Final Results

Mercury Recycling Group PLC
22 May 2002



                          MERCURY RECYCLING GROUP PLC

                      ANNOUNCEMENT OF PRELIMINARY RESULTS

                       FOR THE PERIOD TO 31 DECEMBER 2001



CHAIRMAN'S STATEMENT



I am pleased to present the report and accounts for the period ended 31 December
2001.



In May 2001, Argon Group Plc acquired Mercury Recycling Ltd ('MRL') and changed
its name to Mercury Recycling Group Plc. New directors were appointed and the
tangible benefits from this acquisition were the cash resources which could now
be deployed to expanding MRL's recycling business.



The results include the expenditure of managing the Plc as well as many
non-recurring items from the period before flotation on AIM. There is also a
goodwill amortisation of £110,000 and your Board's decision is that goodwill
arising on the acquisition of MRL should be written off over 20 years. When the
non recurring items and the goodwill are added back, overall the recycling
business had a satisfactory year.



MRL, the group's only trading subsidiary, has continued its improving
performance. As the MRL figures show, sales increased again. This resulted in
that company making a small operating profit for the year to 31 December 2001
against an operating loss in the previous year. So, we are clearly making
progress which we expect to accelerate in the years to come although we will
continue to incur the additional costs of managing the Plc.



I referred above to the development of MRL. Although the sales have been
satisfactory, with ever-improving trends, the industry is awaiting the
implementation of the Directive on Waste Electrical and Electronic Equipment
('WEEE'), which will have a profound effect on the business. In a recent speech,
Michael Meacher, the Minister for the Environment, was optimistic about
implementation of the WEEE Directive in the near future.



Recycling remains the core of our business activity, and even without the
Directive, our list of clients is growing every month. MRL is well positioned
now, with an ever-growing reputation, to take advantage of improved
environmental responsibility, both in the public and private sector. Industry
and Government both recognise the need to stop harmful mercury compounds from
fluorescent tubes and other mercury-bearing waste, adding to the contamination
of landfill sites.



The Group is also considering expansion by appropriate mergers or acquisitions.
We are already investigating such possibilities, and will continue to search for
suitable partners which can help to expand the business.



The Rt Hon The Lord Barnett JP PC

Chairman






GROUP PROFIT AND LOSS ACCOUNT

for the period ended 31 December 2001


                                                                                              2001
                                                                                       £000          £000
Turnover

Continuing operations                                                                     -
Acquisitions                                                                            405

Total turnover                                                                                        405

Cost of sales                                                                                        (33)

Gross profit                                                                                          372

Administrative expenses                                                                             (463)
Other operating income                                                                                  3
Restructuring costs (non recurring)                                                                  (34)
Abortive acquisition costs (non recurring)                                                           (29)
Goodwill amortisation                                                                               (110)

Operating loss
Continuing operations                                                                 (166)
Acquisitions                                                                           (95)

Group operating loss                                                                                (261)

Exceptional items
Profit on disposal of investment                                                                       20
Loss on ordinary activities before interest                                                         (241)

Interest receivable                                                                                    10
Interest payable                                                                                     (16)

Loss on ordinary activities before taxation                                                         (247)

Taxation                                                                                                -

Loss on ordinary activities after taxation retained for the period                                  (247)

Basic earnings per share                                                                         (1.695p)

Diluted earnings per share                                                                       (1.693p)



There are no recognised gains or losses other than those passing through the
profit and loss account.




GROUP BALANCE SHEET

for the period ended 31 December 2001
                                                                                                       2001
                                                                                                       £000
Fixed assets
Intangible assets                                                                                     3,187
Tangible assets                                                                                         301
                                                                                                      3,488

Current assets
Stocks                                                                                                    4
Debtors                                                                                                 130
Cash at bank and in hand                                                                                392
                                                                                                        526

Creditors: amounts falling due within one year                                                        (230)

Net current assets                                                                                      296

Total assets less current liabilities                                                                 3,784

Creditors: amounts falling due after more than one year                                               (101)

Accruals and deferred income                                                                            (6)
                                                                                                      3,677

Capital and reserves
Called up share capital                                                                               2,512
Share premium account                                                                                 1,523
Merger reserve                                                                                        (111)
Profit and loss account                                                                               (247)
Equity shareholders' funds                                                                            3,677






GROUP CASH FLOW STATEMENT

for the year ended 31 December 2001
                                                                                             2001
                                                                                       £000          £000

Net cash outflow from operating activities                                                          (137)

Returns on investments and servicing of finance
Interest received                                                                        10
Interest paid                                                                          (16)
                                                                                                      (6)

Taxation                                                                                                -

Capital expenditure and financial investment
Payments to acquire tangible assets                                                     (9)
Receipts from sale of tangible assets                                                   100
                                                                                                       91
Acquisitions and disposals
Net cash acquired with subsidiary undertaking                                                       (240)

Net cash inflow before financing                                                                    (292)

Financing
Repayment of long term loans                                                          (140)
Repayment of finance lease and hire purchase contract                                  (10)
Issue of share capital (net of expenses)                                                834
                                                                                                      684
Increase in cash                                                                                      392



NOTE:



The financial information set out above does not constitute the Company's
financial statements for the year ended 31 December 2001.  The financial
statements for 2001 have been audited and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting on 8 July 2002.  The
auditors have reported on the 2001 statements; their report was unqualified and
did not contain a statement under section 237(2) or (3) of the Companies Act
1985.



Copies of the 2001 Report and Accounts will be mailed to shareholders shortly.
Further copies will be available for collection from the Company's offices at
Unit G, Canalside North, John Gilbert Way, Trafford Park, Manchester  M17 1DP.



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