6.1p         +10%



 • Sales and profits in line with expectations
 
 • Gross margin sustained at 23.6%

 • Earnings per share before goodwill 18.5p (2001: 21.3p)

 • Interim dividend up 10%

 • Net debt of £21.1m (2001: £24.7m) - interest cover 9.7 times (2001: 7.8 times)

 • Successful acquisition of ATM






For further information:

John Curry Chairman                                                 01483 544500

Jim Virdee Finance Director                                         01483 544500

Brian Coleman-Smith / Amanda Sheehy                                020 7398 3300
Beattie Financial


Notes to Editors:


1                     The Acal Group is a leading European, value-added
distributor providing specialist design-in, sales and marketing services for
international suppliers in the fields of Electronic Components, Information
Technology Products, IT Parts Services and Industrial Controls.  Its value-added
philosophy and geographic coverage enables Acal to provide specialist knowledge
and support to customers on a pan-European basis.


2                     Design-in is the process by which Acal's sales engineers
work with customers and suppliers to procure components which meet the specific
technical and performance needs of the customers.


3                     Acal has operating companies in the UK, Netherlands,
Belgium, Germany, France, Italy, Scandinavia and the USA.




                         Chairman's Statement

Results



Against a background of continuing tough conditions in all geographical markets,
results are in line with our expectations.  Group sales for the first half-year
were £140.2m (£145.9), down 4% compared to the same period last year.  However,
excluding acquisitions and disposals, like-for-like sales were down 7%.
Operating profit before interest, taxes and goodwill amortisation reduced 15%
from £9.7m to £8.2m, providing profit before tax and goodwill amortisation of
£7.3m (£8.4m).  After an effective tax charge of 34.0% (34.5%), the underlying
earnings per share before goodwill amortisation is 18.5p (21.3p) - 13% lower.



Review of Operations



The second quarter of the financial year failed to maintain the modest momentum
that had developed in the first quarter, pushing any upturn further into the
future.



The reduction in sales year-on-year is almost entirely in the Electronic
Components Division where sales fell 22%.  In the first half of last year, sales
in this division were bolstered by orders placed in the boom times of 2000 and
the first four months of calendar 2001.  Electronic Components sales for the
past three half-year periods have been as follows:  £62.2m, £53.0m and for the
six months ended 30 September 2002 £48.4m.  Orders and sales are now running at
similar levels.   On the other hand I am pleased to report that IT Products and
IT Services continue to see growth year-on-year, at single digit percentage
rates.



Book-to-bill ratios have returned to close to 1.0 for the Group since April,
although there still remains some weakness in Electronic Components and
Industrial Controls.  Also, for the ongoing Group as a whole, order growth
year-on-year has been achieved in the first half.



Encouragingly, gross margins have been sustained across the board, averaging
23.6% and with the sale of our Cisco distribution business we will see an
increase in our average gross margin in the second half of the year.



We have maintained overheads at the same level since the beginning of last year
when we made a reduction of close to 10% to the run rate.  We have not made any
significant change since that date because, although profits are down, the
profit on sales, and return on trading assets continue to be at acceptable
levels at this point of the economic cycle.  In our view any further cut in
overheads would impinge on our ability to create and take advantage of future
opportunities.



In difficult times major problems can arise in inventory management; however we
have successfully reduced inventory levels in line with current sales without
any serious write-offs.  Operational management are to be congratulated for the
reduction from a peak stock level in May 2001 of in excess of £40m to the
current level of £28m, a 30% reduction, and it is now at the correct level and
in line with ongoing sales.



With strong asset management, net debt at 30 September 2002 was £21.1m (£24.7m)
even after the payment of £8.0m on completion of the acquisition of ATM Parts
Company Ltd ("ATM"), and interest cover was 9.7 times (7.8 times).



Dividend



The Board has declared an interim dividend of 6.7p per share (6.1p), an increase
of 10%, to be paid on 24 January 2003 to shareholders on the register on 13
December 2002. In spite of an earnings decrease, your Board has increased the
dividend reflecting our confidence in the long term future of the business.



Acquisitions and Disposals



In the Annual Report I commented on the acquisition of ATM in April 2002.  This
has fitted well into our IT Parts Services division and I am pleased to report
is performing up to expectations. The first performance-related payment due in
December 2002 will be £1.6m.



On 14 October 2002 we announced the sale of the Cisco distribution business,
part of our networks business in the IT Products Division.  The sale proceeds
and realisation of assets since 31 March 2002 will reduce debt by about £5.5m.
Although we were selected as a Cisco Distribution Partner last year, the nature
of the business going forward did not fit our strategic and financial model.  In
the long-term our and Cisco's objectives would have come into conflict and it
was therefore in our shareholders' and employees' best interests to find a more
suitable owner and sell the business.



The difficult economic climate provides opportunities and we have been actively
looking for acquisitions that fit with the Group strategy.



Board Changes



On 1 August 2002 we announced the appointment of Eric Barton as a non-executive
director.  He has been involved with technology companies since 1968 and was a
director of 3i plc from 1986 to 1999.  He is currently a director of Morse plc,
Informa Group plc, Telecity plc and a venture capital backed company.  His
experience in Acal's field of operations "the distribution of technology" has
already proved valuable.



Prospects



The economic climate remains tough and uncertain.  General expectations of the
resumption of growth have been deferred for the foreseeable future, and
certainly beyond this current financial year.  Nevertheless we remain confident
of our ability to continue to develop the business in these challenging markets.





John Curry
2 December 2002




                                    ACAL plc

                 Unaudited Summary Profit and Loss Account for
                       Six Months ended 30 September 2002
                                                                                           
                                                                    Six Months ended          Year ended 31
                                                                      30 September                March
                                                                   2002            2001            2002
                                                                                                (audited)
                                                                  £'000           £'000            £'000
Turnover
  Continuing business
    Ongoing activities                                          126,797         136,455           272,633
    Activities sold (note 3)                                      9,295           9,426            24,380
    Acquisition                                                   4,150               -                 -
                                                                140,242         145,881           297,013

Operating Profit
  Continuing business                                             6,931           8,806            17,552
  Goodwill amortisation                                         (1,234)         (1,232)           (2,614)
                                                                  5,697           7,574            14,938
  Acquisition                                                       979               -                 -
  Goodwill amortisation                                           (139)               -                 -
                                                                    840               -                 -


Group Operating Profit (excluding Associates)                     6,537           7,574            14,938
Group Share of Operating Profits of Associates                      250             847             1,119

Total Operating Profit (including Associates)
  Excluding goodwill amortisation                                 8,161           9,654            18,673
  Goodwill amortisation                                         (1,374)         (1,233)           (2,616)
                                                                  6,787           8,421            16,057

Net interest payable - group                                      (778)         (1,127)           (1,905)
Net interest payable - associates                                  (62)           (105)             (161)

Profit before Taxation
  Excluding goodwill amortisation
  Continuing business                                             6,510           8,422            16,607
     Acquisition                                                    811               -                 -
  Goodwill amortisation                                         (1,374)         (1,233)           (2,616)

Profit on Ordinary Activities before Taxation                     5,947           7,189            13,991

Tax on Profit on Ordinary Activities:
   United Kingdom                                               (1,535)         (1,561)           (3,217)
   Overseas                                                       (903)         (1,112)           (2,118)
   Associates                                                      (54)           (205)             (230)
                                                                (2,492)         (2,878)           (5,565)
Profit on Ordinary Activities after Taxation
  Excluding goodwill amortisation                                 4,829           5,544            11,042
  Goodwill amortisation                                         (1,374)         (1,233)           (2,616)

Profit Attributable to Ordinary Shareholders                      3,455           4,311             8,426

Dividends on Ordinary Shares                                    (1,752)         (1,588)           (4,769)

Retained Profit for the Period                                    1,703           2,723             3,657

Earnings per Share                                                13.2p           16.6p             32.4p
Diluted Earnings per Share                                        13.1p           16.5p             32.2p
Earnings per Share Excluding Goodwill Amortisation                18.5p           21.3p             42.4p
Dividends per share                                                6.7p            6.1p             18.3p




                                        ACAL plc

                             Unaudited Balance Sheet
                            as at 30 September 2002

                                                             At 30 September            At 31 March
                                                          2002              2001            2002
                                                                                         (audited)
                                                         £'000             £'000           £'000
FIXED ASSETS
Intangible assets                                       47,681            43,616            42,383
Tangible assets                                         13,778            12,274            12,506
Investments                                              5,390             4,466             4,556
                                                        66,849            60,356            59,445
CURRENT ASSETS
Stocks                                                  28,098            35,362            30,323
Debtors                                                 50,504            55,619            53,470
Cash at bank and in hand                                10,641             7,303            10,639
                                                        89,243            98,284            94,432
CREDITORS:
Amounts falling due within one year                   (59,835)          (72,687)          (67,359)

NET CURRENT ASSETS                                      29,408            25,597            27,073


TOTAL ASSETS LESS
CURRENT LIABILITIES                                     96,257            85,953            86,518

CREDITORS:
Amounts falling due after more than one year          (23,533)          (15,669)          (15,369)

PROVISIONS FOR LIABILITIES
AND CHARGES                                            (3,517)           (4,102)           (3,915)

NET ASSETS                                              69,207            66,182            67,234

CAPITAL AND RESERVES
Called up share capital                                  1,308             1,302             1,304
Share premium account                                   37,009            36,638            36,786
Revaluation reserve                                        304               300               296
Profit and loss account and other reserves              30,586            27,942            28,848
                                                        69,207            66,182            67,234






                                  ACAL plc

                    Unaudited Summary Cash flow Statement for
                       Six Months ended 30 September 2002

                                                              Six Months ended 30        Year ended 
                                                                    September             31 March
                                                              2002             2001         2002
                                                                                          (audited)
                                                             £'000            £'000          £'000
OPERATING ACTIVITIES
Group operating profit                                        6,537           7,574            14,938
Depreciation and amortisation                                 2,810           2,712             5,482
(Increase)/decrease in working capital                      (1,166)         (6,015)             2,562

NET CASH INFLOW FROM OPERATING   ACTIVITIES                   8,181           4,271            22,982

Dividends from associates                                        78               -                 -
Net interest paid                                             (778)         (1,127)           (1,905)
Equity dividends paid                                       (3,181)         (2,862)           (4,450)
Tax paid                                                    (3,193)         (2,975)           (6,353)
Net expenditure on tangible fixed assets and                (2,787)         (3,735)           (5,204)
investments
Net cash flow from acquisitions and disposals               (6,405)               -               195

NET CASH (OUTFLOW)/INFLOW BEFORE FINANCING                  (8,085)         (6,428)             5,265

Increase/(decrease) in debt and finance leases                7,045             125             (302)
Issue of share capital                                          227              85               235

NET (DECREASE)/INCREASE IN CASH                               (813)         (6,218)             5,198


Reconciliation of net cash flow to movement in net (debt)

NET (DECREASE)/INCREASE IN CASH                               (813)         (6,218)             5,198


Cash (inflow)/outflow from (increase)/decrease in
debt and lease financing                                    (7,045)           (125)               302
Debt acquired with subsidiary                                 (257)               -                 -
New finance leases                                                -               -              (84)
Translation differences                                       (123)            (37)                64

MOVEMENT IN NET (DEBT)                                      (8,238)         (6,380)             5,480

Net (debt) at beginning of the period                      (12,878)        (18,358)          (18,358)

Net (debt) at end of the period                            (21,116)        (24,738)          (12,878)




            Unaudited Statement of Total Recognised Gains and Losses
                       For Six Months Ended 30 September

                                                        Six Months ended 30          Year ended 31
                                                             September                   March
                                                       2002             2001             2002
                                                                                      (audited)
                                                      £'000           £'000             £'000

Profit attributable to shareholders                   3,455            4,311              8,426
Net gain/(loss) on currency translation                  43            (215)              (353)
Dilution of investment in associated undertakings         -                -               (44)


Total recognised gains and losses for the             3,498            4,096              8,029
financial period



NOTES:



 1. The financial information set out above does not constitute the Company's
    statutory accounts for the year ended 31 March 2002, but is derived from
    those accounts.  Statutory accounts for 2002 have been delivered to the
    Registrar of Companies.  The auditors have reported on those accounts; their
    report was unqualified and did not contain a statement under section 237 (2)
    or (3) of the Companies Act 1985.



 2. These interim results have been prepared in accordance with the accounting
    policies normally adopted by the Company and are consistent with those
    adopted at 31 March 2002.



 3. Turnover of the Group's Cisco distribution business, which was sold in
    October 2002, and the UK industrial instrumentation business, which was sold
    in October 2001 have been shown under "Activities sold".



 4. The interim dividend is payable on 24 January 2003 to shareholders on the
    register on 13 December 2002.



 5. Earnings per share for the half year to 30 September 2002 have been
    calculated on the profit attributable to ordinary shareholders of £3,455,000
    using the weighted average number of ordinary shares in issue during the
    period.



 6. The company's interim report is being sent to shareholders by post.  Copies
    will also be available from:



Acal plc, 2 Chancellor Court, Occam Road, Surrey Research Park, Guildford,
Surrey, GU2 7AH



          The interim results will not be advertised in any newspaper











Ends



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