Final Results

ELECO PLC
4 October 1999
                            

         Preliminary results for the year ending
                      30 June 1999
                            
                            
                ELECO RECOVERY CONTINUES
      SUBSTANTIAL INCREASE IN PROFITS AND DIVIDENDS
        MAJOR REDUCTION IN BORROWINGS AND GEARING
                            
                            
                       Highlights
      
      
    *    Profit on ordinary activities before tax of
         £1,503,000 (1998 - £9,000)
      
    *    Earnings per share 3.50p (1998 - loss 0.10p)
      
    *    Recommended final dividend of 0.50p per share,
         making a total of 0.80p (1998 - 0.25p)
      
    *    Gearing cut to 8 per cent (1998 - 46 per cent)
      
    *    Chairman, John Ketteley, comments:
      
      'Over  the  past  two years Eleco  has  achieved  a
      strong  recovery in its profitability and  finances
      and  has  developed a clear corporate strategy.   I
      am  pleased  to say that the Group has started  the
      year  in  line with expectations and that Eleco  is
      now   in   an  excellent  position  to  take   full
      advantage of growth opportunities as they arise'.
      
      
      Enquiries to:
      
      John Ketteley, Executive Chairman            01992 440 311
      Eleco plc
      
      David Dannhauser, Finance Director           01992 440 311
      Eleco plc
      
      David Millham/Tarquin Edwards                0171 256 5756
      Millham Communications



                  Chairman's Statement


I  am  pleased to be able to report a further significant
improvement in Eleco's trading performance and  financial
position  this  year.   During  the  past  year,  Eleco's
ongoing  businesses have again increased both  sales  and
operating  profits, the financial position has  continued
to  strengthen with bank borrowings considerably reduced,
and the proposed total dividend for the year is more than
trebled.

Results
Turnover of our businesses ongoing from last year was  up
£1.9  million  for the year ended 30 June 1999  to  £26.9
million  (1998: £25.0 million), a 7.6 per cent  increase.
Group  turnover  in the previous year was £27.9  million,
including  £2.9 million in respect of Davis International
which was sold during that year.

Total   operating   profit  of  our  ongoing   operations
increased by 19.1 per cent. to £1,680,000 from £1,411,000
for  the  year  ended 30 June 1998.  The  improvement  in
profit  on  ordinary activities before tax was even  more
marked  with  an  increase  to £1,503,000  compared  with
£9,000  for the year ended 30 June 1998 and a loss before
tax  of £1,319,000 for 1997.  Earnings per share for  the
year  ended  30  June 1999 amounted  to  3.5p  per  share
compared  with losses in the two previous years  of  0.1p
per  share for the year ended 30 June 1998 and  3.8p  per
share in 1997.

Group   borrowings   and  gearing  were   again   reduced
considerably in the year under review.  At 30 June  1999,
net  bank  borrowings  and leasing  obligations  totalled
£502,000  compared with £2,555,000 at 30  June  1998  and
£4,955,000  in  1997.  As a result, net interest  charges
halved to £192,000 in the year under review from £384,000
in  the  previous  year  and were covered  8.8  times  by
operating  profits  before  exceptional  items.    As   a
consequence of the reduction in Group borrowings over the
past  two  years,  gearing  at  30  June  1999  stood  at
approximately 8 per cent. compared with 46 per  cent.  in
1998 and 82 per cent. in 1997.

Dividend
In  light  of the results and the progress that is  being
made,  the Board have proposed a final dividend  for  the
year  of  0.50p per share (1998: 0.25p per share) payable
on 14 December 1999 to shareholders on the Register as at
26  November  1999.   The  proposed  final  dividend,  if
approved  by  shareholders,  together  with  the  interim
dividend  of 0.30p per share would result in the  payment
of total dividends for the year of 0.80p per share (1998:
0.25p  per  share)  and  would be covered  4.4  times  by
earnings.

Operating Review
Building Systems Division
Turnover  of  the Building Systems Division in  the  year
under  review increased by 7.8% to £24.7m (1998:  £22.9m)
and  operating  profits increased by 45.5  per  cent.  to
£1.90 million (1998: £1.3 million).

Roofing Systems
SpeedDeck Building Systems made good progress during  the
year.    Initiatives  are  being  progressed  which   are
targeted  at  broadening  SpeedDeck's  current  range  of
products and strengthening its competitive position.
     
Panel Products
Stramit, despite meeting with intense competition in  its
markets,  nevertheless succeeded  in  making  an  overall
contribution  to operating profit.  During  the  year  it
exited from its strawboard panel product range.
     
Precast Concrete Products
Bell  &  Webster again performed well, increasing factory
output  by 51 per cent. year on year.  Good progress  was
made  in further developing opportunities for its  'flat-
pack'  rooms  particularly  for  the  hotel  and  student
accommodation markets. The management's confidence in the
future  for the product range is reflected in  the  plans
now  being implemented for a significant expansion of the
works at Grantham, which will provide additional capacity
to  meet  the demand anticipated for the next few  years.
The  new plant is planned to be fully operational by late
Spring next year.

Nail-Plate Systems
Gang-Nail Systems had a good year.  Its new Windows-based
truss  and  roof software programmes, 'GN Roof'  and  'GN
Truss',  will  be launched later this year to  complement
'GN Manager', our Windows-based management suite which is
also  under  development.  We are  confident  that  these
programmes,   which   are  being   developed   in   close
collaboration with customer steering groups, will achieve
our  objective of giving Gang-Nail Systems'  customers  a
leading edge in their market.
          
In addition to the new Windows based software programmes,
Gang-Nail  Systems  has  had  a  number  of  new   timber
engineering  products under development during  the  year
and in July, it successfully launched the first of these,
'Ecojoist', a steel web and timber engineered floor joist
system, designed specifically for the housing market.   I
am  pleased  to  say that 'Ecojoist' has been  very  well
received by a number of leading housebuilders, with  whom
it is now on trial.
          
Elecobauprodukte  in  Germany,  again   performed   well,
particularly  in the second half-year.  Although  margins
continued  to remain under pressure, sales were increased
by some 18% and the demand for connector plates generated
by our German colleagues brings added contribution to the
success of our manufacturing unit in the UK.
          
International  Truss Systems in South Africa  encountered
difficult  trading conditions for most of  the  financial
year.   However,  an  improvement in  conditions  in  the
latter  part  of the financial year, which has  continued
since,  enabled  it  to make a positive  contribution  to
Group operating profits.
          
Rail and Marine Division
Turnover  of  the Rail and Marine Division  increased  by
23.4  percent  to  £2.1  million  (1998:  £1.7  million),
including  a  full contribution from Tergor  Electronics,
which  was acquired in December 1997.  Operating  profits
increased by 16.8 per cent. to £0.38 million (1998: £0.32
million).

Abtus, the railtrack measurement equipment business,  and
Tergor,  the  marine  communications  business,  together
acquitted   themselves  well  in  a   difficult   trading
environment.   During  the  course  of  the  year,  Abtus
entered into an agreement with one of the world's leading
suppliers   to  the  railway  industry  to   market   and
distribute  Abtus' product range in North America,  which
should considerably enhance the future prospects for this
business.

Current Trading and Outlook
We  have identified a number of investment projects which
will   broaden  our  range  of  products,  increase   the
production capacity of existing products and involve  the
development of new and enhanced software programmes.  Our
much  strengthened financial position will enable  us  to
support  the  capital  investment  required  and   I   am
confident  that  these  projects,  when  completed,  will
considerably  strengthen our competitive  position  in  a
number of our markets.

Over the past two years Eleco has achieved a strong
recovery in its profitability and finances and has
developed a clear corporate strategy.  I am pleased to
say that the Group has started the year in line with
expectations and that Eleco is now in an excellent
position to take full advantage of growth opportunities
as they arise.



John Ketteley
Executive Chairman






Consolidated Profit and Loss Account  (Unaudited)

FOR THE YEAR ENDED 30 JUNE 1999

                                    1999      1999      1998       1998
                         Notes     £'000     £'000     £'000      £'000
Turnover

 Continuing operations            26,863              24,525
 Acquisitions                          -                 487
------------------------------------------------------------------------------
                                  26,863              25,012
 Discontinued operations               -               2,883
------------------------------------------------------------------------------
Total turnover               2              26,863               27,895

Cost of sales                              (17,880)             (19,082)
------------------------------------------------------------------------------
Gross profit                                 8,983                8,813
------------------------------------------------------------------------------
Operating profit/(loss)

 Continuing operations             1,680               1,322
 Acquisitions                          -                  89
------------------------------------------------------------------------------
                                   1,680               1,411
 Discontinued operations               -                 (87)
------------------------------------------------------------------------------
Total operating profit       2               1,680                1,324

Loss on sale and termination of
 discontinued operations                         -                 (390)

Profit/(loss) on disposal of 
tangible fixed assets and 
associated investments       3                  15                 (531)
------------------------------------------------------------------------------
Profit on ordinary activities 
 before interest                             1,695                  403

Interest receivable                    33                  18

Interest payable                     (225)               (412)
------------------------------------------------------------------------------
                                              (192)                (394)
------------------------------------------------------------------------------
Profit on ordinary activities 
 before taxation                             1,503                    9

Taxation                                      (149)                 (35)
------------------------------------------------------------------------------
Profit/(loss) on ordinary 
 activities after taxation                   1,354                  (26)
------------------------------------------------------------------------------
Dividends                    4                (309)                 (97)
------------------------------------------------------------------------------
Retained profit/(loss) for the year          1,045                 (123)
------------------------------------------------------------------------------
Earnings per 10p ordinary share 
 (net basis)                  5              3.5 p               (0.1)p

Diluted earnings/(loss) per
 10p ordinary share (net basis) 6            3.5 p               (0.1)p
------------------------------------------------------------------------------




Consolidated Balance Sheet  (Unaudited)

AT 30 JUNE 1999

                                                  1999    1998
                                                 £'000   £'000

Fixed assets

Intangible assets                                  127     134

Tangible assets                                  5,180   5,338

Investments                                          -       -
---------------------------------------------------------------
                                                 5,307   5,472
---------------------------------------------------------------

Current assets

Stocks                                           1,849   2,356

Debtors                                          6,097   6,007

Cash at bank and in hand                         1,121     636
---------------------------------------------------------------
                                                 9,067   8,999

Creditors: amounts falling due 
 within one year                                (6,871) (7,531)
---------------------------------------------------------------
Net current assets                               2,196   1,468
---------------------------------------------------------------
Total assets less current liabilities            7,503   6,940

Creditors: amounts falling due after 
 more than one year                               (938) (1,426)

Provisions for liabilities and charges               -      -
---------------------------------------------------------------
Net assets                                       6,565   5,514
---------------------------------------------------------------


Capital and reserves

Called up share capital                          3,863   3,863

Share premium account                            4,434   4,434

Merger reserve                                     367     367

Revaluation reserve                                  -       -

Profit and loss account                         (2,099) (3,150)
---------------------------------------------------------------
Equity shareholders' funds                       6,565   5,514
---------------------------------------------------------------



Consolidated Cash Flow Statement  (Unaudited)

FOR THE YEAR ENDED 30 JUNE 1999

                                                          1999       1998
                                               Notes     £'000      £'000

Operating activities

Net cash inflow from continuing operations               2,725      2,072

Net cash inflow/(outflow) from discontinued operations       -         95
--------------------------------------------------------------------------
Net cash inflow from operating activities       (i)      2,725      2,167
--------------------------------------------------------------------------
Returns on investment and servicing of finance

Interest received                                           33         18

Interest paid                                             (205)      (388)

Interest element of finance lease rentals                  (20)       (24)
--------------------------------------------------------------------------
Net cash outflow from returns on investment 
 and servicing of finance                                 (192)      (394)
--------------------------------------------------------------------------
Taxation

UK corporation tax paid                                    (52)       (10)

Overseas tax received/(paid)                                 -        (11)
--------------------------------------------------------------------------
Net cash outflow from taxation                             (52)       (21)
--------------------------------------------------------------------------
Capital expenditure and financial investment

Purchase of fixed assets                                (1,085)      (848)

Investments in associated undertakings                       -        (19)

Sale of tangible fixed assets                              887        105

Cash outflows on disposal of tangible fixed assets           -       (313)
--------------------------------------------------------------------------
Net cash outflow from capital expenditure and 
 financial investment                                     (198)    (1,075)
--------------------------------------------------------------------------
Acquisitions and disposals

Purchase of subsidiary net of cash acquired                  -       (337)

Sale and closure of subsidiary undertakings                  -      2,126
--------------------------------------------------------------------------
Net cash inflow from capital expenditure and 
 financial investment                                        -      1,789
--------------------------------------------------------------------------
Equity dividends paid                                      (97)         -
--------------------------------------------------------------------------
Net cash inflow before financing                         2,186      2,466
--------------------------------------------------------------------------
Financing

New bank loans                                           1,380        250

Repayment of principal under finance leases               (152)      (162)

Repayment of bank loans                                 (1,480)      (822)
--------------------------------------------------------------------------
Net cash outflow from financing             (ii)          (252)      (734)
--------------------------------------------------------------------------
Increase in cash in the period              (ii)         1,934      1,732
--------------------------------------------------------------------------


(i)  Reconciliation of operating profit/(loss) to net cash flow

                                             Continuing     Discontinued
                                           --------------  ---------------
                                            1999    1998     1999    1998
                                           £'000   £'000    £'000   £'000

Operating profit/(loss)                    1,680   1,411        -     (87)
Depreciation and amortisation                550     577        -      88
Profit on sale of tangible fixed assets       (4)    (22)       -      (2)
Working capital change                       499     106        -      96
--------------------------------------------------------------------------
Net cash inflow from operating activities  2,725   2,072        -      95
--------------------------------------------------------------------------


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

                                                           1999          1998
                                                          £'000         £'000

Increase in cash in the period                            1,934         1,732
Cash flow from decrease in debt and 
  lease financing                                           252           734
------------------------------------------------------------------------------
Change in net debt resulting from cash flows              2,186         2,466
Other non-cash items:
 New finance leases                                        (138)         (135)
 Finance leases eliminated on disposal                        -            87
 Effects of foreign exchange rates                            5           (18)
------------------------------------------------------------------------------
Movement in net debt in the period                        2,053         2,400
Opening Net debt                                         (2,555)       (4,955)
------------------------------------------------------------------------------
Closing Net debt                                           (502)       (2,555)
------------------------------------------------------------------------------




Notes:

1. The  financial  information  in this announcement  does  not  constitute
   statutory  accounts within the meaning of section 240 of  the  Companies   
   Act 1985.   Statutory accounts of the Company, on which the Auditors will  
   report,will be delivered to the Registrar of Companies and posted          
   shareholders at the end of October.  The comparative figures for the year  
   to 30 June 1998 have been  taken  from,  but do not constitute, the        
   Company's statutory  financial statements  for  that financial year.  Those
   financial statements  have  been reported  on  by  the Company's auditors  
   and delivered to  the  Registrar  of Companies.  The report of the auditors
   was unqualified and did not contain  a statement under s237(2) or (3) of   
   the Companies Act 1985.

2. Turnover and segmental analysis

   Group turnover and profits were attributable as follows

                                           External sales        Profit/(loss)
                                         -----------------    ----------------
                                            1999     1998       1999     1998
                                           £'000    £'000      £'000    £'000
 Continuing activities

 Building systems                         24,653   22,877      1,900    1,307
 Rail and marine                           2,123    1,721        375      321
 Property                                     87      414         22       45
 Corporate                                     -        -       (617)    (262)
------------------------------------------------------------------------------
 Total continuing                         26,863   25,012      1,680    1,411
------------------------------------------------------------------------------

 Discontinued activities

 Building systems                              -    2,882          -      (78)
 Other                                         -        1          -       (9)
------------------------------------------------------------------------------
 Total discontinued                            -    2,883          -      (87)
------------------------------------------------------------------------------
 Total continuing and discontinued        26,863   27,895      1,680    1,324
------------------------------------------------------------
 Exceptional profit/(loss)                                        15     (921)
------------------------------------------------------------------------------
 Profit before interest                                        1,695      403
------------------------------------------------------------------------------



3. Exceptional items before tax amounted to £15,000. A loss of £82,000  on
   the  sale of the freehold property previously occupied by Davis            
   International was  previously reported in the interim results. The second  
   half-year results principally  include  the  profit on the sale of  the    
   strawboard  production equipment sold by Stramit Industries.

4. An  interim dividend of £115,889 was declared at the interim  stage,  a
   final  dividend of £193,147 representing 0.50p per share will be paid  on  
   14 December 1999 to shareholders on the register at 26 November 1999.

5. The  calculation of earnings per share on the net basis is  based  upon
   the  earnings  attributable to members of the holding company  of          
   £1,354,000(1998:  loss  of  £26,000)  and  on 38,629,731  (1998:38,629,731)
   ordinary shares, being the weighted average number of ordinary shares in   
   issue  during the year.

6. The calculation of fully diluted earnings per share on the net basis is
   based  upon  the earnings attributable to members of the holding  company  
   of £1,354,000  (1998: loss of £26,000) and on a fully diluted  weighted    
   average of 38,929,403 (1998: 38,713,277) ordinary shares.

7  The information herein has been prepared on the basis of the accounting
   policies  set  out  in the financial statements for the year  ended  30    
   June 1998, except for the implementation of FRS11, FRS12, FRS13 and FRS14. 
   It  has not  been  necessary to restate comparative figures to reflect     
   these  changes of policy.

8. The  only  other  recognised gains not reported in the  Profit  &  Loss
   Account are exchange gains on translation of overseas assets of £6,000.

9. The directors approved the financial statements on 1 October 1999.


The  Annual  General  Meeting  of Eleco plc will  be  held  at  Brewers  Hall,
Aldermanbury Square, London EC2V 7HR at 10:00 on 19 November 1999.