Interim Results

Flomerics Group PLC
30 July 2001


30 July 2001


                             FLOMERICS GROUP PLC


                        'Continued excellent progress'

                      For the 6 months ended 30 June 2001


Flomerics Group PLC, supplier of analysis software to the telecommunications,
semiconductor, and computer industries, and other sectors of the electronics
industries, announces its results for the six months to 30 June 2001.


Key Points

*    Turnover increased 32% to £6.45m (2000: £4.89m). (26% growth at constant 
     exchange rates).

*    Profit Before Tax increased to £110,000 (2000: £41,000).

*    Turnover from the recently introduced FLO/EMC and Microstripes increased by

     81% with good progress in the US and the new branch office in Japan.

*    Continuing good performance from established products FLOTHERM and FLOVENT,

     both show turnover increase of 23%.

*    Release of FLO/STRESS in April 2001 - a new product enabling users to carry

     out stress calculations, reducing the problem of equipment failure.


Commenting on the results, David Mann, the Chairman, said:

'I am delighted to announce this excellent progress through difficult market
conditions. I think the results demonstrate the soundness of the view,
expressed in the last Annual Report, that Flomerics' software is important to
companies carrying out development of new products, even when those companies
are making cut backs elsewhere.

 Clearly the Company is not invulnerable to any further deterioration of the
global economic situation. The board therefore continues to monitor the
situation carefully, but currently it continues to see good prospects for
trading in the remainder of this financial year and beyond.'



For further information please contact:


Flomerics:

David Mann, Chairman                                   020 8941 8810

David Tatchell, Chief Executive
Chris Ogle, Finance Director

Teather & Greenwood:
Richard Thompson                                       020 7426 9073
Adam Lawson (analyst)                                  020 7426 9592

Buchanan Communications:

Tim Thompson / Nicola Cronk                            020 7466 5000



Chairman's Statement


I am delighted to announce that Flomerics has continued to make excellent
progress in the six months ended 30 June 2001, through difficult market
conditions. Turnover for the period was £6,455,000 compared to £4,890,000 in
the same period last year  - an increase of 32%. This includes a benefit from
the stronger US dollar, but at constant exchange rates turnover still
increased by 26% compared to 33% in the same period last year.

It is pleasing to note in the present economic climate, that the US operation
achieved turnover growth of 28% over the same period last year, accounting for
54% of the Group's revenue in the period.

As most shareholders will be aware, due to the pattern of renewals, the
Company receives the majority of its income in the second half. Last year was
the first year as a quoted company that a profit was made in the first half.
This has been repeated this year, with an increase in profit before tax from £
41,000 to £110,000.


The Products

The Company has benefited from progress across the range of its products, as
demonstrated by the following growth rates, all at constant exchange rates.

Turnover from Flotherm, the Company's most established product, grew by 23%
over the same period last year. In the financial year ended 31 December 2000
FLOTHERM turnover grew by 32%. I believe that it has been a significant
achievement to maintain this momentum against a background of major cutbacks
in the electronics sector.

Encouragingly, turnover from Flovent was up by 23% compared with the same
period last year. It grew by 10% in the financial year ended 31 December 2000.

Turnover from the more recently introduced electromagnetic products, FLO/EMC
and Microstripes, increased by 81% compared to the first half of 2000. FLO/EMC
and Microstripes are both making good progress in the US, and the new branch
office in Japan, devoted to selling Microstripes, has made an excellent start
to the year.

We are continuing to broaden the Company's range of products and services and
in April released FLO/STRESS, a thermomechanical stress module, enabling users
of FLOTHERM to predict the stresses in electronics components which can lead
to equipment failure. The Company's continued commitment is to being the
leading provider of simulation tools for the physical design of electronics.



New Offices

Following the opening of our office in China last year, and offices in
Singapore and Tokyo in January, we have now opened a sales and support office
in Stockholm to service the important Nordic territories. The Company tries to
have direct local representation wherever possible, and the benefit of these
new offices is already being felt.



Prospects

I congratulate the management and staff of the Company wholeheartedly on their
achievements in the first half of the year. I think the results demonstrate
the soundness of the view, expressed in the last Annual Report, that
Flomerics' software is important to companies carrying out development of new
products, even when those companies are making cut backs elsewhere.

Clearly the Company is not invulnerable to any further deterioration of the
global economic situation.  The Board therefore continues to monitor the
situation carefully, but currently it continues to see good prospects for
trading in the remainder of this financial year and beyond.



David Mann
Chairman
30 July 2001


GROUP PROFIT AND LOSS ACCOUNT


                                                  30-Jun-01  30-Jun-00 31-Dec-00
                                                (Unaudited)(Unaudited)(Audited)
                                                      £'000      £'000    £'000

Turnover                                              6,455      4,890   11,763

Cost of sales                                         (299)      (246)    (550)

Gross Profit                                          6,156      4,644   11,213

Administrative expenses                             (6,028)    (4,549)  (9,937)

Amortisation of goodwill                               (41)       (41)     (82)

Operating Profit                                         87         54    1,194

Other interest receivable and other income               35          7       43

Interest payable and similar charges                   (12)       (20)     (55)

Profit on ordinary activities before taxation           110         41    1,182

Tax on profit on ordinary activities                   (29)       (16)    (323)

Profit on ordinary activities after taxation             81         25      859

Dividends                                                 -          -    (146)

Transferred to reserves                                  81         25      713

Earnings per share                                      .6p        .2p     6.0p

Diluted earnings per share                              .6p        .2p     6.0p



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                                  30-Jun-01  30-Jun-00 31-Dec-00
                                               (Unaudited) (Unaudited) (Audited)
                                                      £'000      £'000    £'000

Profit for the period                                    81         25      859

Unrealised gain on translation of foreign
currency investments                                    126         57       93

Total Recognised Gains                                  207         82      952



GROUP BALANCE SHEET                            30-Jun-01   30-Jun-00  31-Dec-00
                                             (Unaudited) (Unaudited)  (Audited)
                                                   £'000       £'000      £'000
Fixed Assets
Intangible assets                                    663         745        704
Tangible assets                                    1,267       1,076      1,027
Investments                                            -          19         19
                                                   1,930       1,840      1,750

Current Assets
Debtors                                            4,667       3,285      5,626
Cash at bank and in hand                           1,721         537      1,136
                                                   6,388       3,822      6,762

Creditors: amounts falling due within one        (3,554)     (2,981)    (3,941)
year

Net Current Assets                                 2,834         841      2,821

Total Assets less Current Liabilities              4,764       2,681      4,571

Creditors: amounts falling due after one           (122)       (155)      (136)
year


Provisions for Liabilities and Charges              (30)           -       (30)

Net Assets                                         4,612       2,526      4,405

Capital and Reserves
Called up share capital                              146          28         29
Share premium account                              1,616         579      1,733
Other reserves                                       759         759        759
Profit and loss account                            2,091       1,160      1,884

Equity Shareholders' Funds                         4,612       2,526      4,405



GROUP CASHFLOW STATEMENT                          30-Jun-01  30-Jun-00 31-Dec-00
                                               (Unaudited) (Unaudited) (Audited)
                                                      £'000      £'000    £'000
Operating Activities
Operating profit                                         87         54    1,194
Depreciation and amortisation charges                   337        262      597
(Increase)/ decrease in debtors                         959        633  (1,766)
Increase/ (decrease) in creditors                       139      (200)      898
Net cash inflow from operating activities             1,522        749      923

Net cashflow from returns on investments and
servicing of finance                                    23        (13)     (12)
Taxation                                              (192)       (63)    (308)
Net cashflow from capital expenditure and
financial investment                                  (517)      (482)    (727)

Equity dividend paid                                  (146)      (110)    (110)
Net cashflow before financing                           690         81    (234)

Net cashflow from financing                            (93)         46    1,093

Increase in cash in the period                          597        127      859


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN
NET FUNDS
                                                  30-Jun-01  30-Jun-00 31-Dec-00
                                               (Unaudited) (Unaudited) (Audited)
                                                      £'000      £'000    £'000

Increase in cash in the period                          597        127      859

Cash outflow from decrease in debt and lease
financing                                                93         74      350

Change in net funds resulting from cash flows           690        201    1,209

New finance leases                                        -       (64)    (232)

Translation differences                                 126         57       93

Movement in net funds in the period                     816        194    1,070

Net Funds (debt) at beginning of period                 689      (381)    (381)

Net Funds (debt) at end of period                     1,505      (187)      689



NOTES


1.       ACCOUNTING  POLICIES

The financial information contained in this Interim Report does not constitute
statutory accounts. The interim results, which have not been audited, have
been prepared using accounting policies consistent with those used in the
preparation of the Annual Report and Accounts for the year ended 31 December
2000. Those accounts have been filed with the Registrar of Companies and
received an unqualified audit report.


2.       TAXATION

Taxation for the six months to 30 June 2001 is based on the effective rate of
taxation that is estimated to apply to the year ending 31 December 2001.


3.       EARNINGS PER SHARE

The earnings per share figures have been calculated using the number of shares
in issue following the four-for-one bonus issue that was made in April of this
year. The total number of shares now in issue is 14,646,580.

Basic earnings per share have been calculated by dividing the profit on
ordinary activities after taxation in the period by the weighted average
number of shares in issue in the period of 14,646,580 (six months to 30 June
2000: 13,853,080). The diluted earnings per share calculation has been based
on a fair value of 151p per share (30 June 2000: 145p). The diluted weighted
average number of shares is 14,716,601 (30 June 2000: 13,941,790).



4.       SEGMENTAL INFORMATION

The group's turnover for each geographic area of operation is:


                               30 June 01      30 June 00        31 December 00
                                    £'000           £'000                 £'000
United States of America            3,627           2,601                 6,555
Europe and the Far East             2,828           2,289                 5,208
                                    6,455           4,890                11,763



Some turnover is now invoiced in the Far East since the establishment of the
new offices in Singapore and Japan. There remains a significant part of turnover
relating to this region that is invoiced from the UK.

Segmental information on profit before tax and net assets is disclosed in the
Annual Report.


5.       SHARE PLACING

In July 2000, in order to support the working capital requirements of the
Company, a share placing of 5% of the Company's share capital was undertaken.
This raised £1.2 million.


6.       BONUS ISSUE

On April 24 2001 the Company made a four-for-one bonus issue, resulting in an
issue of 11,717,264 shares and an increase in the called up share capital of £
117,173. This has been implemented by capitalising this amount from the share
premium account.


7.       INTERIM REPORT

Copies of the Interim Report will be sent to shareholders on Friday, 3 August
2001 and will be available at the Company's registered office at 81 Bridge
Road, Hampton Court, Surrey, KT8 9HH.