Final Results

Molins PLC
24 February 2004

24 FEBRUARY 2004                                          FOR IMMEDIATE RELEASE


                         2003 PRELIMINARY ANNOUNCEMENT

Molins PLC, the international specialist engineering company, announces its
results for the year ended 31 December 2003.

                                              2003            2002     Change
Sales                                      £121.8m         £106.0m       15%
Underlying operating profit*                £12.2m          £10.5m       16%
Profit before tax                           £11.0m          £12.7m      (13)%
Profit after tax                             £7.4m           £8.6m      (14)%
Underlying earnings per share*               44.6p           38.0p        17%
Basic earnings per share                     40.9p           46.8p       (13)%
Dividend per share                           12.6p           11.0p        15%



Highlights

•        Underlying operating profit* increased by 16% from £10.5m to £12.2m
•        Net pension credit of £3.0m in 2002 not repeated in 2003
•        Sasib acquired in August 2003 for £6.6m
•        Growth in underlying earnings per share* from 38.0p to 44.6p
•        Final dividend up from 7.0p to 8.0p

* Before net pension credit & goodwill

Peter Byrom, Chairman, commented:


'2003 was a year of continued development and progress for the Group, with both
of the operating divisions improving profitability and the acquisition of Sasib
providing a platform for growth in the longer term.

Overall, the higher order books going into 2004 in both operating divisions
provide some positive indicators for the current year, but the impact of
currency movements and the reduced contribution from rental income will affect
2004's performance.'

Enquiries:          Molins PLC                                Tel: [phone]
                    Peter Byrom, Chairman
                    David Cowen, Group Finance Director

Issued by:          Citigate Dewe Rogerson                    Tel: [phone]
                    Margaret George


CHAIRMAN'S STATEMENT

2003 was a year of continued development and progress for the Group, with both
of the operating divisions improving profitability and the acquisition of Sasib
providing a platform for growth in the longer term.

Sales by the existing businesses increased by 2% in sterling to £108.1m and by
5% in local currencies.  Total sales in the year were £121.8m (£106.0m).

Underlying operating profit (before net pension credit and goodwill
amortisation) increased by 16% to £12.2m (2002: £10.5m), which includes a
contribution of £0.3m from Sasib.  Underlying earnings per share grew by 17% to
44.6p from 38.0p.

The existing businesses of the Tobacco Machinery division capitalised on the
higher order book levels at the beginning of the year.  By the year end order
books were showing a further improvement although demand for new equipment had
slowed.  The continuing consolidation amongst cigarette manufacturers, with
factories being amalgamated and cigarette manufacturing lines rationalised, is
affecting demand.  However orders for rebuilt equipment have continued to be
strong.

Arista Laboratories had an excellent year with sales up 50% as it continues to
develop its range of analytical services and broadens its customer base.

Cerulean introduced its new range of quality test instruments, MC(2), to the
market during the year.  Testing by customers has been extensive and is
continuing, as they evaluate their requirements.  As a result of the transition
to the new products, sales and profits were lower than in the previous year.

On 29 August 2003, we completed the acquisition of Sasib for £6.6m, including
costs, plus the assumption of £5.1m of net debt.  Sasib, based in Bologna,
Italy, is a manufacturer of specialist machinery for the tobacco industry.  Its
products, which are predominantly packing machines for cigarette manufacturers,
are largely complementary to those of the rest of the division.  The early
co-operation with our existing businesses has been encouraging, although orders
were at low levels throughout 2003 and the business starts the year with a
relatively low order book.  The process of integration will continue during
2004.

The Packaging Machinery division improved its operating profit in continuing
difficult market conditions.  Encouragingly, the second half of the year saw
some increase in activity in the North American market.  Whilst it is too early
to suggest that trading conditions will be any easier in 2004, the division
entered the year with an increased order book and consequently the short-term
outlook is improved compared with this time last year.

During the last two years a considerable proportion of the surplus space
available at our Saunderton site has been let to a single tenant, producing an
income of £1.1m in 2003.  The tenant vacated the premises at the end of 2003 and
at this stage they remain largely unoccupied.  With only a very small proportion
of the available space at Saunderton now leased, rental income secured for 2004
is considerably lower than the previous two years.  We continue to assess our
options in relation to this site.

Board

After nine years as a director of the Company, Sam Saw will leave the Board at
the conclusion of the Annual General Meeting on 21 April 2004.  Sam's
contribution over this period has been considerable and he leaves the Board with
our very best wishes.

Dividend

The Board has recommended an increased final dividend of 8.0p (2002: 7.0p) per
share making a total of 12.6p (2002: 11.0p) for the year, an increase of 15%.
The final dividend will be paid on 12 May 2004 to ordinary shareholders on the
register at the close of business on 13 April 2004.  The total dividend is
covered more than three times by basic earnings per share.

Outlook

We are pleased with the early co-operation between the sales and marketing
activities of Sasib and our existing Tobacco Machinery division.  We believe
that the combined expertise of the businesses, together with our strong
commitment to operational efficiency improvement and cost control, will
reinforce the division's position in its market.  However, we do not expect a
contribution to Group earnings in the current year, as we absorb the costs of
integrating Sasib and move the business to new premises.

The order book for the Tobacco Machinery division is higher than a year ago,
although demand for original equipment has slowed over the last few months.  The
improved order book in the Packaging Machinery division provides an encouraging
start to the year and positions the division well for further progress.

As a global business with a predominantly non-US dollar cost base, the weakening
of the US dollar against most of the currencies in which we operate will have,
at present exchange rates, an adverse impact on the results of the Group.  This
arises from the translation of overseas earnings into sterling and in particular
from the effect on transactions where we sell to dollar denominated markets.

Overall, the higher order books going into 2004 in both operating divisions
provide some positive indicators for the current year, but the impact of
currency movements and the reduced contribution from rental income will affect
2004's performance.

Peter Byrom
Chairman
24 February 2004


OPERATING REVIEW
TOBACCO MACHINERY

Operating profit, before goodwill amortisation, increased by 15% from £9.2m to
£10.6m in 2003.  This includes a contribution from Sasib, purchased in August
2003, of £0.3m.  Underlying sales were 6% higher than the previous year at
£69.0m (2002: £65.2m) and 11% up in local currency terms.  Sasib contributed a
further £13.7m of sales, resulting in total sales in the division of £82.7m
(2002: £65.2m).

The division services customers in two main areas; through the design and
manufacture of specialist tobacco machinery and related support; and through its
scientific services businesses, with the provision of quality control
instrumentation and tobacco smoke constituent analysis, in support of regulatory
compliance and new product development.

Tobacco Machinery

Over the last three years we have invested in the development of our principal
products.  The upgrade to the MK9 cigarette maker, to produce 6,000 cigarettes a
minute, has opened new market opportunities.  The Concord FIFO cigarette
handling system and the advanced Pegasus filter system were introduced to the
market at the end of 2002.  The upgrade of the Passim cigarette maker is
complete and we can now offer performance at 10,000 cigarettes a minute on this
machine, which is the most economic and productive single-track maker in the
industry.  Development work continues on our filter making machinery.

Sales within the existing machinery businesses were £52.5m, 9% ahead of 2002
(£48.1m), and 13% ahead in local currencies.  These businesses benefited from a
strong order book at the beginning of 2003.  Sales of both new and rebuilt
machinery to the North American independent cigarette manufacturers were higher.
Despite evidence of a considerable slowdown in investment by some of these
companies, the order book at the end of 2003 was ahead of that at the beginning
of the year.  Sales of additional equipment and spare parts increased over the
year but prices were under pressure, principally due to adverse movements in the
exchange rates, resulting in some margin erosion.

Delivery lead time is an increasingly important factor in customers' purchasing
decisions.  This applies to new and rebuilt machinery, repairs and spares
supply.  We have increased inventories to improve our ability to meet customers'
requirements and to exploit market opportunities, including building modules for
original equipment and commissioning complete rebuilds of MK9-6K machines.  This
enables us to respond on a shorter lead time and, where appropriate, substitute
customers' existing machines to reduce down-time.  We have a permanent supply
capability, in respect of the most critical and high usage parts, offering a 24
hour service, which now extends to some 40% of spare parts sales.

To meet these requirements we have started to assemble MK9 machines at Molins
sro in Plzen in the Czech Republic, which is one of our principal sources of
spare parts.  This plant now employs some 150 people compared with 130 a year
ago and it increased its output of manufactured parts by 45% in the year.

We expect to reduce inventory levels in 2004 as we align inventories more
closely to the actual demands on our permanent supply facilities and when the
transition of MK9 assembly to Plzen has been completed.

In August we purchased Sasib S.p.A., based in Bologna, Italy.  The acquisition
represents a further extension of Molins' commitment to the tobacco industry.
Sasib designs and manufactures packing machines for cigarette producers.  The
acquisition enables the enlarged division to offer customers a complete line of
cigarette making machinery in our two principal speed ranges of 6,000 and 10,000
cigarettes a minute.  Sasib's principal products are two soft pack machines, the
Alfa, with a capacity of 500 packs a minute, and the Sasib 6000, which runs at
300 packs a minute.  It also has a hinge-lid packer, which runs at 300 packs a
minute, and is currently developing the Fenix packer, which is planned to run at
500 packs a minute.

As reported at the time of the acquisition, Sasib's machine order intake was low
compared with the previous year and the position showed little improvement
during the rest of the year.  Consequently, order books at the end of 2003 were
substantially below those of a year ago.  However, the business traded
profitably in the four months under Molins' ownership, returning an operating
profit of £0.3m on sales of £13.7m.  The level of sales in this period was
significantly higher than we would expect on an ongoing basis as Sasib was
committed to the delivery of a number of non-repeating projects on which little
or no profit was earned.

Since acquiring Sasib we have concentrated on establishing sound operational
procedures, integrating marketing, sales plans and training, to enable the wider
distribution channel to sell the enlarged product range.  Progress has also been
made in purchasing and sourcing of parts. Sasib specialises in the manufacture
of original equipment and we plan to extend our rebuild and refurbishment
activities to encompass Sasib products.  The business will be relocating in 2004
to new leased premises, close to the existing facility.  This will inevitably
cause some internal disruption but it will also provide an opportunity for
operational improvements.

Scientific services

Sales by the Scientific services businesses were £16.5m, similar to those of the
previous year.

Cerulean launched an updated version of its market-leading SM 400 smoking
machine, the SM 450.  Demand for this new machine has been strong.  The new
range of quality test instruments, MC(2), was also introduced during the year.
These instruments complement Cerulean's existing range of equipment and are
designed to provide complete on-line cigarette testing capabilities within
manufacturing and laboratory environments.  The product has been thoroughly
evaluated through rigorous customer trials.  Orders for the new product have
been affected by the continuing merger activity among the leading companies
within the tobacco industry, particularly in North America.  This, together with
rationalisation of cigarette production capacity in many parts of the world, has
led to a slow down in demand for test instruments.  Overall sales at Cerulean
were down by 15% compared with 2002.

Arista Laboratories, Inc., based in Richmond, Virginia, is a fully independent
smoke constituent analytical facility for the testing of cigarettes and tobacco.
It has maintained its development through 2003, delivering strong growth in
sales and profits and has invested in new laboratories for its existing range of
analytical services.  During 2003 the range of services offered was extended by
introducing test procedures for cigarette ignition propensity and the
toxicological effects of tobacco smoke, using in-vitro methods.

Arista Laboratories Europe, now based in Kingston upon Thames, completed its
anticipated move to new leased premises towards the end of the year.  The
renewal of the UK Government's annual smoke testing contract, commencing in
April 2004, was confirmed towards the end of 2003 following a public tender
process. Arista is established as the clear market leader in its field and both
the US and UK operations maintain ISO 17025 accreditation, working together to
ensure the highest levels of customer service.

Overall, the division made good progress in the year, with the development of
products and services and improved sales and profitability.  However, the
weakness of the US dollar and the slow down in the investment plans of some of
the US cigarette manufacturers are currently affecting the division's
performance.

PACKAGING MACHINERY

The division made progress in the year, returning an operating profit of £1.6m
compared with £1.3m in 2002, on marginally lower sales of £39.1m against £40.8m
in 2002.

Overall, market demand remains weak.  The impact of economic uncertainty within
the major markets in which we operate, together with industry consolidation
among multi-national food and other fast moving consumer goods companies,
continued to affect the division's performance in 2003.  Demand patterns are
still erratic and the ordering cycle for prospective new projects continues to
be long.  Against this background, price competition is intense, with customers
looking to demonstrate high returns on their investments and the machinery
suppliers trying to secure adequate activity levels.

However, there are signs that demand in North America is increasing.  Order
levels in the closing months of 2003 were relatively strong and Langen
Packaging, Sandiacre Rose Forgrove and ITCM all entered 2004 with good order
prospects.  The UK market remains stable, albeit at low levels, but the
continental European markets are still particularly difficult and margin
pressure is severe.

The weakness of the US dollar, compared with our main operating currencies of
sterling, the euro and the Canadian dollar, is affecting the competitive
position of the division.

We are continuing to address the cost base of the businesses.  We have started
to assemble some of the division's standard machines at the Molins sro site, in
Plzen, Czech Republic and we are developing a supplier base in Eastern Europe.
This action had minimal impact in 2003 and is only expected to build up slowly
in 2004, but is nevertheless an important step for the longer term.

Molins ITCM, based in Coventry, had a good year.  Although sales were at a
similar level to 2002, the profitability of the business improved.  ITCM has
built on its expanding base of blue chip, long-term customer relationships to
close the year with a record order book and a good spread of customers in the
pharmaceutical, personal care, food and other FMCG sectors.  The highly skilled
and customised engineering expertise of ITCM meets the stringent technical
demands of these sectors and the business can respond to the customers'
increasing emphasis on improving manufacturing efficiencies.

Sandiacre Rose Forgrove, based in Nottingham, UK and Pennsylvania, USA, had a
year of consolidation, with sales and profits at similar levels to the previous
year.  In North and Central America, order levels were particularly strong in
the second half of the year for Sandiacre bagging machines and for Rose Forgrove
wrapping systems, as the business develops its project and systems sales
capability.  Development of the product range continues to be an important
business objective, with the Rose Forgrove top-end flow-wrapping machine, the
Integra, being upgraded during 2003.  The Sandiacre reciprocating bagging
machine has also been enhanced and the 450RC was launched at the Packexpo show
in Las Vegas in October 2003.  This machine is aimed specifically at the
catering market for packing large bag, fresh and frozen foods and further
extends the most complete range of vertical bagging equipment in the market.

Sales levels at Langen Packaging, based in Mississauga, Ontario, were below
2002.  The business did not recover from a relatively low order book at the
beginning of the year.  However, the aftermarket part of the business increased
its sales, with Langen's increased focus on spare parts, services, rentals and
rebuilt machinery.  This helped to ensure that the business remained profitable.
In addition, new customers have been developed in the growing segment of
contract packers.  The second half of 2003 showed an increase in both quotation
and order levels and a significant number of projects are currently being
discussed with customers, although order patterns remain inconsistent.  The
business has continued to improve its product range, with further performance
and cost improvements to its B1 cartoner, which will continue in 2004.

Langenpac, based in the Netherlands, faced a weak European market.  Sales were
maintained at 2002 levels but the end of year order book was weaker than at the
same time last year.  Good progress has been made in selling the Chinook
cartoner, which has been installed with some major international customers in
Europe and the USA, and complementary options and accessories have been
developed.  The business has established a strong position in the niche markets
for the packaging of batteries, contact lenses, paper products and premium brand
spirits.  Given the continued uncertainty in the market the business is
currently taking action to reduce its cost base and is sharing in the initiative
to reduce operational costs through the partnership with the Plzen operation.

During 2003 Cerulean delivered similar levels of sales and profits from its
range of tube and filter packing machinery to those achieved in the previous
year.

The Packaging Machinery division enters 2004 with an improved order book.
Although markets remain challenging, the division is well placed to make further
progress through operational efficiencies and the prudent selection of product
development opportunities.

FINANCIAL REVIEW

The Group has generated further growth in underlying earnings, with both
divisions delivering improved profits.  Underlying earnings per share, before
net pension credit and goodwill amortisation, increased by 17% to 44.6p from
38.0p.  Basic earnings per share fell by 13% to 40.9p, reflecting a nil net
pension credit in 2003 (2002: £3.0m) as a result of an update to the pension
accounting assumptions.

Operating results

The trading performance of the Group is discussed in the Operating review.  In
summary, sales increased by 15% to £121.8m in total, and by 5% in local
currencies excluding acquisitions.  Tobacco Machinery sales increased by 6% in
sterling (11% in local currencies) before acquisitions and increased in total by
27% to £82.7m.  Packaging Machinery sales fell by 4% to £39.1m.  The operating
profit for the year was £12.2m before a goodwill charge of £0.7m and net pension
credit of £nil (2002: £10.5m before a goodwill charge of £0.5m and net pension
credit of £3.0m).  The operating profit of Tobacco Machinery before the goodwill
charge was £10.6m (2002: £9.2m), which includes a contribution to profit by
Sasib, purchased in the year, of £0.3m and rental income from surplus property
of £1.1m (2002: £0.9m).  The operating profit of Packaging Machinery increased
by 23% to £1.6m (2002: £1.3m).

Acquisitions

On 29 August 2003 Molins acquired Sasib S.p.A., a manufacturer of specialist
packing machinery for the tobacco industry, for £6.6m and the assumption of
£5.1m of net debt, from CIR S.p.A.  In the four months under Molins ownership,
Sasib generated sales of £13.7m and an operating profit of £0.3m.  Its sales in
that period do not reflect an ongoing level of trade, as it was committed to the
delivery of a number of projects on which little or no profit was made.

Interest and taxation

Net interest expense in 2003 was £0.5m (2002: £0.3m) reflecting the higher
average level of debt in the year following the acquisition of Sasib, which was
financed from bank borrowings.  Net debt stood at £21.5m at the end of the year
(2002: £4.7m).  The 2003 Group total taxation charge was £3.6m (2002: £4.1m),
comprising £2.8m of current tax (2002: £2.1m) and £0.8m of deferred tax (2002:
£2.0m).  The overall effective rate of tax was 33% (2002: 32%).

Earnings per share

Underlying earnings per share, before net pension credit and goodwill
amortisation, was 44.6p (2002: 38.0p), an increase of 17%.  The basis of
calculating underlying earnings per share has been changed from previous years
to exclude the effect of the SSAP 24 net pension credit.  Basic earnings per
share was 40.9p (2002: 46.8p) and diluted earnings per share was 36.8p (2002:
42.9p).

Dividend

The Board recommends the payment of an increased final dividend of 8.0p (2002:
7.0p), which together with the interim dividend of 4.6p makes a total for the
year of 12.6p (2002: 11.0p), an increase of 15%.  The dividend is covered more
than three times by basic earnings per share.

Cash treasury and funding activities

Group net debt at the end of 2003 amounted to £21.5m (2002: £4.7m).  Net cash
inflow from operating activities was £5.6m (2002: £7.5m).  Working capital
increased in 2003 by £10.3m, largely due to an increase in inventory levels of
£6.0m.  This reflected a higher level of work in progress at the end of 2003,
for despatch in the early part of 2004, and the response to the shorter lead
time requirements of customers.  Debtors increased by £3.3m reflecting
significant trading towards the end of the year.

Operating cash inflow was offset by net capital expenditure of £4.2m, the
acquisition costs of Sasib of £6.6m, assumption of Sasib's net debt of £5.1m and
a final deferred payment for the Arista Laboratories, Inc. business of £0.5m.
Net interest paid amounted to £0.5m and taxation of £3.3m was paid.  Net
expenditure arising from the issue of new shares and the purchase of existing
shares under employee share schemes amounted to £0.4m and dividends of £2.2m
were paid in the year.

The principal financial risks to which the Group is exposed are currency and
interest rate movements.  The Group does not trade in financial instruments and
enters into derivatives (principally forward foreign exchange contracts) solely
for the purpose of minimising currency exposures on sales or purchases not in
the functional currencies of its various operations.  Group policy is to enter
into forward foreign exchange contracts at the point of commitment to
transactions in currencies other than the functional currency of the business
concerned.

The Group maintains bank facilities denominated in both sterling and
multi-currency appropriate to meet expected needs.  Committed facilities are
subject to covenants covering net worth, gearing and interest cover.  Any
draw-down against facilities is as an individual contract and the interest rate
margin is fixed for the duration of the contract based on prevailing bank rates.
The Group currently has little borrowing at fixed interest rates.  Short-term
overdrafts and borrowings are utilised around the Group to meet local cash
requirements.  These are typically denominated in local currencies.  Foreign
currency borrowings are used to hedge investments in overseas subsidiaries where
appropriate.

Reporting standards

There has been no material impact on the Group's reported results in 2003 as a
result of changes in accounting standards.  The Group is currently preparing for
the introduction of International Financial Reporting standards, which are
expected to be adopted in 2005.

Pension valuations

The Company continues to account for pension costs under SSAP 24 Accounting for
pension costs, based on the triennial valuations of the UK Pension Fund and
Scheme (now one fund) that were carried out as at 30 June 2000 and adopted by
the Company for the 2001 financial year.  These were updated to reflect more
closely conditions prevailing at the beginning of 2003.  As a result there was a
nil net pension credit for 2003, compared with a net credit of £3.0m in 2002.

A triennial valuation of the fund was undertaken by independent actuaries as at
30 June 2003.  The result of the valuation was that a surplus in excess of three
years worth of employer's contributions existed at that date and the fund's
trustee and the Company have agreed that the employer's contribution holiday
will continue to 30 June 2006, at which time the next triennial valuation will
take place.  On the basis of current assumptions the Company would expect to
start contributing to the fund from that date.

In line with many similar pension schemes, the FRS 17 Retirement benefits
valuation continues to show a funding deficit at the end of 2003.  On the basis
of the assumptions used, the deficit was £16.0m (net of deferred tax) at 31
December 2003 (2002: £5.1m).  Whilst there had been an increase in the value of
the fund's assets this was more than offset by the effect of lower interest
rates and mortality rates on the value of pension liabilities.

Shareholders' funds

Group shareholders' funds at 31 December 2003 were £66.0m (2002: £61.6m).
Profit in the year of £7.4m was offset by dividends of £2.3m and adverse
exchange movements on the net assets of overseas operations of £0.8m.

David Cowen
Group Finance Director
24 February 2004

Group profit and loss account for the year ended 31 December

                                                                                        2003               2002
                                                                     Notes                £m                 £m
Turnover
 - existing businesses                                                                 108.1              106.0
 - acquisitions                                                                         13.7                  -

Turnover - continuing operations                                     3 & 4             121.8              106.0
Cost of sales                                                                          (82.0)             (68.2)

Gross profit                                                                            39.8               37.8
Distribution costs                                                                     (10.3)              (8.7)
Administrative expenses                                                                (18.0)             (16.1)

Operating profit
 - existing businesses                                                                  11.2               13.0
 - acquisitions                                                                          0.3                  -

Operating profit - continuing operations                             3 & 6              11.5               13.0

Net interest payable                                                                    (0.5)              (0.3)

Profit on ordinary activities before taxation                                           11.0               12.7

Taxation                                                                                (3.6)              (4.1)

Profit for the financial year                                                            7.4                8.6

Dividends (including non-equity)                                                        (2.3)              (2.0)

Retained profit for the year                                                             5.1                6.6


Underlying earnings per ordinary share                                7                  44.6p              38.0p
Basic earnings per ordinary share                                                        40.9p              46.8p
Diluted earnings per ordinary share                                   7                  36.8p              42.9p

Interim dividend paid October                                                             4.6p               4.0p
Proposed final dividend                                                                   8.0p               7.0p

Total dividend                                                                           12.6p              11.0p


The calculations of earnings per share are based on the following weighted
average number of shares:

Underlying and basic - 18,072,665 (2002: 18,147,554).  Diluted - 20,043,765
(2002: 19,820,314).



Group balance sheet as at 31 December

                                                                                        2003               2002
                                                                     Note                 £m                 £m
Fixed assets
Intangible assets - goodwill                                                            14.8               10.7
Tangible assets                                                                         22.6               19.9
Investments                                                                              3.8                4.0

                                                                                        41.2               34.6
Current assets
Stocks                                                                                  40.3               24.0
Debtors - due within one year                                                           37.0               21.2
Debtors - due after more than one year                                6                 28.1               26.2
Cash at bank and in hand                                                                 7.0                2.1

                                                                                       112.4               73.5
Creditors - amounts falling due within one year
Borrowings                                                                              (4.0)              (1.7)
Other creditors                                                                        (46.0)             (30.1)
Proposed dividend                                                                       (1.4)              (1.3)

                                                                                       (51.4)             (33.1)

Net current assets                                                                      61.0               40.4


Total assets less current liabilities                                                  102.2               75.0

Creditors - amounts falling due after more than one year
Borrowings                                                                             (24.5)              (5.1)

Provisions for liabilities and charges                                                 (11.7)              (8.3)

Net assets                                                                              66.0               61.6

Capital and reserves
Called up share capital                                                                  5.9                5.9
Share premium account                                                                   25.9               25.8
Revaluation reserve                                                                      5.6                5.6
Capital redemption reserve                                                               3.9                3.9
Profit and loss account                                                                 24.7               20.4

Shareholders' funds (including non-equity interests)                                    66.0               61.6




Group cash flow statement for the year ended 31 December

                                                                                         2003              2002
                                                                    Notes                  £m                £m

Net cash inflow from operating activities                             8                   5.6               7.5

Returns on investments and servicing of finance                                          (0.6)             (0.6)

Taxation                                                                                 (3.3)             (2.4)
Capital expenditure (net)                                                                (4.2)             (1.4)
Acquisitions and disposals                                                               (9.3)             (3.3)
Equity dividends paid                                                                    (2.1)             (1.6)

Net cash outflow before financing                                                       (13.9)             (1.8)

Financing                                                             9                                     2.9
                                                                                         17.4

Increase in cash in the year                                                              3.5               1.1



Reconciliation of net cash flow to movement in net debt for the year ended 31
December


                                                                                         2003              2002
                                                                                           £m                £m

Increase in cash in the year                                                              3.5               1.1

Cash inflow from increase in debt and lease financing                                   (17.8)             (3.3)

Change in net debt resulting from cash flows                                            (14.3)             (2.2)
Net debt acquired with business                                                          (2.9)             (0.1)
Translation movements                                                                     0.4               0.3

Movement in net debt in the year                                                        (16.8)             (2.0)
Net debt at 1 January                                                                    (4.7)             (2.7)

Net debt at 31 December                                                                 (21.5)             (4.7)




Statement of total recognised gains and losses for the year ended 31 December

                                                                                         2003              2002
                                                                                           £m                £m
Profit for the year                                                                       7.4               8.6
Currency translation movements arising on foreign
  currency net investments                                                               (0.8)             (2.4)

Total recognised gains and losses for the year                                            6.6               6.2




Reconciliation of movements in shareholders' funds for the year ended 31
December

                                                                                        2003              2002
                                                                                          £m                £m
Opening shareholders' funds                                                             61.6              57.2

Profit for the year                                                                      7.4               8.6
Dividends                                                                               (2.3)             (2.0)
Currency translation movements arising on foreign
  currency net investments                                                              (0.8)             (2.4)
Issue of new shares                                                                      0.1               0.2

Net increase in shareholders' funds                                                      4.4               4.4

Closing shareholders' funds                                                             66.0              61.6


Notes to preliminary announcement

1.                   The Group's accounts have been prepared in accordance with
applicable accounting and financial reporting standards.

2.                   The financial information set out above does not constitute
the Group's statutory accounts for the years ended 31 December 2003 and 2002 but
is extracted therefrom.  The Group's statutory accounts for 2003 will be sent to
shareholders by 17 March 2004.  The Group's statutory accounts for 2003 and 2002
each received an unqualified auditors' report.

3.                  Segmental analysis for the year ended 31 December

                                  Turnover              Operating profit               Net assets

                               2003        2002         2003         2002         2003         2002
                                 £m          £m           £m           £m           £m           £m
By activity:

Continuing operations

Tobacco Machinery
  - trading                    69.0        65.2          9.2          8.3
  - property rental               -           -          1.1          0.9
income

Tobacco Machinery              69.0        65.2         10.3          9.2         36.8         27.8
  - existing businesses        13.7           -          0.3            -          7.9            -
  - acquisitions
                               82.7        65.2         10.6          9.2         44.7         27.8
Tobacco Machinery
                               39.1        40.8          1.6          1.3         11.1         10.7
Packaging Machinery

Net pension credit/                                        -          3.0         16.9         17.1
  prepayment
                                                        (0.7)        (0.5)        14.8         10.7
Goodwill
(Tobacco Machinery
businesses)

                              121.8       106.0         11.5         13.0         87.5         66.3

Net debt                                                                         (21.5)        (4.7)

Net assets                                                                        66.0         61.6


4.       Turnover by geographical destination of goods for the year ended 31
December


                                                 2003           2003           2002           2002
                                                   £m              %             £m              %

United Kingdom                                   15.1             13           16.9             16
Continental Europe                               18.5             15           17.7             17
North America                                    45.5             37           37.2             35
Asia                                             29.4             24           22.8             21
Rest of the world                                13.3             11           11.4             11

                                                121.8            100          106.0            100

5.       If the average exchange rates prevailing in 2003 had been the same as
in 2002 in respect of the existing businesses, reported turnover for the Group
would have increased by £2.9m (£3.1m increase in Tobacco Machinery and £0.2m
decrease in Packaging Machinery).

6.       Operating profit includes a net pension credit of £nil (2002: £3.0m).
Debtors due after more than one year includes a pension fund prepayment of
£24.4m (2002: £24.7m), which after taking account of deferred taxation nets to
£16.9m (2002: £17.1m).

7.       Basic earnings per ordinary share of 40.9p (2002: 46.8p) is based upon
profit after taxation (less preference dividends).  Underlying earnings per
share of 44.6p (2002: 38.0p) has been calculated before the charge for goodwill
amortisation and, for the first time, the net pension credit.  The reported
figure for 2002 of 49.6p has been restated to 38.0p to reflect this change.

8.       Reconciliation of operating profit to net cash flow from operating
activities for the year ended 31 December

                                                                                     2003            2002
                                                                                       £m              £m

Operating profit                                                                     11.5            13.0

Amortisation of goodwill                                                              0.7             0.5

Depreciation                                                                          2.5             2.3

Other movements                                                                       1.3             0.6

Cash movements on exceptional restructuring and rationalisation
  provisions                                                                         (0.1)           (0.3)

Working capital movements:
   - stocks                                                                          (6.0)           (2.0)
   - debtors                                                                         (3.3)           (0.8)
   - creditors and other provisions                                                  (1.0)           (2.8)
   - pension fund prepayment                                                            -            (3.0)

Net cash inflow from operating activities                                             5.6             7.5



Cash flows from exceptional items excluding tax effect                               (0.1)           (0.3)
Other cash flows                                                                      5.7             7.8

Net cash inflow from operating activities                                             5.6             7.5




9.       Financing for the year ended 31 December


                                                                                     2003            2002
                                                                                       £m              £m

Issue of new shares                                                                   0.1             0.2
Purchase of own shares for long-term incentive plan                                  (0.5)           (0.6)
Debt due after more than one year: increase in borrowings                            17.8             3.4
Capital element of finance lease rental payments                                        -            (0.1)

Net cash inflow from financing                                                       17.4             2.9





                      This information is provided by RNS
            The company news service from the London Stock Exchange       R SEAFUDSLSEFE