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UCM Group PLC (UCM)

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Thursday 03 April, 2003

UCM Group PLC

Final Results

UCM Group PLC
03 April 2003



Embargoed until 07.00                              3 April 2003

                         UCM Group PLC

    Preliminary Results for the Year Ended 31 December 2002


UCM,  the leading provider of speciality fused minerals, today
announces  its  preliminary results  for  the  year  ended  31
December 2002.

Financial Highlights

                                                Year            Year
                                               ended           ended
£ Millions                                  December        December
                                                2002            2001

Turnover                                        33.7            33.4
Profit before tax - before exceptional items     2.8             3.3
Earnings per share - before exceptional items    8.1p            9.9p
Total dividend                                   7.5p            7.3p


Key Highlights

- Major capital expenditure programme virtually complete - a
  record £4.6m invested

- Upturn showing in magnesia and advanced ceramic material
  sales but a disappointing year for standard zirconia

- Magnesia operations in US concentrated in Alabama

- Joint venture in China came on stream towards end of the year

- Zirconia production and processing to be concentrated in
  Tennessee


John Gordon, Chairman, said:

'The highlight of 2002 has been the Group's capital investment
in  its future, to focus production of our three core products
at dedicated, cost effective plants.

'In  the  current  world environment, the trading  outlook  is
unusually  uncertain  but  it will  be  disappointing  if  the
improvements made in 2002 do not enable the Group to achieve a
satisfactory performance in 2003.'


                           - Ends -



Enquiries:
UCM Group PLC                        (On the day) 020 7067 0700
John Gordon, Chairman                 (Thereafter) 01785 223122
Bob Hughes, Chief Executive
Melvyn Fookes, Group Finance Director

Weber Shandwick Square Mile                       020 7067 0700
Terry Garrett or Alex White or Rachel Taylor

Embargoed until 07.00                              3 April 2003

                         UCM Group PLC

    Preliminary Results for the Year Ended 31 December 2002


UCM,  the leading provider of speciality fused minerals, today
announces  its  preliminary results  for  the  year  ended  31
December 2002.

CHAIRMAN'S STATEMENT

The highlight of the past year was the virtual completion of a
major  capital expenditure programme as the Group  invested  a
record  amount to achieve its strategic repositioning.   World
markets,  however, remain mixed with considerable  competition
in  some  areas  although there has been a modest  improvement
from the depressed level of the second half of 2001.

Pre-tax  profits for the year amounted to £2.8 million  before
exceptional items (2001: £3.3 million) on a turnover of  £33.7
million  (2001: £33.4 million).  Earnings per  share  for  the
year were 8.1p before exceptionals, compared with 9.9p in  the
previous year.

Dividends

The  Board is recommending an unchanged final dividend of 5.0p
per  share,  which makes a total for the year of  7.5p  (2001:
7.3p), an increase of 2.7 per cent.

Trading

Sales of electrical grade magnesia powders in both Europe  and
North  America improved during the year and the Group's United
Kingdom  magnesia  operation,  based  in  Hull,  was  able  to
increase  turnover, although profits were  restrained  by  the
strength   of  sterling.   In  the  United  States,   magnesia
operations have  now  been concentrated entirely at the Muscle
Shoals  Minerals Inc. plant in Alabama, where good sales  into
the  domestic North American market were offset by a  fall  in
Asia.  The joint venture in China with Yingkou Tianhu Magnesia
Industries Co. Limited came on stream towards the end  of  the
year  and  it  is  hoped that this will enable  the  Group  to
recover market share in Asia during 2003.

Sales of zirconia powders to the steel making sector were down
on  the  previous year and market share has been lost  in  the
face  of intense competition from producers in weaker currency
areas.    The   concentration  of  zirconia   production   and
processing  at  Greeneville, Tennessee,  and  the  forthcoming
closure  of  standard  zirconia  processing  at  Stafford,  in
respect  of  which  exceptional costs of  £199,000  have  been
incurred,  will reduce costs and place the Group in  a  better
position to meet this competition.

Advanced ceramic materials have had a good year with sales  up
by  14 per cent.  Demand from the automotive sector is largely
responsible for this, with sales of material for use in oxygen
sensors recovering and sales of micronised monoclinic zirconia
for use in brake pads continuing to improve.

Staff

As  always, the thanks of shareholders and directors go to all
the  staff,  who in many parts of the Group have had  to  cope
with  major organisational change brought about by the capital
expenditure programme implemented during the year.

Outlook

Investments  made  in  the business  during  the  year  should
improve  efficiency and reduce unit costs while a more  normal
capital  expenditure  programme in 2003  should  increase  the
Group's free cash flow.  In the current world environment, the
trading  outlook  is  unusually  uncertain  but  it  will   be
disappointing if the improvements made in 2002 do  not  enable
the Group to achieve a satisfactory performance in 2003.

2 April 2003

                           - Ends -



Enquiries:
UCM Group PLC                        (On the day) 020 7067 0700
John Gordon, Chairman                 (Thereafter) 01785 223122
Bob Hughes, Chief Executive
Melvyn Fookes, Group Finance Director

Weber Shandwick Square Mile                       020 7067 0700
Terry Garrett or Alex White or Rachel Taylor





UCM Group PLC
Consolidated Profit and Loss Account
for the year ended 31 December 2002


                                           Continuing       Continuing
                                           Operations       Operations
                                                 2002             2001
                                                           As restated
                                                 £000             £000

Turnover                                        33713            33439

Cost of sales
(including exceptional costs of £199,000)      (25741)          (24756)
                                               _______          _______

Gross profit                                     7972             8683

Distribution costs                               (275)            (282)

Administrative expenses                         (4644)           (4689)
                                               _______          _______

Profit on ordinary activities before interest    3053             3712

Interest payable and similar charges             (435)            (375)
                                               _______          _______
Profit on ordinary activities before taxation    2618             3337

Taxation on ordinary activities                  (817)            (958)
                                               _______          _______
Profit for the financial year                    1801             2379

Dividends paid and proposed                     (1795)           (1747)
                                               _______          _______

Retained profit for the financial year              6              632

                                               _______          _______
Earnings per ordinary share

Basic and diluted                                 7.5p             9.9p
                                               _______          _______
Before exceptional items

Basic and diluted                                 8.1p             9.9p
                                               _______          _______


UCM Group PLC
Consolidated Balance Sheet
as at 31 December 2002


                                      2002                2001
                                                       As          As
                                                 restated    restated
                                 £000      £000      £000        £000
Fixed assets

Intangible assets                           404                   136
Tangible assets                           17244                 15449
                                         _______               _______

                                          17648                 15585

Current assets

Stocks                           7768                7949
Debtors                          6942                7537
Cash at bank and in hand          145                1179
                                _______            _______

                                14855               16665


Creditors: amounts falling
due within one year            (12882)             (11675)

Net current assets                         1973                  4990
                                         _______               _______

Total assets less current
liabilities                               19621                 20575

Creditors: amounts falling
due after more than one year              (1172)                 (982)

Provisions for liabilities
and charges                               (1767)                (1686)
                                         _______               _______

Net assets                                16682                 17907
                                         _______               _______

Capital and reserves

Called up share capital                    1196                  1196
Share premium account                      8399                  8399
Capital redemption reserve                  218                   218
Revaluation reserve                        1802                  1922
Profit and loss account                    5067                  6172
                                         _______               _______

Shareholders' funds - Equity              16682                 17907
                                         _______               _______






UCM Group PLC
Consolidated Cash Flow Statement
for the year ended 31 December 2002


                                       2002                   2001
                                  £000       £000       £000        £000

Net cash inflow from
operating activities                         4784                   5313

Returns on investments and
servicing of finance

Interest paid                                (425)                  (368)

Taxation

UK corporation tax (paid)         (670)                (1185)

Overseas tax (paid)               (130)                 (190)
                                 _______               _______

                                             (800)                 (1375)


Capital expenditure

Payments for
intangible fixed assets           (224)                    -

Payments for tangible
fixed assets                     (4397)                (3191)
                                _______               _______

                                            (4621)                 (3191)

Equity dividends paid                       (1795)                 (1746)
                                            _______               _______

Cash (outflow) before financing             (2857)                 (1367)

Financing

Issue of ordinary share capital      -                     7

New loans                          532                     -

Repayment of amounts borrowed     (231)                 (201)

Short term borrowings             1477                  2103
                                 _______               _______

Net cash inflow/ from financing              1778                   1909
                                            _______               _______
(Decrease)/increase in cash in
 the year                                   (1079)                   542
                                            _______               _______




UCM Group PLC
Segmental Information


                                       Continuing    Continuing
                                       Operations    Operations
                                             2002          2001
                                                    As restated
                                             £000          £000

Turnover can be analysed as follows:

by destination

United Kingdom                               2877          3342
North America                                9852          9726
Continental Europe                          13237         11669
Central and South America                     560           488
Asia                                         6311          7284
Rest of World                                 876           930
                                           _______      _______

                                            33713         33439
                                           _______      _______

by origin

United Kingdom                              19208         19121
North America                               14505         14318
                                           _______      _______

                                            33713         33439
                                           _______      _______

by market

Domestic & Industrial Appliances            19759         19175
Steelmaking                                  5894          7073
Automotive                                   5830          5147
Investment Casting                            (61)          479
Engineered Ceramics                           957          1100
Other Industrials                            1334           465
                                           _______      _______

                                            33713         33439
                                           _______      _______

Net assets can be analysed as follows:


by origin

United Kingdom                              15358         16664
North America                               13739         10964
                                           _______      _______

                                            29097         27628

Non Operating Liabilities                  (12415)        (9721)
                                           _______      _______

                                            16682         17907
                                           _______      _______


by market

Domestic & Industrial Appliances            15501         15315
Steelmaking                                  4363          5983
Automotive                                   6885          4744
Investment Casting                             25           550
Engineered Ceramics                           845           591
Other Industrials                            1478           445
                                           _______      _______

                                            29097         27628

Non Operating Liabilities                  (12415)        (9721)
                                           _______      _______

                                            16682         17907
                                           _______      _______


Non   operating  liabilities  include  net  cash/(borrowings),
taxation balances and dividends payable.


Results

In  the opinion of the Directors the disclosure of results  by
market  and geographical origin would be seriously prejudicial
to the interests of the Group.

UCM Group PLC
NOTES:


1.   The   financial  information  set  out  above  does   not
     constitute the Company's statutory accounts for the years
     ended  31  December 2002 and 2001 within the  meaning  of
     section 240 of the Companies Act 1985 but is derived from
     those  accounts.  Statutory accounts for 2001  have  been
     delivered to the Registrar of Companies whereas those for
     2002  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) or (3)  of  the
     Companies Act 1985.

2.   Earnings  per ordinary share is calculated with reference
     to  the  profit attributable to ordinary shareholders  of
     £1,801,000  (2001: £2,379,000) and the  weighted  average
     number  of  ordinary shares in issue during the  year  of
     23,929,307  (2001: 23,924,263).  There is no dilution  in
     the  earnings per share in both the reporting period  and
     the comparative year of 2001.

3.   If  approved a final dividend of 5.0p (net) per  ordinary
     share  will  be paid on 29th May 2003 to shareholders  on
     the register at 2nd May 2003.

4.   The annual general meeting will be held on 22nd May 2003,
     at  the  offices of Hammonds, Rutland House,  148  Edmund
     Street, Birmingham B3 2JR.

5.   Copies  of the 2002 Report and Accounts will be  sent  to
     shareholders  in  due  course.  Further  copies  will  be
     available from the Company's registered office  at  Doxey
     Road, Stafford ST16 1DZ.




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