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Tuesday 2nd September 2003

BBA GROUP PLC

INTERIM RESULTS FOR THE HALF-YEAR ENDED 30th JUNE 2003

Interim results

  • Sales from continuing operations down 4 per cent to £656m (2002: £683m); up 2% at constant currency (2002: £642m).
  • Normalised Profit before Tax * £61.2m (2002: £69.5m - £65.8m at constant currency).
  • Group Profit before Tax up 78% at £44.9m (2002: £25.2m).
  • Earnings per share* from continuing operations 9.2p (2002: 10.3p - 9.7p at constant currency).
  • Interim dividend increased by 3% to 3.2p (2002: 3.1p).
  • Interest cover 7.4x (2002: 6.7x).
  • Share buy-back of 21.5m shares at a cost of £45m.
  • Aviation: impacted by Middle East war. H2 improvement anticipated.
  • Materials Technology: underlying sales growth of 3 per cent. Margins affected by higher raw material costs. H2 improvement anticipated.
  • Positive free cash flow of £28.0m.
  • Acquisitions of £31m year to date in Aviation Division.
  • Acquisition of Industrial nonwovens producer, Tecnofibra, in Europe for £22m will complete before year end.

* Before goodwill amortisation and all exceptional items.

Commenting on the results, Roy McGlone, BBA Group Chief Executive, said:

"The trading environment for the first half has been challenging due, in particular, to the direct and indirect impacts of the war in the Middle East, significantly higher raw material costs and the weakening of the dollar against sterling. Accordingly pre-tax profit (before goodwill amortisation and all exceptional items) for the first six months of the year was £61.2m, 7 per cent lower than the equivalent period last year on a constant currency basis. We have continued to generate positive free cash flow, invested £25m acquiring an Aviation business and £45m in the purchase of 21.5m of our own shares. We anticipate useful progress in the second half as the benefits of lower input costs, new contracts, productivity gains and recent acquisitions come through."

Enquiries

Roy McGlone, Chief Executive, BBA Group, (020) 7514 3999
Andrew Wood, Finance Director

Mike Smith, Brunswick Group, (020) 7404 5959
Catherine Bertwistle

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