Interim Results

Lawrence PLC
19 January 2001


ANNOUNCEMENT OF RESULTS FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2000

CHAIRMAN'S STATEMENT

I am pleased to report that the Group continued to make further good progress
in the six months to 30th September 2000.  Profit before exceptional item,
amortisation of goodwill and minority interest, increased by 14 per cent to
£2.06 million (1999 £1.81 million)  Earnings per share, before exceptional
item and amortisation of goodwill rose by 13 per cent to 18.7 pence.  Turnover
increased by 17 per cent to £15.4 million.  The Board has declared an interim
dividend of 2.80 pence (net) per share  (1999 2.5 pence (net))  which will be
paid on 6th April 2001 to shareholders on the register on 2nd February 2001. 
Our investment in Amberley Group plc, which arose as part of the sale of our
Performance Minerals business in 1993, has been written down as an exceptional
item following its exceptional losses last year and which caused Amberley
Group's share price to fall below our book cost.  Last October, some major
institutional shareholders imposed significant board changes at Amberley Group
which has now stated that it intends to return value to shareholders through
disposals and we are optimistic that a profit on our investment should be
generated in due course.  We believe that the company still comprises a number
of quality businesses which should allow the board to deliver its strategy.

AGIL: This division continued to consolidate its position as one of the
world's foremost manufacturers and distributors of speciality animal feed
additives. This fast growing international market offers really exciting
growth prospects and Agil is particularly well placed through its extensive
research and development to capitalise on global market opportunities. Sales
volumes remained strong with increases in most of our markets around the
world.  The strength of Sterling restricted sales prices but these pressures
were partly offset through lower import prices of raw materials. Agil feed
additives, which are drug free, offer customers an effective means of
controlling disease without the risk of antibiotic resistance or residues.
Prospects for our additives have been further enhanced by current media
coverage of Salmonella scares in pigs and concerns over the safety of
'organic' and 'free-range' products. Agil has the range of feed additives to
help in all these areas. Our approach of using certain organic acids with plant
sugars has been demonstrated to offer a real alternative to drug based growth
enhancers by promoting a microbial driven pH shift in the hindgut to slow the
growth rate of Gram negative enteropathogens such as Salmonella, E. coli and
Campylobacter.  Agil is currently evaluating several new products for use in
our traditional poultry, pig and fish feeding markets. Early results are
encouraging  and this new range could be launched later in the year.  Agil has
maintained its technical presence and within the past few months has presented
specialist papers at poultry congresses in Spain, Turkey, Morocco and South
East Asia.  It is inevitable that with rising concern among consumers about
food safety, the EEC will have to control the importation of chicken meat from
countries where antibiotic growth promoters are still heavily used.  Our
supermarkets will insist upon their overseas suppliers conforming to the
drug-free practices now being adopted in Europe.  Agil will be a significant
beneficiary of these changes when they are introduced as its products are free
of antibiotics and are fully approved throughout the EEC. 

ECO GROUP:  ECO Animal Health has made good progress this year with the
granting of more drug registrations.  It is still waiting to receive over 200
more for which dossiers have already been submitted, some over two years ago.
Each year the registration authorities around the world seem to make the
granting of licences more difficult and we would now expect our AIVLOSIN
patented antibiotic to receive its first licences only early next year.  On
the other hand, we have received ECOMECTIN pour-on registrations earlier than
anticipated and with the strengthening of our registration department by
recruiting more staff, we hope to make faster progress with these important
applications.  Sales of ECO products have shown good growth internationally
and the company is on target to achieve the very significant worldwide sales
that we had hoped for when the company was formed some seven years ago. The
future for ECO Animal Health looks very bright indeed.

INTERPET:  The UK pet trade has seen some major changes, with considerable
consolidation of retailers and wholesalers, the failure of many dot com pet
product suppliers and the influx of cheap electrical products from the Far
East.  All these changes benefit Interpet, whose strong brands provide
quality, reliable and well-established pet, aquatic and pond products.  On the
home market a good start to the year with record sales in May and June was
tempered by the poor weather in the summer.  We attended Interzoo, the Worlds'
largest Pet Trade Exhibition held in Germany with an impressive stand
displaying the many new products being launched.  In September we launched our
new range of water features, ponds and newly packaged Blagdon products at the
UK Garden Trade Show where our stand was one of the busiest.  The relocation
of our distribution centre from Dorking to Bridgwater is now complete and this
will improve both our efficiency and service to our demanding customers. 
Interpet Publishing produced some excellent new titles and is fast becoming
known for providing quality information and photography with exceptional
presentation.  Many foreign rights and co-edition sales are now contributing
towards the profitability of that business.  With ongoing attention to gross
margins, the best use of our China office to buy innovative, quality
controlled products, together with the reorganisations within the business,
they will all contribute to some encouraging results going forward.

INTERPET LLC:  Aquarium Products, based in Baltimore in the USA, made a good
start to the year with significant sales and marketing effort to raise further
our brand awareness.  Several products have now been repackaged and the brand
image modernised and this coupled with our new products have all been well
received both by our new distributors across all the States and by our many
customers.  We are encouraged by the progress made in our first year in
America and expect to achieve continuing growth in the world's largest market
for pet products.

BLACKFAST CHEMICALS:  Blackfast Chemicals performed well and the introduction
of our new aluminium blacking process for the engineering industry has been
very well received. Although the smallest division of our Group, it offers
excellent growth potential, especially outside the United Kingdom.  

SHAREHOLDERS:  On 17th November 2000 we announced that we were in discussions
which might lead to a management buy out of the company.  This situation has
been brought about by the apparent lack of interest by major investors in
companies of our size.  Many of our shareholders have been locked into their
investment for some years and it would seem appropriate at this time to offer
a fair exit to them.  Any progress on these negotiations will be reported to
you in due course.

OUTLOOK:  The second half has started well.  We look forward with confidence
and expect to generate continued growth from our businesses.   Regardless of
the outcome of the current buy out negotiations we will continue to strive to
release value for our shareholders.

Peter A Lawrence

CONSOLIDATED PROFIT AND LOSS ACCOUNT                                          
      
                                                 
                           Six months        Six months              Year
                                ended             ended             ended
                             30.09.00          30.09.99          31.03.00
                          (unaudited)       (unaudited)         (audited)
                                 £000              £000              £000
                                                 
TURNOVER                                                 
Continuing operations          15,283            13,232            26,569
                                                
Cost of sales                  -9,293            -8,059           -16,164
                                                 
GROSS PROFIT                    5,990             5,173            10,405
Administrative expenses        -3,925            -3,382            -6,711
                                                 
OPERATING PROFIT                2,065             1,791             3,694
Share of profit (losses) of                                                 
associated undertakings            60                60                40
and provisions                                                 
                                2,125             1,851             3,734
Interest and income                                                 
from investments                   73               122                31
                                2,198             1,973             3,765
EXCEPTIONAL ITEMS                                                 
loss on sale of fixed asset         -               -94              -100
                                                 
Provision for diminution in                                                 
value of investments             -375                 -                 -
                                                 
Interest payable                 -165              -139              -194
                                                 
PROFIT ON ORDINARY              1,658             1,740             3,471
ACTIVITIES BEFORE                                                 
TAXATION                                                 
Taxation                         -464              -510            -1,108
                                                 
PROFIT AFTER TAX                1,194             1,230             2,363
Minority interest                -255              -128              -238
                                                 
PROFIT FOR PERIOD                 939             1,102             2,125
Dividends                        -199              -158              -816
                                                 
RETAINED PROFIT                   740               944             1,309
                                                 
EARNINGS PER SHARE PRIOR                                                 
TO GOODWILL AMORTISATION        18.7p             16.6p             31.7p
AND EXCEPTIONAL ITEMS                                                 
                                                 
BASIC EARNINGS PER SHARE        13.1p             15.6p             29.9p
                                                 
FULLY DILUTED EARNINGS                                                 
PER SHARE                       13.0p             15.3p             29.4p


CONSOLIDATED BALANCE SHEET
                                   
                          Six months         Six months        Year ended
                      ended 30.09.00     ended 30.09.99          31.03.00
                         (unaudited)        (unaudited)         (audited)
                               £000                £000              £000
                                   
                                   
FIXED ASSETS                                   
Intangible Assets             2,775               2,148             2,495
Tangible Assets               1,594               1,432             1,512
Investments                   2,303               2,410             2,636
                              6,672               5,990             6,643
                                   
CURRENT ASSETS                                   
Stock                         8,107               6,676             7,249
Debtors                       9,044               7,932             9,565
Cash at Bank and in Hand        235                 178               310
                             17,386              14,786            17,124
                                   
CREDITORS                                   
Amounts falling due
within one year              -9,989              -7,628           -10,544
                                   
NET CURRENT ASSETS            7,397               7,158             6,580
                                   
                                   
TOTAL ASSETS LESS            14,069              13,148            13,223
CURRENT LIABILITIES                                   
                                  
CREDITORS                                   
Amounts falling due
after more than one year       -992              -1,557            -1,153
Provision for liabilities
and charges                                   
                                   
NET ASSETS                   13,077              11,591            12,070
                                   
CAPITAL AND RESERVES                                   
Called up share capital         716                 710               716
Share Premium                 3,246               3,196             3,246
Capital Redemption Reserve      106                 106               106
Profit and Loss Account       9,198               8,131             8,446
Minority Interest              -189                -552              -444
                                   
SHAREHOLDERS' FUNDS          13,077              11,591            12,070


CONSOLIDATED CASH FLOW STATEMENT                                          
              
                               Note    Six months ended        Year ended     
                                               30.09.00          31.03.00
                                             (unaudited)       (unaudited)
                                                   £000              £000     
        
NET CASH (OUTFLOW)
FROM OPERATING ACTIVITIES       (1)               2,395             3,034     
        
                                          
RETURNS ON INVESTMENT
AND SERVICING OF FINANCE                                          
Interest Received                                    73                57     
Interest Paid                                      (165)             (250)    
Dividends Received                                    -                31     
        
NET CASH OUTFLOW FROM
RETURNS ON INVESTMENT AND                                          
SERVICING OF FINANCE                                (92)             (162)    
         
TAXATION                                           (294)           (1,493)    
         
                                          
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT                                
Purchase of Intangible Fixed Assets                (430)             (818)    
Purchase of Tangible Fixed Assets                  (215)             (375)    
Sales of Investments                                  -              (177)    
Sale of Tangible Fixed Assets                        10               418    
NET CASH (OUTFLOW) FROM CAPITAL EXPENDITURE                                   
AND FINANCIAL INVESTMENT                           (635)             (952)    
         
                                          
ACQUISITIONS                                          
Purchase of business                                  -            (1,171)    
Net cash balances acquired
with subsidiary undertaking                           -                 -     
NET CASH OUTFLOW FROM ACQUISITIONS                    -            (1,171)    
         
                                          
EQUITY DIVIDENDS PAID                              (816)             (730)    
         
FINANCING                                          
Issue of shares                                       -                98     
Increase/(repayment) of borrowing                  (168)              761     
        
NET CASH INFLOW (OUTFLOW) FROM FINANCING           (168)              859     
        
                                          
INCREASE/(DECREASE) IN CASH             (2)         391              (617)    
         
                                          
Notes                                          
(1) RECONCILIATION OF OPERATING PROFIT TO NET                                 
    CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES                           
              
Operating Profit                                  2,065             3,694     
Depreciation charge                                 122               242     
Amortisation charge                                 151               194
Profit on disposal of fixed asset investments         -                (3)    
(Increase)/Decrease in stocks.                     (859)             (597)    
Decrease in debtors                                 522            (1,172)    
Increase in creditors                               395               676
                                                  2,396             3,034     
        
(2) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN                            
    NET DEBT                                          

(Decrease)/increase in cash in the year             391              (617)    
Cash outflow from financing (inflow)                168              (760)    
Change in net debt resulting from cashflow          559            (1,377)    
Effect of foreign exchange changes                   13               (50)
                                                    572            (1,427)    
         
Net Debt at 1st April 2000                                          
Net Debt at 30th September 2000                  (3,806)           (2,379)    
                                                 (3,234)           (3,806)    
         
                                          
(3) RECONCILIATION ANALYSIS OF CHANGES IN NET DEBT                            
             
                                    At 1.4.00  Cash flow       At 30.9.99
                                         £000       £000             £000

Cash at Bank and in Hand                  310        (75)             235
Overdrafts                             (2,528)       479           (2,049)
                                       (2,218)       404           (1,814)
Debt                                   (1,588)       168           (1,420)
                                       (3,806)       572           (3,234)
                                          
          

NOTES TO THE INTERIM REPORT


The summarised results of the half year to 30th September 2000, which are
unaudited, have been prepared in accordance with the accounting policies in
the Accounts for the period ended 31st March 2000.

The results for the first half of the 2000/01 financial year have not been
audited.  The summary of results for the year ended 31st March 2000 does not
constitute full financial statements within the meaning of Section 240 of the
Companies Act 1985.  The full financial statements for that year have been
reported on by the company's auditors and delivered to the Registrar of
Companies.  The audit report was unqualified and did not contain a statement
under Section 237 (2) or Section 237 (3) of the Companies Act 1985.

The directors have declared an interim dividend of 2.8p per share (1999:
2.50p), payable on 6th April 2001 to shareholders on the register on 2nd
February 2001. The calculation of earnings per ordinary share is based on the
profit for the period and 7,158,329 ordinary shares (1999:  7,070,258) being
the weighted average number of shares in issue during the half year.  The
weighted average number of shares in issue during the year ended 31st March
2000 was 7,117,166.

The interim report was issued to the Stock Exchange and the press on 19th
January 2001 and will be posted to shareholders.  Further copies of the
Interim Report are available at the Company's Registered Office.