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Wilshaw PLC (WSW)

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Monday 03 July, 2000

Wilshaw PLC

Prelim Results to March 2000

Wilshaw PLC
3 July 2000


Preliminary results for the year ended 31 March 2000

Highlights

Operating profits of continuing businesses up 24% from £2,771,000 to
£3,432,000

Approximately £21m of surplus funds returned to shareholders by means of a
tender offer at 55p per share

Final dividend of 0.9p per share, giving 1.4p for the full year, up 27%


Chairman's statement


Results and dividend
Following the disposals of the distribution and building products divisions
during the previous two years, the group's activities now comprise the powder
metals division which manufactures and distributes magnets and high alloy
steel powders.  This business increased its profits by 13% from £3,853,000 to
£4,363,000, on turnover up 7% at £22,812,000 (1999:  £21,253,000).    The
increase in profitability was largely due to the performance of the magnets
operation which benefited from reduced raw material prices as well as
increased demand for magnets used in a variety of non-automotive applications.
Sales of powders have continued at a comparable level to last year.

After central costs, operating profits from continuing operations increased by
24% to £3,432,000 from £2,771,000. Profit before tax for the year was
£4,016,000 (1999: £6,754,000) after exceptional items (net) of £193,000 (1999:
£2,170,000) arising on the disposal of non-core operations. Earnings per share
were 4.28p (1999: 5.74p).

The board is recommending a final dividend of 0.9p (1999: 0.8p) per ordinary
share, payable on 2 October 2000, to shareholders on the register on 14  July
2000.  This brings the total dividend for the year to 1.4p (1999:  1.1p), an
increase of 27% over last year.


Review of operations

Magnets
The operating profit of the magnets business increased by 15% compared to the
prior year, on turnover up approximately 10%.  The growth in turnover was
largely due to the strong demand from the mobile phone sector as well as the
full year impact of contracts won last year in the DVD and CD ROM markets.
Margins increased due to productivity improvements, sales mix and the fall in
the price of cobalt.

Our development program is now focused on technically demanding soft magnet
applications.  The first component for a fuel injection application went into
production during October, and although volumes are still relatively low we
now have access to major customers in the heavy duty diesel engine sector.   A
significant order has been won for diesel injection systems in cars and a  new
production line is being installed, at a total cost of approximately £1.1m, in
anticipation of volume production in the second half of the current year.

Powders
The operating profits of Powdrex were up 8% on turnover broadly comparable to
the prior year.  Although sales volumes increased by approximately 8% this was
not reflected in increased turnover as the benefit of lower raw material
prices was passed on to key customers in accordance with supply agreements.
Demand for our patented corrosion resistant material, validated   for
turbochargers, and the fully dense material for use in heavy duty valve seat
inserts, was disappointing as development projects were delayed by customers.
We still believe these materials offer significant technical advantages for
certain applications and expect the market to develop in the future.

Corporate developments
Following the disposal of its distribution and building products divisions,
during 1998 and 1999 respectively, the group had significant cash balances at
its disposal which were surplus to requirement.  Consequently, on 23 July
1999, approximately £21m of the surplus funds were returned to shareholders,
by way of a tender offer at 55p per share, reducing the share capital by
approximately 40%.

Prospects
Trading in the first quarter of the current financial year is satisfactory,
taking into account the level of investment currently being made in new
product development, and we are particularly optimistic about the future
growth potential of our range of soft magnets.

Guy Askham
Chairman
30 June 2000


                                                                              
                     Consolidated profit and loss account                     
                              _________________                               
                                                                              
                       for the year ended 31 March 2000                       


                                             2000             1999
                                            ________         ______
                                   Note      £'000           £'000

Turnover
Continuing operations                       22,812           21,253
Discontinued operations                        -              5,682
                                            _______         _______
                                            22,812           26,935
Cost of sales                              (13,610)         (17,315)
                                            _______         _______
Gross profit                                 9,202            9,620
Net operating expenses                      (5,770)          (6,065)
                                            _______         _______ 
Operating profit                     2
Continuing operations                        3,432            2,771
Discontinued operations                          -              784
                                             3,432            3,555 
Profit on sale of building                       
products division                                -            2,110
Release of amounts previously
provided in respect of other                   193               60
discontinued operations (net)
                                            _______          _______ 
Profit on ordinary activities
before interest                              3,625            5,725
Interest receivable and similar                
income                                         445            1,031
Interest payable and other                     (54)             (2)
similar charges
                                            _______          _______ 
Profit on
ordinary activities                          4,016            6,754
before taxation
Tax on profit on ordinary                   (1,120)          (1,404)
activities
                                            _______          _______ 
Profit
for the financial year                       2,896             5,350
Dividends                          3          (783)             (733)
                                            _______          _______
Retained profit for the financial            2,113             4,617
year
                                            _______          _______

Earnings per share                 4         4.28p             5.74p
                                            _______          _______

Diluted earnings per share         4         4.28p             5.71p
                                            _______          _______





                          Consolidated balance sheet                          
                              _________________                               
                                                                              
                               at 31 March 2000                               

                                         2000             1999
                                   _______________      ______________
                                   £'000     £'000      £'000    £'000
Fixed assets
Tangible assets                              7,206               6,347

Current assets
Stock                              2,611                2,398
Debtors                            3,708                3,516
Current asset investments             58                   62
Cash at bank                       2,905               23,416
                                  _______              _______
                                   9,282               29,392
Creditors:
Amounts falling due within        (4,463)             (4,544)
one year
                                   _______             _______
Net current assets                           4,819              24,848
                                            _______             _______
Total assets less current                   12,025              31,195
liabilities


Provisions for liabilities                  (1,265)             (1,421)
and charges
                                            _______             _______
Net assets                                  10,760              29,774
                                            _______             _______
Capital and reserves
Called up share capital                      2,800               4,677
Share premium account                        2,004               1,885
Capital redemption reserve                   1,933                  28
Profit and loss reserve                      4,023              23,184
                                            _______             _______
Shareholders' funds - equity                10,760              29,774
                                            _______             _______





                       Consolidated cash flow statement                       
                              _________________                               
                                                                              
                       for the year ended 31 March 2000                       

                                                 2000         1999
                                     Note     _________    __________
                                                £'000        £'000

Cash flow from operating            5 (a)       3,888        3,577
activities
Return on investments and                         443          553
servicing of finance
Taxation                                       (1,139)      (1,061)
Capital expenditure                            (1,711)        (811)
Acquisitions and disposals                        (57)       3,379
Equity dividends paid                            (729)        (934)
                                               _______      _______ 
Cash inflow before use of liquid                  695        4,703
resources and financing

Financing
Issue of shares                                   147          108
Purchase of own shares                        (21,308)           -

Cash inflow from management of liquid resources                             
Net sale of current asset                           -        8,536
investments
                                               _______     _______
(Decrease)/increase in cash in       5(b)     (20,466)      13,347
period
                                               _______     _______






           Reconciliation of net cash flow to movement in net funds           
                              _________________                               
                                                                              
                       for the year ended 31 March 2000                       


                                            2000            1999 
                                           _______         _______ 
                                            £'000          £'000

(Decrease)/increase in cash in period     (20,466)         13,347
Cash inflow from management of               -             (8,536)
liquid resources                          _______          ______

Change in net funds resulting from        (20,466)          4,811
cash flows
Translation difference                        (45)            252
Change in market value of investments          (4)            239
                                          _______          _______
Movement in net funds in the period       (20,515)          5,302
Net funds at beginning of year             23,478          18,176
                                          _______         _______ 
Net funds at end of year                    2,963          23,478
                                          _______         _______

Notes

1.  The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 March 2000 or 1999 but is derived
from those accounts. Statutory accounts for 1999 have been delivered to the
Registrar of Companies, whereas those for 2000 will be delivered following the
Company's Annual General Meeting.  The auditors have reported on those
accounts; their reports were unqualified and did not contain a statement under
section 237(2), (3) or (4) of the Companies Act 1985.
Copies of the annual report will be posted to shareholders, and available from
the Company Secretary at 12-14 Hill Street, Richmond TW9 1TN, by 30 July 2000.

2.  Turnover and segmental analysis

                                       2000                   1999
                             _______________________   _____________________
                             Turnover  Profit   Net    Turnover Profit   Net
                                       Before  assets           Before  assets
                                       Tax                      Tax
                              £'000    £'000   £'000   £'000    £'000    £'000
Continuing operations
Magnets                       18,613   3,191   7,098   16,990   2,772    6,242
Powders                       4,199    1,172   1,645    4,263   1,081    1,519

                             _______   ______  _____   ______  ______    _____
Powder metals division        22,812   4,363   8,743   21,253   3,853    7,761
Central costs                           (931)                  (1,082)
                                       ______                  ______

                                       3,432                    2,771
Discontinued operations
Building products division        -        -      -     5,194     787       -
Castal (1986) Limited             -        -      -       488      (3)      -
                             _______           _____   ______            _____

                              22,812           8,743   26,935            7,761
                             _______                   ______
                                      _______                  ______
Operating profit                       3,432                    3,555

Profit on sale of building               -                      2,110
products division
Release of amounts
previously provided in                   193                       60
respect of discontinued
operations (net)
Interest receivable (net)                443                      553
Investment income (net)                  (4)                      239
Currency (loss)/gain                    (48)                      237
                                      _______                  ______

Group profit before tax                4,016                    6,754
                                      _______                  ______

Cash and investments                             2,987                 23,478
Unallocated liabilities                           (970)                (1,465)
                                                 _____                 ______

Group net assets                                10,760                 29,774
                                                 _____                 ______

3. An interim dividend of 0.5p per ordinary share was paid to
shareholders on 1 February 2000. A final dividend of 0.9p per ordinary share
will be proposed at the Annual General Meeting payable on 2 October 2000
to shareholders on the register on 14 July 2000.

4. Earnings per share has been calculated on the profit after taxation of
£2,896,000 (1999: £5,350,000) and the weighted average of 67,680,000 shares in
issue during the year (1999: 93,276,000). Diluted earnings per share has been
based on 67,733,000 shares (1999: 93,685,000).  The dilution of the weighted
average number of shares is attributable to options over the share capital of
the company.

5.  Cashflow
(a) Reconciliation of operating profit to net cash inflow
from operating activities
                                               2000            1999
                                              £'000           £'000

Operating profit                              3,432           3,555
Depreciation                                    989           1,021
(Gain)/loss on sale of tangible fixed            (4)             18
assets
Stock (increase)/decrease                      (202)            138
Debtors increase                               (172)           (451)
Creditors decrease                             (155)           (704)
                                             _______         _______

Net cash inflow from operating activities    3,888            3,577
                                             _______         _______


(b) Analysis of net funds
                                  At      Cash    Other   Exchange      At
                                   1      flow     non-   movement      31
                               April               cash              March
                                1999            changes               2000
                               ______   _______  _______  _______   ______    
                               £'000     £'000    £'000    £'000    £'000
   
Cash in hand, at bank         23,416   (20,466)       -      (45)   2,905
Liquid resources                  62         -       (4)       -       58
                               ______    ______   _______ _______  _______ 
Net funds                     23,478   (20,466)      (4)     (45)   2,963
                               ______    ______   _______ _______  _______



Cash, for the purpose of the cash flow statement comprises cash in hand and
deposits repayable on demand, less overdrafts payable on demand. Liquid
resources are current asset investments which are disposable without
curtailing or disrupting the business and are either readily convertible into
known amounts of cash at or close to their carrying value or traded in an
active market.



For further information please contact:

Wilshaw PLC
Peter Reynolds                           020 8332 0690

Hansard Communications.Com Ltd           020 7735 9415
Takki Sulaiman
0385 908158