Interim Results

Flomerics Group PLC
30 July 2003



IMMEDIATE RELEASE                                                   30 July 2003

                              FLOMERICS GROUP PLC

                                INTERIM RESULTS
                      For the 6 months ended 30 June 2003


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 2003.

Key Points
    
•    Turnover fell 18% to £4.88 million (2002: £5.97 million). (14% at
     constant exchange rates).

•    Loss before amortisation of goodwill of £103,000 (2002: profit of
     £188,000).

•    Strong cash balance of £2 million. (2002 : £1.1m)

•    A major new release of FLOTHERM in June 2003 and the release of the
     first merged product of FLO/EMC with FLOTHERM - already benefiting the 
     sales of both products.

•    Increased turnover from FLO/EMC although sales of other products
     continued to be difficult.

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

"When the economic conditions improve, we are well placed for growth and there
are some signs that the worst is over. We expect the remainder of 2003 to be
challenging, but with the release of the major new merged product of FLO/EMC and
FLOTHERM, measures taken to reduce costs and some scheduled large renewals, the
directors currently see good prospects for the Company to end the year with
reasonable results."


For further information please contact:

Flomerics:
David Tatchell, Chief Executive                       020 8941 8810
Chris Ogle, Finance Director

Buchanan Communications:
Tim Thompson / Nicola Cronk                           020 7466 5000



Interim Results 2003

Chairman's Statement

Results

In common with the electronics industry as a whole, Flomerics continued to
experience difficult trading in the six months ended 30 June 2003 . By tight
management of costs the Company incurred only a small loss in the period and
maintained strong cash balances.

In spite of lower turnover overall, customer renewals were good and exceeded our
budget; all of the major accounts that were expected to renew during the period
did so and there was some expansion of use within existing accounts. Recurring
revenues accounted for 74% of sales (2002:73%). However, sales to new customers
continued to be difficult and the levels were disappointing compared to previous
years.

Turnover from FLO/EMC increased compared to the same period last year.  Whilst
sales were slower to close than hoped for, the reception from our customers has
been extremely positive and we expect to benefit significantly from the release
of the new version of the product.

Total turnover at £4.88 million (2002: £5.97 million) was down 18% (14% at
constant rates of exchange). Administration costs of £4.85 million (2002: £5.54
million) were down by 12%.  The reduction in costs was achieved by overall
vigilance but also by some reduction in staff during the period.

The result was a loss before amortisation of goodwill in the period of £103,000
(2002: £188,000 profit). With some large licence renewals occurring in the
second half of the year, it is not abnormal for Flomerics to make a loss at the
interim stage, although in the last three years we have been pleased to achieve
a small profit.

Cash remains strong and at the end of June was £2.0 million (30 June 2002: £1.1
million).

Product Releases

I am very pleased to announce that a very significant milestone was reached in
June with a major new release of FLOTHERM, and the release of the first merged
product of FLO/EMC with FLOTHERM.

Kimberley Communications Consultants Limited was acquired as a means of entering
the EMC market, but we knew that the full potential benefit would be realised
only when the FLO/EMC product could be combined with FLOTHERM, giving customers
the benefit of the FLOTHERM user interface and allowing users of both products
to share models. The linking of thermal and EMC, now available in the new
release is unique, and has proved of real interest to existing and potential
customers. We believe that it will benefit the sales of both products, and
indeed is already doing so.

In addition, the new release of FLOTHERM represents a major upgrade in its own
right, and provides many valuable benefits to users, including automatic design
optimisation and a multi-level nested grid, which reduces calculation times by
up to a factor of ten. This release has also been well received by the market.

Prospects

The fundamental drivers of Flomerics' business remain unchanged: because of the
relentless growth in the power of today's microprocessors, there is a continuing
and increasing need for analysis software to address both thermal and EMC
problems in electronics. Nevertheless, since mid-2001, sales of the Company's
products have been disappointing; extreme financial pressures on organisations
operating in the electronics sector around the world have caused them to defer
expenditure on many items, inevitably affecting our business.

When the economic conditions improve, we are well placed for growth and there
are some signs that the worst is over. We expect the remainder of 2003 to be
challenging, but with the release of the major new product, measures taken to
reduce costs and some scheduled large renewals, the directors currently see good
prospects for the Company to end the year with reasonable results.


CONSOLIDATED PROFIT AND LOSS
ACCOUNT
Interim results for the six monthsto
30 June 2003
                                         30-Jun-03      30-Jun-02    31-Dec-02
                                       (Unaudited)    (Unaudited)    (Audited)
                                             £'000          £'000        £'000


Turnover                                     4,881          5,966       11,711

Cost of sales                                 (152)          (226)        (355)

Gross Profit                                 4,729          5,740       11,356

Administrative expenses                     (4,855)        (5,539)     (10,570)

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

Operating (Loss)/Profit                       (167)           160          704

Other interest receivable and other             46              8           26
income

Interest payable and similar                   (23)           (21)         (95)
charges

(Loss)/Profit on Ordinary Activities          (144)           147          635
Before Taxation

Tax on profit on ordinary                        -            (37)        (160)
activities

(Loss)/Profit on Ordinary Activities          (144)           110          475
After Taxation

Dividends                                        -              -         (146)

Transferred to Reserves                       (144)           110          329

(Loss)/earnings per share                    (0.98p)         0.75p        3.25p

Diluted (loss)/earnings per share            (0.98p)         0.75p        3.23p



STATEMENT OF TOTAL RECOGNISED GAINS
AND LOSSES
                                         30-Jun-03      30-Jun-02    31-Dec-02
                                       (Unaudited)    (Unaudited)    (Audited)
                                             £'000          £'000        £'000

(Loss)/Profit for the Period                  (144)           110          475

Unrealised gain / (loss) on
translation of foreign currency
investments                                     17            (19)         (96)
                                              
Total Recognised (Loss)/Gains                 (127)            91          379



CONSOLIDATED BALANCE SHEET               30-Jun-03      30-Jun-02    31-Dec-02
At 30 June 2003                        (Unaudited)    (Unaudited)    (Audited)
                                             £'000          £'000        £'000
Fixed Assets
Intangible assets                              499            581          540
Tangible assets                              1,783          1,969        1,908
                                             2,282          2,550        2,448

Current Assets
Debtors                                      3,934          5,182        4,216
Cash at bank and in hand                     1,975          1,124        2,159
                                             5,909          6,306        6,375

Creditors: amounts falling due within       (3,072)        (3,659)      (3,546)
one year

Net Current Assets                           2,837          2,647        2,829

Total Assets Less Current                    5,119          5,197        5,277
Liabilities

Creditors: amounts falling due after          (543)          (603)        (574)
one year

Provisions for Liabilities and                   -            (33)           -
Charges

Net Assets                                   4,576          4,561        4,703

Capital and Reserves
Called up share capital                        146            146          146
Share premium account                        1,602          1,602        1,602
Merger reserve                                 759            759          759
Profit and loss account                      2,069          2,054        2,196

Equity Shareholders' Funds                   4,576          4,561        4,703



CONSOLIDATED CASH FLOW STATEMENT         30-Jun-03      30-Jun-02    31-Dec-02
for the six months to 30 June 2003     (Unaudited)    (Unaudited)    (Audited)
                                             £'000          £'000        £'000
Operating Activities
Operating (loss)/profit                       (167)           160          704
Depreciation and amortisation                  281            371          635
charges
Profit on disposal of fixed assets               -              -          (17)
Exchange differences                            17            (19)         (80)
Decrease / (increase) in debtors               282            (73)         893
(Decrease) / increase in creditors            (261)            34         (121)
Net Cash Inflow From Operating                 152            473        2,014
Activities

Net cashflow from returns on
investments and servicing
of finance                                      23            (13)         (69)
Taxation                                       (38)             -         (234)
Net cashflow from capital expenditure
and
financial investment                          (115)          (153)        (314)
Equity Dividend paid                          (146)          (146)        (146)
Net Cashflow Before Financing                 (124)           161        1,251

Net Cashflow From Financing                    (60)           (85)        (140)

(Decrease) / increase in Cash in the          (184)            76        1,111
Period


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                         30-Jun-03      30-Jun-02    31-Dec-02
                                       (Unaudited)    (Unaudited)    (Audited)
                                             £'000          £'000        £'000
(Decrease) / increase in Cash in the          (184)            76        1,111
Period

Cash outflow from decrease in debt              60             85          140
and lease financing

Movement in Net Funds in the Period           (124)           161        1,251

Net Funds at Beginning of Period             1,486            235          235

Net Funds at End of Period                   1,362            396        1,486



NOTES TO THE INTERIM REPORT

     
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 2002. Those accounts have been filed with the Registrar 
     of Companies and received an unqualified audit report.
     
2.   TAXATION

     During the six months to 30 June 2003 the company incurred a loss and no
     provision for taxation has been made.
     
3.   (LOSS)/EARNINGS PER SHARE
     
     Basic (loss)/earnings per share have been calculated by dividing the 
     (loss)/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 2002: 14,646,580). The diluted (loss)/earnings per share 
     calculation has been based on a fair value of 54p per share (30 June 2002: 
     73p). The diluted weighted average number of shares is 14,676,338 (30 June 
     2002: 14,694,665).
     
4.   SEGMENTAL INFORMATION

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

                             30 June 03        30 June 02       31 December 02
                                  £'000             £'000                £'000

United States of America          2,428             3,057                5,908
Europe and Asia Pacific           2,453             2,909                5,803
                                -------           -------              -------
                                  4,881             5,966               11,711


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

     
5.   ANALYSIS OF NET FUNDS

                             30 June 03        30 June 02       31 December 02
                                  £'000             £'000                £'000
Cash in hand and at bank          1,975             1,124                2,159
Debt due after one year            (543)             (597)                (574)
Debt due within one year            (56)              (50)                 (56)
Finance leases                      (14)              (81)                 (43)
                                 ------            ------              -------
Total                             1,362               396                1,486


Debt represents a mortgage that was taken out on a property acquired in 2001.



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