NEW BUSINESS DEVELOPMENT AND EFFICIENCY GAINS DRIVE CONTINUED RECOVERY

Umeco plc, Europe`s leading provider of value-added distribution services to the aerospace and defence industries, announces its preliminary results for the year ended 31 March 2003.

Turnover down 5% to £181.1 million (2002: £191.0 million), comparing favourably to 25% overall fall in aerospace market;

Improving trend, with underlying H2 turnover ahead of H1 and prior year H2, the period immediately following the 9/11 terrorist actions

Profit before tax* ahead at £10.2 million (2002: £10.1 million), driven by actions on gross margins and cost base;

H2 profit before tax 15% ahead of H1, and 22% ahead of prior year H2

Continued strong cash generation, reducing net debt by £10.1million or 33%;

Earnings per share* of 27.7 pence (2002: 28.8 pence);

Reported earnings per share 22% higher at 20.9 pence (2002: 17.2 pence)

Recommended final dividend of 8.5 pence per share, resulting in increased total dividend for the year of 12.5 pence (2002: 12.0 pence);

Demand for Group's outsourcing services remains at a high level as aerospace customers seek to improve operating performance;

(* before goodwill amortisation and exceptional items)


Clive Snowdon, Chief Executive of Umeco plc, commented:

"These results, and in particular the improving half year trends that underlie them, reflect the success of our intense focus on new business development and on maximising efficiencies across the Group.

"Whilst conditions in our core aerospace markets will remain tough, demand for Umeco's outsourcing services remains robust as our customers pursue opportunities to improve their own operating performance. Our international presence and financial strength are clear advantages in our pursuit of the increasingly large-scale, sophisticated contracts now being bid.

"We are therefore confident that our strategic positioning and the actions we continue to take will enhance our medium and long-term prospects and financial performance".