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UCM Group PLC (UCM)

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Thursday 26 September, 2002

UCM Group PLC

Interim Results

UCM Group PLC
26 September 2002



Embargoed until 7.00am                26 September 2002

                      UCM Group PLC

  Interim Results for the six months ended 30 June 2002


UCM, the leading provider of speciality fused minerals,
today announces its interim results for the half year to
30 June 2002.

Financial Highlights

                  Six months ended  Six months ended
£ Millions            30 June 2002      30 June 2001

Turnover                     17.62             17.82
Profit before tax             1.85              2.37
Earnings per share             5.4p              6.7p
Interim dividend               2.5p              2.3p


Key Highlights

* Recovery  in  turnover and profits  from  depressed
  second half of 2001

   - Turnover 13% ahead of six months to 31 December 2001

   - Pre-tax profit 92% up on six months to 31  December
     2001

* Sales  to  Domestic and Industrial  Appliances  and
  Automotive increased but Steelmaking lower

* Interim dividend increased to 2.5p (2001: 2.3p)

* Capital  expenditure  programme  continues:  £1.53m
  (2001: £920,000)

John Gordon, Chairman, said,

'I  am  pleased  to  report  that  we  have  achieved  an
encouraging  recovery after the depressed performance  of
the previous six months, albeit that profits do not match
those of the first half year of 2001.

'Our  continuing  investment  programme  should  have   a
positive impact in 2003.'

Enquiries:

UCM Group PLC                  (On the day) 020 7950 2800
John Gordon, Chairman           (Thereafter) 01785 223122
Bob Hughes, Chief Executive
Melvyn Fookes, Group Finance
Director

Weber Shandwick Square Mile                 020 7950 2800
Terry Garrett or Alex White or Stephanie Smart



                      UCM Group PLC

  Interim Results for the six months ended 30 June 2002


Chairman's Statement

Six months ended 30th June 2002

There  has been an encouraging recovery in both  turnover
and profits from the depressed results of the second half
of  2001,  although  these are still short  of  the  good
performance   of  the  first  half  of  2001.    Turnover
increased  by  13  per  cent and pre-tax  profits  almost
doubled,  compared  to the previous six  months.   Profit
before  taxation for the six months ended 30th June  2002
amounted to £1,852,000 (2001: £2,371,000) on turnover  of
£17,624,000 (2001: £17,823,000).  Earnings per share  for
the period were 5.4p (2001: 6.7p).

Dividends

The  Directors  have  decided  to  increase  the  interim
dividend to 2.5p per share (2001: 2.3p).

Trading

Sales  of magnesia products, principally for the domestic
and industrial appliance sector, have grown in the period
resulting in an increase in market share in North America
and  Europe.  Whilst sales into Asia have declined in the
period, prospects for growth remain good.

The  performance  of standard zirconia  products  in  the
period  has been disappointing, largely because of  lower
sales   to  the  steelmaking  sector,  where  competition
remains  intense, and exchange rates have worked  against
us.

Sales  of  advanced ceramic materials show a  significant
improvement over the second half of 2001.  This  reflects
a  recovery  in  sales of oxygen sensors  and  continuing
sales  growth for micronised monoclinic zirconia for  use
in   brake  pads,  both  products  being  sold  into  the
automotive sector.

Capital Expenditure

The  group's  capital expenditure programme continues  on
time  and within budget.  Production of magnesia  in  the
United  States  has  now been rationalised,  leaving  the
plant in Tennessee entirely free for zirconia production.
Installation of the new zirconia facilities there  should
be complete during the last quarter of 2002.

Pension Fund

The  final  salary  pension scheme for employees  in  the
United   Kingdom  was  closed  in  April  2002.   Pension
arrangements  for these employees are now  on  a  defined
contribution basis.

Outlook

There  is at present no sign of a significant improvement
in  the  economic  outlook for any of the  major  markets
served by the group.

Investment in the venture in China for the production  of
magnesia for the Asian market should be complete  by  the
end of this year.  This, together with the completion  of
the  group's capital expenditure programme, should enable
it  to achieve additional manufacturing efficiencies  and
enhance  its  strategic position within its  key  product
areas.   For timing reasons these may have little  effect
on  the  second half of 2002, but should have a  positive
impact on profitability from 2003 onwards.

                        - ends -

Enquiries:

UCM Group PLC                  (On the day) 020 7950 2800
John Gordon, Chairman           (Thereafter) 01785 223122
Bob Hughes, Chief Executive
Melvyn Fookes, Group Finance
Director

Weber Shandwick Square Mile                 020 7950 2800
Terry Garrett or Alex White or Stephanie Smart




CONSOLIDATED PROFIT AND LOSS ACCOUNT
(for the six months ended 30th June 2002)


                         Unaudited   Unaudited         Audited
                        Six Months  Six Months            Year
                             Ended       Ended           Ended
                         30th June   30th June   31st December
                              2002        2001            2001
                                   As restated     As restated
                            £'000s      £'000s          £'000s
Turnover
 Continuing operations       17624       17823           33439
                            _______     _______         _______
Operating profit
 Continuing operations        2052        2549            3712

Net interest payable         (200)       (178)            (375)
                           _______     _______          _______
Profit on ordinary
activities before taxation   1852        2371             3337
Taxation                     (557)       (779)            (958)
                           _______     _______          _______
Profit on ordinary
activities after taxation    1295        1592             2379
Dividends                    (598)       (550)           (1747)
                           _______     _______          _______
Retained profit               697        1042              632
                           _______     _______          _______
Earnings per ordinary share
Basic and diluted             5.4p        6.7p             9.9p
                           _______     _______          _______



Earnings per share for the period have been calculated on
profits  after  taxation divided by  23929307  being  the
weighted average number of ordinary shares of 5p each  in
issue  during  the  period  - (2001  full  year  weighted
average   23924263,  2001  half  year  weighted   average
23921307).


CONSOLIDATED BALANCE SHEET
(as at 30th June 2002)

                           Unaudited   Unaudited        Audited
                           30th June   30th June  31st December
                                2002        2001           2001
                                     As restated    As restated
                              £'000s      £'000s         £'000s

Fixed assets
 Intangible assets               117         152            136
 Tangible assets               15757       12844          15449
                             _______     _______        _______

                               15874       12996          15585
                             _______     _______        _______

Current assets
 Stock                          8242        8344           7949
 Debtors                        8158        8053           7537
 Cash                            768         298           1179
                             _______     _______          _____

                               17168       16695          16665

Creditors
 Amounts falling due
 within one year              (12224)      (9154)        (11675)
                             _______      _______        _______

                                4944        7541           4990
Net current assets           _______      _______        _______

Total assets less
current liabilities            20818       20537          20575

Creditors
 Amounts falling due
 after more than one year      (1054)      (1166)          (982)


Provisions for
liabilities and charges        (1744)      (1558)         (1686)
                               _______    _______        _______

Net assets                     18020       17813          17907
                               _______    _______        _______

Share capital and reserves
 Share capital                  1196        1196           1196
 Share premium                  8399        8392           8399
 Capital redemption reserve      218         218            218
 Revaluation reserve            1864        1049           1922
 Profit and loss account        6343        6958           6172
                              _______    _______        _______
Shareholders' funds
 Equity                        18020       17813          17907
                              _______    _______        _______


CONSOLIDATED CASH FLOW STATEMENT
(for the six months ended 30th June 2002)

                         Unaudited six  Unaudited six       Audited year
                          months ended   months ended              ended
                        30th June 2002 30th June 2001 31st December 2001
                                £'000s         £'000s             £'000s

Net cash inflow from
operating activities              1795           2595               5313
                                _______       _______            _______
Returns on investments and
servicing of finance              (191)          (203)              (368)
                                _______       _______            _______

Taxation                          (383)          (142)             (1375)
                                _______       _______            _______

Capital expenditure              (1529)          (920)             (3191)
                                _______       _______            _______

Equity dividends paid            (1197)         (1196)             (1746)
                                _______       _______            _______

Cash (outflow)/inflow
before financing                 (1505)           134              (1367)
                                _______       _______            _______
Financing
Issue of ordinary shares             -              -                  7
Repayment of amounts
borrowed                          (107)           (97)              (201)
Short term borrowings              758           (412)              2103
Long term borrowings               224              -                  -
                               _______        _______            _______

                                   875           (509)              1909
                               _______        _______            _______

(Decrease)/increase in
cash in the period                (630)          (375)               542
                               _______        _______            _______


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                 £'000s         £'000s             £'000s

(Decrease)/increase in cash
in the period                      (630)          (375)               542

Net cash flow from
(increase)/decrease in bank
loans due within one year          (758)           412              (2103)

Net cash flow from decrease
in other debt due within one
year                                107             97                201

Net cash flow from
(increase) in net debt due
in more than one year              (224)             -                  -
                                  _______       _______            _______

Change in net debt resulting
from cash flows                   (1505)           134              (1360)

Currency translation
adjustments                         (19)            34                 (3)
                                  _______       _______            _______


Movement in net debt              (1524)           168              (1363)

Net debt at beginning of
period                            (6333)         (4970)             (4970)
                                 _______        _______            _______

Net debt at end of period         (7857)         (4802)             (6333)
                                 _______        _______            _______


NOTES

1. Basis of Preparation

The  accounting policies and presentation applied to  the
interim figures are consistent with those applied  at  31
December 2001, except for the adoption of FRS19 (see note
5).   The  foregoing do not constitute statutory accounts
within  the  meaning of Section 240 of the Companies  Act
1985.  Accordingly, the comparative figures for the  year
ended  31st  December  2001  are  based  on  the  audited
accounts of the Group, as restated, for that year,  which
have been delivered to the Registrar of Companies and  on
which the auditors gave an unqualified audit opinion  and
did  not contain a statement under section 237(2) or  (4)
of the Companies Act 1985.

2. Segmental Analysis

                Unaudited          Unaudited        Audited
         Six months ended   Six months ended     Year ended
                30th June          30th June  31st December
                     2002               2001           2001
                   £'000s             £'000s         £'000s


Turnover by
Destination

United Kingdom       1682               1811           3342


North America        4943               4899           9726


Continental Europe   7221               6819          11669


Asia                 3034               3511           7284

Central &
South America         296                329            488


Rest of World         448                454            930
                   _______             _______       _______

                    17624              17823          33439
                   _______             _______       _______

Turnover by Market

Domestic &
Industrial
Appliances          10567               9836          19175

Steelmaking          3117               3657           7073

Automotive           2986               3159           5147

Investment             31                269            479
Casting

Engineered            388                659           1100
Ceramics

Other
Industrials           535                243            465
                   _______            _______        _______

                    17624              17823          33439
                   _______            _______        _______


3. Movement in Shareholders' Funds

                              Capital
             Share   Share redemption Revaluation Profit & loss
           capital premium    reserve     reserve       account  Total
            £'000s  £'000s     £'000s      £'000s        £'000s £'000s


Opening
shareholder's
funds         1196    8399        218        1922          6899  18634

Prior year
adjustment       -       -          -           -          (727)  (727)
            _______ _______    _______    _______       _______  _______

At
beginning
of period -
as restated   1196    8399        218        1922          6172  17907

Profit for
the period       -       -          -           -          1295   1295

Interim
dividend         -       -          -           -          (598)  (598)

Currency
translation
adjustment       -       -          -         (22)         (562)  (584)

Transfer
from
revaluation
reserve          -       -          -         (36)           36      -
            _______  _______   _______     _______      _______  _______
At end of
period        1196    8399        218        1864          6343  18020
            _______  _______   _______     _______      _______  _______

4. Dividends

The  dividend charge for the period represents an interim
dividend  of  2.5p  per ordinary 5p  share  and  will  be
payable on 17th October 2002 to those shareholders listed
on the register as at 4th October 2002.

5. Taxation

Taxation  has  been  provided at the estimated  effective
rate for the full year and includes £96,000 in respect of
overseas taxation.

Financial  Reporting Standard 19 - Deferred Taxation  has
been  adopted  in  the current period,  with  comparative
figures being restated to comply with this new standard.

The  profit after tax for the year ended 31 December 2001
has  therefore been reduced by £83,000, with shareholders
funds at that date being reduced by £727,000.

The  profit after tax for the period ended 30  June  2001
has  been  reduced  by £20,000, with  shareholders  funds
being  reduced by £664,000, £644,000 of which  represents
unprovided deferred tax at 31 December 2000.

6. Distribution of interim results

Copies   of   the  interim  report  will  be  posted   to
shareholders  on  Friday  4  October  2002  and  will  be
available from the company's registered office  at  Doxey
Road, Stafford  ST16 1DZ during normal business hours.


Independent Review Report by KPMG Audit Plc
to UCM Group PLC



Introduction

We  have  been  instructed by the company to  review  the
financial information set out above and we have read  the
other  information  contained in the interim  report  and
considered whether it contains any apparent misstatements
or    material   inconsistencies   with   the   financial
information.


Directors' responsibilities

The  interim  report, including the financial information
contained therein, is the responsibility of, and has been
approved   by,   the   directors.   The   directors   are
responsible   for   preparing  the  interim   report   in
accordance  with  the  Listing  Rules  of  the  Financial
Services  Authority  which require  that  the  accounting
policies and presentation applied to the interim  figures
should be consistent with those applied in preparing  the
preceding  annual accounts except where they  are  to  be
changed  in  the next annual accounts in which  case  any
changes, and the reasons for them, are to be disclosed.


Review work performed

We  conducted  our  review  in accordance  with  guidance
contained in Bulletin 1999/4: Review of Interim Financial
Information  issued by the Auditing Practices  Board  for
use in the United Kingdom.  A review consists principally
of  making  enquiries  of group management  and  applying
analytical  procedures to the financial  information  and
underlying  financial data and, based thereon,  assessing
whether  the  accounting policies and  presentation  have
been consistently applied unless otherwise disclosed.   A
review  is  substantially less in  scope  than  an  audit
performed  in  accordance  with  Auditing  Standards  and
therefore  provides a lower level of  assurance  than  an
audit.  Accordingly we do not express an audit opinion on
the financial information.


Review conclusion

On  the  basis  of  our review we are not  aware  of  any
material  modifications  that  should  be  made  to   the
financial  information as presented for  the  six  months
ended 30th June 2002.







KPMG Audit Plc
Chartered Accountants
Stoke on Trent                          25 September 2002



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