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Johnston Group PLC (JHT)

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Wednesday 26 September, 2001

Johnston Group PLC

Interim Results

Johnston Group PLC
26 September 2001

                                PRESS RELEASE

                               Interim Results
                   For the six months ended 30th June 2001

                                                           26th September 2001

Chairman's Statement

Results

Operating profit for the six months ended 30th June 2001 was £2.0 million
(2000 - £4.3 million) on turnover of £68.9 million (2000 - £72.2 million). As
predicted in my statement at the Annual General Meeting, the result for the
first half was substantially less than the record performance achieved in
2000.



The Board has declared a maintained dividend of 5.25p per ordinary share to be
paid on 7th December 2001 to shareholders registered on 9th November 2001.

Engineering

The engineering division has not fulfilled expectations. During the first six
months Johnston Engineering, although maintaining good order books,
encountered production difficulties in the manufacture of truck mounted
sweepers. This affected both deliveries and margins which in turn reduced
profits. These problems have been addressed and the second half is expected to
show an improvement as order books remain good.



In the US, Johnston Sweeper Company continues to make progress and has enjoyed
a profitable first half. A weaker order book, coupled with increased product
development costs, will depress results in the second half. Madvac, the
Canadian manufacturer of litter collectors and walk-behind sweepers, did not
produce the profits expected, largely because of insufficient sales support in
the US market; this deficiency is now being addressed.


The specialist vehicle companies, MacDonald Johnston Engineering and Saxon
Sanbec, have performed reasonably well. Despite good sales volumes of refuse
trucks, the Australian market has continued to be competitive and MacDonald
Johnston has suffered the effects of lower margins. The performance of Saxon
Sanbec has improved and the company is expected to have a profitable year.

Construction materials

Johnston Pipes has not had a good first half. Although the company maintained
its market share, the concrete drainage products market has been sluggish and
this has affected both volumes and margins. The GRP division has experienced
severe competition and contract slippage. The division has also borne the cost
of a redundancy programme to reduce overheads. The strengthening of order
books will enable both divisions to show improvements in the second half.



The management of Johnston Roadstone has performed extremely well in realising
the benefits from the recent investments in a new crushing plant and other
equipment.  The result has been an outstanding first half, exceeding
expectations.

Outlook

Currently, the overall order books continue to be satisfactory and the second
half should show an improvement over the first, although we will not achieve
the level of profit of last year. The recent events in the US, however,
introduce greater uncertainty in our business and already we are seeing delays
in customer acceptance of deliveries from our US operations.

Johnston House
Hatchlands Road
Redhill
Surrey
RH1 1BG

                                                                Roger Holland
                                                                Chairman

For further information:

Marcus Jordan, Group Managing Director       Lulu Bridges / Peter Willetts
Johnston Group PLC                           Tavistock Communications
Tel:  01737 242466                           Tel:  020 7600 2288


                             JOHNSTON GROUP PLC
                         GROUP PROFIT AND LOSS ACCOUNT

                                                 Unaudited            Audited
                                           Six months  Six months  Year ended
                                                   to          to        31st
                                            30th June   30th June    December
                                                 2001        2000        2000
                                                 £000        £000        £000
Turnover

Continuing operations                         68,928      72,230     141,415

Operating profit

Continuing operations                          1,993       4,300       6,563
Discontinued operations - share of
associate                                          -          51          65
                                                  
Total operating profit                         1,993       4,351       6,628
Profit on disposal of discontinued
operations                                         -       2,467       2,448
                                                   
Profit on ordinary activities before
interest                                       1,993       6,818       9,076
                                               
Interest receivable                              102         207         395
Exchange gain arising from disposal
proceeds                                           -         507         507
Interest payable and similar charges            (319)       (362)       (824)

Net interest and similar items                  (217)        352          78
                                                
Profit on ordinary activities before
taxation                                       1,776       7,170       9,154
Taxation                                         640       1,630       2,304

Profit on ordinary activities after
taxation                                       1,136       5,540       6,850
Minority equity interest                         490         491         862
                                                 
Profit attributable to shareholders              646       5,049       5,988
Dividends                                         
Preference                                        50          50         100
Ordinary                                         569         569       1,489

Retained profit                                   27       4,430       4,399

Dividends per ordinary share                    5.25p       5.25p      13.75p
                                               
Earnings per ordinary share
Basic                                           5.50p      46.49p      54.55p
Diluted                                         5.50p      46.35p      54.52p


                              JOHNSTON GROUP PLC
                             GROUP BALANCE SHEET

                                                   Unaudited            Audited
                                        30th June    30th June    31st December
                                             2001         2000             2000
                                             £000         £000             £000
Intangible fixed assets                     2,979        3,024            2,974
Tangible fixed assets and investments      30,794       31,156           30,915
                                           
                                           33,773       34,180           33,889

Current assets                             61,782       60,459           57,834
Creditors due within one year              32,947       38,501           36,528
                                          
Net current assets                         28,835       21,958           21,306

Total assets less current liabilities      62,608       56,138           55,195
Creditors due after one year                8,366        1,703            1,200
Provisions for liabilities and charges      2,487        2,777            2,480
                                            
                                           51,755       51,658           51,515
Capital and reserves                       50,155       50,185           49,964
Minority equity interest                    1,600        1,473            1,551
                                           51,755       51,658           51,515


                          GROUP CASH FLOW STATEMENT

                                                  Unaudited            Audited
                                            Six months  Six months  Year ended
                                                    to          to        31st
                                             30th June   30th June    December
                                                  2001        2000        2000
                                                  £000        £000        £000
Cash (outflow) /inflow from operating
activities                                       (913)      1,267       8,525
Returns on investment and servicing of
finance                                          (724)       (188)     (1,010)
Taxation                                         (611)       (489)     (2,112)
Capital expenditure                            (1,726)     (1,244)     (2,472)
Acquisitions                                     (391)     (3,232)     (3,535)
Disposals                                           -       6,143       6,143
Equity dividends paid                               -           -      (1,456)

Cash (outflow) /inflow before financing        (4,365)      2,257       4,083
Financing                                          94      (2,102)     (1,410)

(Decrease) /increase in cash for the
period                                         (4,271)        155       2,673
                                               


                                   JOHNSTON GROUP PLC
                             SEGMENTAL ANALYSIS BY ACTIVITY

                                               Unaudited              Audited
                                         Six months   Six months   Year ended
                                                 to           to         31st
                                          30th June    30th June     December
                                               2001         2000         2000
                                               £000         £000         £000
Turnover
Engineering                                 53,140       53,735      106,411
Construction materials                      15,788       18,495       35,004

                                            68,928       72,230      141,415


Operating profit /(loss) from
continuing operations
Engineering                                    955        2,004        2,766
Construction materials                       1,480        2,603        4,560
                                             2,435        4,607        7,326
Central                                       (442)        (307)        (763)
                                             1,993        4,300        6,563



The above financial information does not constitute full accounts for the year
ended 31st December 2000.  The interim financial information has been prepared
using the same accounting policies as were used in the Group's 2000 statutory
accounts.  Statutory accounts for 2000 which received an unqualified auditors'
report have been delivered to the Registrar of Companies.

This report will be sent to shareholders and will be available from the
company's registered office.