Preliminary Results

Acal PLC
5 June 2000


      Audited Preliminary Results for the Year Ended 31st March 2000

The key points are:

Group turnover up 44% to £245.4m (1999 : £170.8m)

Group profit before taxation, amortisation of goodwill and exceptionals
increased 44% to £14.4m (1999 : £10.0m)

Earnings per share (before amortisation of goodwill and exceptional items) up
42% at 40.3p (1999 : 28.3p)

Total dividends per share for the year up 12% at 13.8p (1999 : 12.3p)

Sedgemoor successfully integrated with Acal

Very buoyant demand for components being experienced across Europe


Commenting on the outlook, John Curry, the Chairman of Acal plc said:

'Book  to  bill ratios are at their highest for a long time and year  on  year
quarterly order growth rates are also at high levels and still increasing.   I
am  confident  of the Group's ability to take advantage of the strong  economy
and exploit the many opportunities available.'


Contacts:

John Curry, Chairman            - 01276 474406

Jim Virdee, Finance Director    - 01276 474406

Fergus Wylie, Cubitt Consulting - 020 7367 5100



Notes to Editors:

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,
Personal Computer Spare Parts 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.

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.

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



                             Chairman's Statement


Results

I am pleased to report growth in sales, operating profit and earnings per
share before goodwill amortisation and exceptional items.  The economic
climate improved in the second half and we continued to achieve growth and
satisfactorily assimilated the Sedgemoor acquisition, a major step in the
evolution of Acal.

Sales have increased from £170.8 million to £245.4 million - up 44%.  The
acquisition of the Sedgemoor Group provided 31% while organic growth provided
17% (before a 4% negative currency translation impact).

Group profit before taxation, amortisation of goodwill and exceptionals
increased from £10.0 million to £14.4 million, a 44% increase.  Taxation is
lower this year at 29.1% (35.9%) but because of the exceptional income last
year, and the reorganisation costs and goodwill amortisation relating to
Sedgemoor this year, headline earnings per share fell from 38.5p to 33.1p. 
However, excluding exceptionals and goodwill amortisation, earnings per share
grew from 28.3p to 40.3p, and your Board therefore propose a final dividend of
9.2p (8.2p) making a total for the year of 13.8p per share (12.3p) an increase
of 12.2%.


Summary Review

The major task this year has been the assimilation and in some instances the
integration of the Sedgemoor Group following its acquisition.  This has gone
well, and we are now organised to develop the business in the Acal style, and
expand some of the businesses into Continental Europe.

There have been strong trading conditions in Electronic Components and Network
Products.  This demand increased in the last quarter of the financial year,
with order rates growing faster than sales.  We have had particular success
with newer technologies including fibre channel products.

Within the Information Technology division the network product growth has been
unaffected by delays due to Y2K and is continuing to accelerate, unlike our
Document Management products business.

Following the loss of some in-warranty business in our PC Spare Parts activity
reported at the half year, a lot of work has been done with major suppliers
and large service organisations to replace the lost business.  I am pleased to
say there are clear signs of this investment beginning to bear fruit.
However, we need to be realistic that the full benefit to the bottom line is
still probably twelve months away.

Following the acquisition of Sedgemoor and the minority interest of EAF, the
net debt rose at the half-year to £27.7 million, this had been reduced by the
year end to £23.9 million, a creditable performance.


Appreciation

Following the acquisition of Sedgemoor, the Board's thanks to old and new
employees of the Group are particularly appropriate.  The extra workload, and
uncertainty that are part and parcel of a major acquisition require an
abundance of goodwill and effort from all our staff - and I am pleased to say
our employees and management have fully lived up to our expectations.



Prospects

Over the last few years, the levels of uncertainty have only allowed us to be
cautiously optimistic when expressing a view of the coming year.  However,
this year is different.   Book to bill ratios are at their highest for a long
time and year on year quarterly order growth rates are also at high levels and
still increasing.  These demand levels are also being achieved by others in
the industry, and there is a general buoyancy which seems reasonably certain
to continue through this year.

I am confident of the Group's ability to take advantage of the strong economy
and exploit the many opportunities available.


John Curry
5th June 2000
    
                                   
                               Operations Review

Acal is a leading value-added distributor providing specialist design-in,
sales and marketing services for international suppliers.  Dynamic strategies
have been established for each segment of the business whilst maintaining the
core philosophy of 'demand creation', rather than the more common, lower
margin 'demand fulfilment'.


Electronic Components

The year was in many ways one of two very different halves with trading
conditions improving considerably as the second half progressed.  This was
particularly noticeable in Continental Europe where current conditions are
probably the most favourable that have been experienced in the electronics
industry in the past five years.  Major improvements in demand in Germany, the
Netherlands, Belgium and France in the last few months of the year all played
a significant part in the achievement of the overall results.

Many customers, particularly the larger international and pan-European groups
are effecting their vendor reduction programmes which have benefited Acal as a
major, professional, well resourced supplier.  These have involved developing
a variety of logistics services both for OEM's and CEM's (the growing sector
of Contract Electronic Manufacturers).  The growth has been across all
component groups with a particular emphasis in the telecoms, datacoms and
networking markets, embedded industrial systems and the newer generations of
consumer electronic products such as set top boxes.

The Sedgemoor subsidiaries which operate almost totally in the UK have settled
well into the Acal Group and the structural changes which involved integrating
ACT and Gothic Crellon and moving Amega into the Acal Electronics' building
were both achieved successfully thanks to the efforts and support of all
concerned.  Amega, the niche semiconductor business, and Radiatron, one of the
two Group distributors of electromechanical components deserve special mention
for achieving results better than planned.

The number of operating facilities continues to grow to serve the expanding
demand and support requirements - with new offices, test facility and
warehouse for Acal Electronics in the UK; a new warehouse and logistic centre
for Acal Nederland; a new larger Munich facility for Acal GmbH; an extension
of the Acal Belgium office; a new small Irish sales centre in Dublin and
another in Finland.


Information Technology Products

Apart from the acquisition of Sedgemoor, the largest single impact in revenue
terms was the growth of networking products and services.  This predominantly
relates to the sales of Cisco equipment in the Netherlands and this is now
being supplemented by specialised security products for this market plus
Acal's pre-eminent European position in the fast growing SAN (Storage Area
Network) market with Fibre Channel Products.  Investment in this market sector
has resulted in Acal being invited to join the Fibre Channel Association for
Europe - the only distributor to be represented on the Board of the Technology
Committee of this prestigious and influential body.  Acal is also privileged
to host the European Fibre Channel Mobile Technology Centre which was
effectively launched at Cebit 2000 show in February.  The SAN market achieved
worldwide sales in 1999 of approximately $5bn with close to 20% coming from
Europe and a forecast of six times growth by 2003.

Headway, Acal's Document Management business, disappointed this year, held
back by delays to customer programmes caused largely by the fears of Y2K
issues.  Although business grew with some of the key products from Kodak,
Fujitsu and Hewlett Packard, a significant shortfall was in high resolution
displays.  Major opportunities for growth in the new year have already been
identified which at such an early date is encouraging.  Towards the year end
Headway in the UK extended its e-commerce facilities with the launch of a web
shop.  This web shop will be rolled out to all parts of the Headway
organisation.


P C Spare Parts

As reported at the interim stage, EAF had a successful start to the year, but
the curtailment of our in-warranty business affected the results for the
second half.  Despite this we achieved a very satisfactory profit return on
sales of 7%.  As indicated, this setback caused us to accelerate the
initiative to broaden the business and support other leading manufacturers and
more major international multi-vendor service organisations.  Our efforts have
been rewarded with new relationships developing with Dell and Unisys in the
UK, IBM and Hewlett Packard in the Netherlands and QMS in Germany.  We are
confident of the huge opportunities that exist, have invested in new operating
facilities and look forward to renewing the pattern of growth and expansion in
due course.


Industrial Controls

The Air Conditioning and Refrigeration components business developed
increasing sales and profitability in the second half of the year resulting in
an overall growth in revenue of 10% year-on-year and with the sale in January
of the small Fluid Control business in France, the Industrial Group is now
more focussed on AC&R which represents around 75% of this division.


Tony Laughton
5th June 2000

                                       
                               Financial Review
                                       
                                       
The year to 31 March 2000 has seen sterling on average around 7% stronger
against continental European currencies than in the previous year.  With the
acquisition of Sedgemoor, a greater proportion of Acal's business is
denominated in sterling and therefore the effect on overall Group results is
relatively less pronounced than before.

The table below compares the Group's underlying performance with last year
isolating the effects of the acquisition of Sedgemoor and of exchange rates.



                                             Effect of 
          Year       Underlying  Effect of   exchange  Year
£ million ended       increase   acquisition   rates   ended 31
          31 March                                     March 00
          99
                                                       
Sales         170.8        29.2       53.3        -7.9    245.4

 % change                 +17%       +31%         -4%     +44%
         
                                                                
Profit*        10.0         1.7        3.2        -0.5     14.4

 % change                 +17%       +32%         -5%     +44%
         

*Before taxation, exceptional items and amortisation of goodwill


                                       
Overall gross margins were similar at 24.5% (1999:  24.6%).  The table below
compares the sales and gross margins achieved by the Group's divisions during
the year to 31 March 2000 with the previous year.


£ million                       Year ended 31 March
                           2000                     1999
                      Sales        GM%        Sales        GM%
Electronic            
Components            117.9      28.2%         58.4      29.3%
IT Products            69.1      17.5%         54.8      16.3%
PC Spare Parts         38.0      23.8%         39.8      27.0%
Industrial             
Controls               20.4      28.4%         17.8      29.1%

                      245.4      24.5%        170.8      24.6%


During the year net operating expenses before exceptional items and goodwill
amortisation increased from £32.1 million to £44.6 million.  Of the increase
of £12.5 million, the acquisition of Sedgemoor accounted for £11.8 million and
there was a benefit from the effect of exchange rates of £1.3 million.  Thus
the underlying increase was £2.0 million, representing 6%.


The Group's share of the profit of associated undertakings increased from £0.2
million to £0.4 million principally as a result of the strong performance by
Westech, our electronic components associate in the Far East.

Exceptional items in the year were profits of £1.0 million on the sale of
investments and costs of £0.7 million relating to the integration of Sedgemoor
with Acal.

This year the Group's effective tax rate (based on profit before tax and
amortisation of goodwill) was 29.1% as compared with 35.9% last year.  The
improvement was partly as a result of a higher proportion of profits being
generated in the United Kingdom and partly as a result of one-off benefits of
the reversal of timing differences and relief for tax losses brought forward.

We have a strong balance sheet and finished the year with net debt of £23.9
million as compared with net cash of £9.0 million at the end of the previous
year.  The principal items which contributed to the change were the net
expenditure of £30.4 million of cash on the acquisition of Sedgemoor and of
£2.6 million on the purchase of the 30% minority interest in EAF during the
year.  Shareholders' funds at 31 March 2000 were £54.1 million (1999:  £28.4
million) having benefited from the issue of new shares as part consideration
for the acquisition of Sedgemoor and the minority interest in EAF, as well as
retained profits for the year.

Interest cost of £1.6 million during the year was covered 10 times by profit
before interest, tax and goodwill amortisation, and 8.7 times by profit before
interest and tax.

The Group's operating companies continue to manage their working capital
satisfactorily, and the results of their efforts are in line with our model.
Buoyant market conditions have in some cases led to lengthening lead times
from suppliers, and this has resulted in the holding of some extra stock.

Dividends on ordinary shares for the year will absorb £3.6 million (1999:
£2.9 million);  these are covered 2.9 times (1999:  2.7 times) before
amortisation of goodwill, and 2.3 times (1999:  2.7 times) after amortisation
of goodwill.  It should be noted that the 5.1 million shares issued in part
consideration for the acquisition of Sedgemoor did not rank for the interim
dividend last year.


Jim Virdee
5th June 2000
                                   ACAL plc
                                       
                        Audited Preliminary Results for
                        the Year ended 31st March 2000

                                          Year ended 31 March
                                 2000        2000       2000       1999
                                 £'000       £'000     £'000       £'000
                              Continuing  Acquisition  Total             
                                                                         
TURNOVER                        192,084       53,276   245,360   170,824
                                                                         
Operating Profit before                                                  
Goodwill Amortisation

Subsidiary Undertakings          10,843        3,989    14,832    11,114
                                                                         
Group share of Associated                                                
Undertakings                        436           --       436       246

Total Operating Profit before Goodwill                                   
Amortisation

Before exceptional items         11,279        4,715    15,994    10,110
                                                                         
Exceptional items                    --         (726)     (726)    1,250

                                 11,279        3,989    15,268    11,360
                                                                         
Amortisation of Goodwill           (156)      (1,922)   (2,078)       (1)

TOTAL OPERATING PROFIT           11,123        2,067    13,190    11,359

                                                                         
Net profit on disposal of                                                
investments and tangible                                         
fixed assets                      1,014           --    1,014      2,052

Loss on termination of                                           
operations                           --           --       --       (391)

Net interest payable -                                            
subsidiaries                       (114)      (1,478)   (1,592)      (45)

Net interest payable -                                           
associated undertakings             (32)          --       (32)      (24)

Profit before taxation                                                   

Profit before tax, goodwill      11,133        3,237    14,370    10,041
and exceptional items

Exceptional items                 1,014         (726)      288     2,911

Amortisation of Goodwill           (156)      (1,922)   (2,078)       (1)

PROFIT ON ORDINARY                                                       
ACTIVITIES BEFORE TAXATION       11,991          589    12,580    12,951

Taxation on profit on                                                    
ordinary activities:

United Kingdom                                          (2,384)   (2,733)

Overseas                                                (1,756)   (1,819)

Associated Undertakings                                   (129)      (96)

                                                        (4,269)   (4,648)
PROFIT ON ORDINARY                                                       
ACTIVITIES AFTER TAXATION                                8,311     8,303

                                                                         
Minority Interests - Equity                                (79)     (540)

Attributable profit:                                              

Attributable profit before                              
goodwill amortisation                                   10,310     7,764
 
Amortisation of Goodwill                                (2,078)       (1)

PROFIT ATTRIBUTABLE TO                                                   
ORDINARY  SHAREHOLDERS                                   8,232     7,763

                                                                         
DIVIDENDS ON ORDINARY                                            
SHARES                                                  (3,558)   (2,904)

                                                                         
RETAINED PROFIT FOR THE                                 
YEAR                                                     4,674     4,859

                                                                         
PROFIT AND LOSS ACCOUNT AT 1 APRIL 1999                 29,356    24,004

(Loss)/Gain on Currency                                          
Translation                                             (1,311)      493

                                                                         
PROFIT AND LOSS ACCOUNT AT 31 MARCH 2000                32,719    29,356

                                                                         
EARNINGS PER SHARE                                       33.1 p     38.5 p

FULLY DILUTED EARNINGS PER SHARE                         33.0 p     38.5 p

EARNINGS PER SHARE BEFORE GOODWILL AMORTISATION AND                      
EXCEPTIONAL ITEMS                                        40.3 p     28.3 p


                                   ACAL plc
                                       
                             Audited Balance Sheet
                             as at 31st March 2000

                                         At 31st March
                                        2000         1999
                                        £'000        £'000
                                                  
FIXED ASSETS                                      

Intangible assets                     47,388          574

Tangible assets                        9,342        5,885

Investments                            2,957        2,945

                                      59,687        9,404

CURRENT ASSETS                                    

Stocks                                26,284       15,544

Debtors                               52,021       34,872

Cash at bank and in hand               8,461       14,128

                                      86,766       64,544

CREDITORS:                                        

Amounts falling due within one year  (64,503)     (42,328)

                                                  

NET CURRENT ASSETS                    22,263       22,216

                                                  

TOTAL ASSETS LESS                                 
CURRENT LIABILITIES                   81,950       31,620

                                                  

CREDITORS:                                        

Amounts falling due after more than               
one year                             (22,926)        (904)

                                                  

PROVISIONS FOR LIABILITIES                        
AND CHARGES                           (4,942)        (402)

                                                  

NET ASSETS                            54,082       30,314
                                     
                                                  

CAPITAL AND RESERVES                              

Called up share capital                1,289        1,007

Share premium account                 35,586       13,539

Revaluation reserve                      290          323

Profit and loss account and other                 
reserves                              16,917       13,566

                                                  

Shareholders' Funds                   54,082       28,435

                                                  

Minority interests (all equity)          --         1,879

                                                  

                                      54,082       30,314
                                     



                                       
                                       
                                   ACAL plc
                                       
                    Audited Summary Cash Flow Statement for
                        the Year ended 31st March 2000
                                       

                                   Year ended 31st March
                                       2000       1999
                                      £'000      £'000
                                                
NET CASH INFLOW FROM OPERATING                  
ACTIVITIES                          13,958      12,438

                                                

Net interest paid                   (1,592)        (45)

Tax paid                            (6,061)     (4,370)
                                                
Net expenditure on tangible fixed               
assets and investments              (4,194)     (2,187)

Net cash flow from acquisitions                 
and disposals                      (31,885)      3,270

Equity dividends paid               (3,253)     (2,296)
                                                

NET CASH (OUTFLOW)/INFLOW BEFORE                        
FINANCING                          (33,027)      6,810

                                                

Increase/(decrease) in debt and                 
finance leases                      22,019        (263)

Issue of share capital                 138          33

                                                

NET (DECREASE)/INCREASE IN CASH    (10,870)      6,580
                                   
                                                
                                             
   Reconciliation of net cash flow to movement in net
                     (debt )/ cash

NET (INCREASE)/DECREASE IN CASH    (10,870)      6,580
                                                
Cash (inflow)/outflow from                          
(increase)/decrease in debt and                 
lease financing                    (22,019)        263

Lease financing acquired with          (89)         --
subsidiary

Translation differences                 67         (55)

                                                

MOVEMENT IN NET DEBT/CASH          (32,911)      6,788

                                                

Net cash at beginning of the                    
period                               8,973       2,185

                                                

Net (debt) / cash at end of the                 
period                             (23,938)      8,973
                                           





Notes:

The financial information set out above does not constitute the company's
statutory accounts for the years ended 31st March 2000 or 1999, but is derived
from those accounts.  Statutory accounts for 1999 have been delivered to the
Registrar of Companies whereas those for 2000 will be delivered following the
company's Annual General Meeting.  The auditors have reported on those
accounts; their reports were unqualified and did not contain a statement under
section 237 (2) or (3) of the Companies Act 1985.

The final dividend is payable on 2nd August 2000 to shareholders on the
register on
16th  June 2000.

Earnings per 5p share for the year to 31st March 2000 have been calculated on
the profit attributable to ordinary shareholders of £8,232,000 using the
weighted average number of ordinary shares in issue during the period.

The Annual Report and Accounts will be mailed to shareholders on or before
14th June 2000.  Copies will also be available from Acal plc, 39 Guildford
Road, Lightwater, Surrey GU18 5SA.  The results will not be advertised in any
newspaper.