Final Results

Mercury Recycling Group PLC
24 May 2004

                          MERCURY RECYCLING GROUP PLC

            PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003



Mercury Recycling Group PLC, the UK's largest lamp and fluorescent tube
recycling company, announces preliminary results for the year ended 31 December
2003.

In his Statement to shareholders, the Chairman, Lord Barnett said:

'I am pleased to report on an encouraging year, which has witnessed many
positive developments for the Group.


Key Points

  • Imminent EU legislation will strictly control the disposal of electrical
    and electronic equipment (including fluorescent tubes) and greatly reduce
    the number of Landfill sites accepting hazardous waste. This should
    significantly boost Mercury's customer base and accelerate sales.
  • Sales were up 23% to £947,000 (2002: £770,000) including one month's
    contribution from Simister Engineering Limited acquired in November 2003.
  • Simister now successfully integrated, providing an additional specialist
    recycling plant in the South of England.
  • Operating profit before amortisation of £71,000 (2002: Loss of £23,000).
  • Pretax loss of £97,000 (2002: £195,000 loss) after charging amortisation
    of £186,000.
  • Capitalisation of loans totalling £116,500 to former director and JC Dwek,
    non-executive director.
  • Balance Sheet cash at year end of £232,000.


Commenting on current trading and prospects, Lord Barnett added:
'Sales for the first three months of 2004, which now include Simister, continue
to show a further substantial increase, partly in anticipation of the new
legislative changes. We are continuing to hold discussions with a number of
other companies which could provide valuable areas for further expansion. We
look forward to another successful year with growing confidence.

Full text of the Chairman's Statement and accounts follows


Enquiries:
Simon Lebor
Chief Executive
Mercury Recycling Group plc
Tel: [phone]

Ken Rees/Paul Vann
Binns Winningtons
0117 3179477



                              CHAIRMAN'S STATEMENT

I am pleased to report on an encouraging year, which has witnessed many positive
developments for your Group.  First, the European Union Directive on Waste
Electrical and Electronic Equipment (WEEE), is expected to be implemented in
August this year.  Second, the number of landfill sites accepting hazardous
waste is due to be reduced from 250 to approximately only 11, following the
introduction of the new Landfill Directive in July 2004.  Only a few of these 11
sites will be permitted to accept mercury bearing waste products, which is a
component of the great majority of lamps and tubes. This will severely limit the
options for disposal, and should enlarge the customer base as recycling then
becomes the preferred choice.  These two factors alone, leaving aside for the
moment the organic growth,  will provide a strong stimulus and increased
momentum to our business, the impact from which will gradually accelerate our
sales.

Sales at £947,000 show an increase of 23% over 2002 reflecting a substantial
growth of new clients from both the public and private sectors and includes only
one month's contribution from Simister Engineering Limited (Simister) of
£35,000, which was acquired at the end of November 2003. Significant progress
has been made in the gross profit for the year which is up from £686,000 last
year to £842,000. The Group operating loss of £97,000 (2002 Loss £196,000) was
after the annual goodwill amortisation charge in accordance with Financial
Reporting Standard 10 of £168,000 and this is the first time that the Group has
been able to report a profit before amortisation.  The Balance Sheet shows a
healthy cash balance of  £232,000 compared with £249,000 in 2002, after having
paid the cash consideration for the acquisition of Simister of £175,000 with the
balance of the consideration having been satisfied by the issue of shares
amounting to £725,000.

The sales for the first three months of 2004, which now include Simister,
continue to show a further substantial increase partly in anticipation of the
new legislative changes referred to above. The Simister acquisition has its own
specialised recycling plant in the South of England, increasing the geographical
catchment area and simultaneously providing increased capacity.  The Simister
plant operates a slightly different technology of recycling which is
complimentary and affords us an additional technique.

During the year, two loans totalling £116,500 were capitalised by the issue of
additional shares to K Doyle, a former Director, and J C Dwek, a current
Director, at the middle market price, and shows the confidence of these
shareholders in the future of the Group.

The Group is now the largest lamp recycler in the UK, and moving forward, we are
continuing to hold discussions with a number of other companies which could
provide valuable areas for further expansion.

Finally, I would again like to thank all members of the Group, including our new
colleagues from Simister, for their hard work and commitment.  This has ensured
that the two companies have merged successfully, and are ready to take advantage
of the new opportunities to which I have referred.

We look forward to another successful year with growing confidence.

Yours sincerely,


The Rt Hon The Lord Barnett JP PC
Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                                                2003               2002
                                                                                                £000               £000
Turnover
            Continuing operations                                                                912                770
            Acquisitions                                                                          35                  -

Total turnover                                                                                   947                770

Cost of sales                                                                                  (105)               (84)

Gross profit                                                                                     842                686

Administrative expenses                                                                        (939)              (888)
Other operating income                                                                             -                  6

Operating profit/(loss) before amortisation and exceptional items

                                                                                                  71               (23)
Abortive acquisition costs (non-recurring)                                                         -                (8)
Goodwill amortisation                                                                          (168)              (165)

Operating loss
            Continuing operations                                                              (100)              (196)
            Acquisitions                                                                           3                  -

Group operating loss                                                                            (97)              (196)


Interest receivable                                                                                6                  7
Interest payable                                                                                 (6)                (6)

Loss on ordinary activities before taxation                                                     (97)              (195)

Taxation                                                                                           -                  -

Loss on ordinary activities after taxation retained for the year

                                                                                                (97)              (195)

Loss per share - Basic                                                                       (0.35)p            (0.78)p


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




GROUP BALANCE SHEET
                                                                                               2003                2002
                                                                                              £'000               £'000

Fixed assets
Intangible assets                                                                             3,616               3,022
Tangible assets                                                                                 553                 264

                                                                                              4,169               3,286

Current assets
Debtors                                                                                         232                 156
Cash at bank and in hand                                                                        232                 249

                                                                                                464                 405

Creditors: amounts falling due within one year                                                (337)               (108)

Net current assets                                                                              127                 297


Total assets less current liabilities                                                         4,296               3,583


Creditors: amounts falling due after more than one year                                        (57)               (101)

Provisions for liabilities and charges                                                         (12)                   -


                                                                                              4,227               3,482

Capital and reserves
Called up share capital                                                                       3,336               2,512
Share premium account                                                                         1,541               1,523
Merger reserve                                                                                (111)               (111)
Profit and loss account                                                                       (539)               (442)

                                                                                              4,227               3,482


GROUP CASH FLOW STATEMENT
                                                                                               2003                2002
                                                                                              £'000               £'000

Net cash inflow/(outflow) form operating activities                                             175                (27)

Returns on investments and servicing of finance
Interest received                                                                                 5                   7
Interest paid                                                                                   (5)                 (5)
                                                                                                  -                   2

Capital expenditure and financial investment
Payments to acquire tangible assets                                                             (5)                 (2)
Receipts from sale of tangible assets                                                             -                   4
                                                                                                (5)                   2
Acquisitions and disposals
Net debt acquired with subsidiary undertaking                                                 (181)                   -

Net cash outflow before financing                                                              (11)                (23)


Financing
Repayment of long term loans                                                                      -               (116)
Repayment of finance lease and hire purchase contract                                           (6)                 (4)
                                                                                                (6)               (120)

Decrease in cash                                                                               (17)               (143)




NOTE:

The financial information set out above does not constitute the Company's
financial statements for the year ended 31 December 2003.  The financial
statements for 2003 have been audited and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.  The auditors have
reported on the 2003 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 2003 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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