INTERIM RESULTS
September 2006
Financial highlights
6 months to June 2006
£ million
Group sales
Operating profit before exceptional items
2006
1st Half
2005
1st Half
75.2
74.6
9.0
10.7
Operating margin
12.0%
14.3%
Exceptional items
(1.0)
6.1
Net interest
(0.9)
(0.9)
Profit before tax
7.1
15.9
Earnings per share
3.1p
7.0p
Earnings per share before exceptional items
3.6p
4.3p
1.425p
1.375p
Dividend per share
Key features
 Subdued UK and US markets
 Strong volume growth in Cutisin brand
 Impact of strong Czech Crown
 Higher input costs
 Headcount reduction in Scotland
 Cutisin expansion nearing completion
Sales analysis 2006
Sales change vs 2005
1st Half
Volume
0.1%
Price / Mix
(1.4)%
Operations
(1.3)%
Foreign Exchange
2.2%
Total
0.9%
Regional sales by destination 2006
Change vs 2005
1st Half
2006
£m
Europe
44.6
Volume Price / Mix
2.4%
Operations Exchange
(2.9)%
 Pressure in the UK market
 Strong performance in Continental Europe
 Adverse impact of Czech Crown
(0.5)%
2.5%
Total
2.0%
Regional sales by destination 2006
Change vs 2005
1st Half
2006
£m
Volume Price / Mix
Americas
15.6
(5.3)%
0.8%
 Lower volume in domestic US market
 Recovery in Latin America
 Impact of stronger US$
Operations Exchange
(4.5)%
Total
3.9% (0.6)%
Regional sales by destination 2006
Change vs 2005
1st Half
2006
£m
Volume Price / Mix
Asia / Pacific
15.0
(0.9)%
0.5%
Operations Exchange
(0.4)%
 Solid performance in Australia / New Zealand
 Continued growth in Japan
 Opportunities in China
Total
(0.4)% (0.8)%
Regional sales by destination 2006
Change vs 2005
1st Half
2006
£m
Europe
44.6
2.4%
(2.9)%
(0.5)%
2.5%
2.0%
Americas
15.6
(5.3)%
0.8%
(4.5)%
3.9%
(0.6)%
Asia / Pacific
15.0
(0.9)%
0.5%
(0.4)%
(0.4)% (0.8)%
Total
75.2
0.1%
(1.4)%
(1.3)%
2.2%
Volume
Price/Mix
Operations Exchange
Total
0.9%
Profit and loss 2006
6 months to June 2006
£ million
Group sales
Operating profit before exceptional items
2006
1st Half
2005
1st Half
75.2
74.6
9.0
10.7
Operating margin
12.0%
14.3%
Exceptional items
(1.0)
6.1
Net interest
(0.9)
(0.9)
Profit before tax
7.1
15.9
Tax
2.0
4.5
Profit for the period
5.1
11.4
Earnings and dividend 2006
6 months to June 2006
2006
1st Half
2005
1st Half
Earnings per ordinary share
 Basic
3.1p
7.0p
 Diluted
3.1p
7.0p
 Before exceptional items
3.6p
4.3p
1.425p
1.375p
Dividend per share
Balance sheet
£ million
June
2006
December
2005
Non-current assets
116.5
119.1
Net current assets
31.9
27.9
(75.6)
(85.6)
72.8
61.4
Share capital and reserves
70.9
71.4
Retained earnings/(losses)
1.9
(10.0)
72.8
61.4
(29.4)
(17.7)
Non-current liabilities
Net debt
Gearing
40.4%
28.8%
Cash flow
6 months to June 2006
£ million
2006
1st Half
2005
1st Half
6.5
10.6
Net interest paid
(0.9)
(0.9)
Tax paid
(3.1)
(3.0)
Capital expenditure
(9.6)
(5.1)
0.0
7.1
(4.9)
(4.4)
(12.0)
4.3
Issue of share capital
0.0
0.1
Exchange
0.3
0.5
(Increase) / decrease in net debt
(11.7)
4.9
Interest cover*
10.0
12.0
Net cash inflow from operating activities
Sale of land
Equity dividend paid
Net cash flow before financing
*calculated on operating profits before exceptional items
Outlook
 Thin-film business
 Current trading
 Increased Cutisin capacity
 Broadening of product range