As indicated in the Business Update released on 21 September, Umeco plc ("Umeco" or "the Group"), a leading international provider of value-added distribution services to the aerospace and defence industry, is today providing a more detailed update on business conditions following the events of 11 September, together with a statement of its estimated results for the six months ended 30 September 2001.

Estimated unaudited results for the six months ended 30 September 2001

The Board estimates that turnover in the period amounted to £99.6 million (2000: £72.9 million). Profit before interest, tax and goodwill amortisation is estimated at £7.1 million (2000: £5.5 million), and interest charges in the period at £1.4 million (2000: £0.8 million). Accordingly, profit before tax and goodwill amortisation is estimated to have amounted to £5.7 million (2000: £4.7 million). Earnings per share excluding goodwill amortisation are estimated at 17.0p (2000: 16.1p). Goodwill amortisation in the period is estimated at £1.1 million (2000: £0.4 million).

Abscoa Industries, a leading North American provider of inventory management and fastener distribution programmes acquired by Umeco in June of this year, has traded in line with the Board`s expectations since acquisition. It is estimated to have contributed sales of £9.4 million and operating profit of £1.0 million in the period ended 30 September 2001.

Prior to 11 September, some softening had been experienced in late Summer in the Group's Components Division, where demand from Compstock's non-aerospace customers had slowed. In addition, in the Chemicals Division, weakening demand from after market customers had impacted Aeropia's performance and a change in the distribution arrangements for structural foam products in Richmond Aircraft Products had reduced margins on those products.

The Business Update released on 21 September indicated that some immediate impact on certain of the Group's operations was expected in those businesses that support airline operators and the after market. The Group did experience significantly lower sales in those businesses post 11 September as airlines reduced their levels of activity and ongoing capacity. In addition, considerable business disruption occurred due to delayed shipments from suppliers and difficulties in making deliveries to certain customers. The estimated loss of operating profit during September due to these factors is £0.25 million.

The Group intends to release its Interim Results on 6 November 2001.