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ABG Cencora Inc

220.90
2.50 (1.14%)
13:26:23 - Realtime Data
Share Name Share Symbol Market Type
Cencora Inc TG:ABG Tradegate Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  2.50 1.14% 220.90 216.50 220.80 221.20 220.90 221.20 47 13:26:23

Interim Results

09/09/2003 8:04am

UK Regulatory


RNS Number:5355P
Abbot Group PLC
09 September 2003


                                                                9 September 2003

             A Solid Foundation for Continued Growth and Prosperity

The Abbot Group is the largest offshore platform drilling contractor in the UK
sector of the North Sea, one of the largest international land drilling
operators outside North America, and a world leader in drilling rig design,
construction and operation.

Abbot Group plc ("Abbot"), announces interim results for the 6 months ended 30
June 2003 as follows:

* Operating profit, excluding goodwill amortisation and exceptional items, 
  #15.1 million (2002: #13.7 million)                                Up 10%

* Net interest payable #1.6 million (2002: #4.3 million)           Down 62%

* Profit before tax, excluding goodwill amortisation and exceptional items,
  #13.4 million (2002: #9.8 million)                                 Up 37%

* Adjusted earnings per share, excluding goodwill amortisation, exceptional
  items and discontinued operations, 5.2p (2002: 3.8p)               Up 37%

* Interim dividend 1.4p per share (2002: 1.25p)                      Up 12%

* Net cash flow from operating activities #16.5 million
 (2002: #9.9 million)                                                Up 67%

* Net debt #36.6 million (2002: #95.7 million) giving gearing of 25%

Commenting on the results Alasdair Locke, Executive Chairman, said: "Overall the
Group's performance is highly satisfactory and in my view confirms and
reinforces our strategy of developing long term production related contracts in
our targeted markets of the Middle East, Caspian, North and West Africa, Russia,
the UK and mainland Europe.

The recent contract wins combined with our existing operations gives us forward
visibility of revenues for the next several years, which provides a solid
foundation for the continued growth and prosperity of the Group.

In addition we are well placed to compete for further offshore contracts
especially in Russia, the Caspian and West Africa. Similarly, we are pursuing
opportunities onshore in Southern Russia, Western Siberia and also Libya which
is particularly promising now that there are clear indications that sanctions
may be lifted soon.

Current market conditions remain favourable for the Group particularly as the
major oil companies have a need to explore new areas and develop existing
reserves.

These factors combined with the strength of our current portfolio confirm my
stated view that the current year will show a continuing improvement in our
results.

For Further Information:
Alasdair Locke                    Peter Willetts
Executive Chairman                Justin Griffiths
Abbot Group plc                   Tavistock Communications Limited
Tel: 020 7920 3150                Tel: 020 7920 3150

Chairman's Interim Statement


Overview

The first half of 2003 has seen steady progress in our core drilling business,
with improved utilisation in our land rigs, sustained operations offshore, and
very significant contract wins valued at US $730 million in a number of our key
core markets which provide a high level of revenue visibility for the future.

The Group is now clearly focussed on its drilling and drilling related
businesses following the disposal of OIS to Oceaneering International Services
Ltd which was completed on 16 January 2003, and the subsequent sale of the
Surveys Division, which had been excluded from the original OIS transaction, and
which was concluded in July.

The Group continues to demonstrate a consistently good and improving safety
performance.

Overall the Group's performance is highly satisfactory particularly so when
looked at in the context of fluctuating foreign exchange rates, and the
uncertainties created by the conflict in Iraq.

In my view this confirms and reinforces our strategy of developing long term
production related contracts in our targeted markets of the Middle East,
Caspian, North and West Africa, Russia, the UK and mainland Europe.

I am also pleased to welcome to the Board Robbie Duncan, who was appointed on 1
August 2003 as Non Executive Director, and subsequently to the position of
chairman of the audit committee. Robbie will bring a wealth of experience not
only from his previous position at First Group but also from a wide ranging
career in Aberdeen.

Results

The results for the 6 months ended 30 June 2003 are as follows:

  * Operating profit, excluding goodwill amortisation
    and exceptional items, #15.1 million (2002: #13.7 million)         Up 10%
    Operating profit #11.8 million (2002: #11.1 million)

  * Net interest payable #1.6 million (2002: #4.3 million)           Down 62%

  * Profit before tax, excluding goodwill amortisation
    and exceptional items, #13.4 million (2002: #9.8 million)          Up 37%
    Profit before tax #10.1 million (2002: #7.3 million)

  * Adjusted earnings per share, excluding goodwill
    amortisation, exceptional items and discontinued
    operations, 5.2p (2002: 3.8p)                                      Up 37%
    Basic earnings per share 3.6p (2002: 2.6p)

  * Net cash flow from operating activities #16.5 million
   (2002: #9.9 million)                                                Up 67%

  * Net debt #36.6 million (2002: #95.7 million) giving gearing of 25%

Dividend

In light of these results and the confidence with which the Directors view the
future, the Board has declared an interim dividend of 1.4p (2002: 1.25p) per
ordinary share, an increase of 12%, which will be paid on 7 November 2003 to
eligible shareholders on the register at 10 October 2003.

Operations


Land Drilling

We now have some 30 land rigs under contract, an increase of 10% from a year
ago, and we are achieving an average utilisation of 80%. This very high
utilisation factor has been brought about by contract wins for a number of rigs.

In Europe, work on geothermal wells in Denmark, Sweden and Germany was secured,
as were two wells for Enagas in Spain. A rig was released by Shell in the
Netherlands early in the year but we have been successful in contracting the
unit to Exxon Mobil in France.

A major milestone was reached in January 2003 with the spudding of the first
well in Western Siberia for Sibneft. This was two months ahead of schedule and
achieved during the coldest part of the winter.

In the Middle East and Africa, further progress was made in a number of
different markets. In Oman, one of our existing rigs had its contract renewed
for a four year period, and two further rigs were put to work in July following
upgrading in Jebel Ali. These latter two rigs were moved to the Middle East
following the closure of our Algerian operation. These contracts brought the
total number of KCA Deutag rigs in Oman to eight with the new and revised
contracts having a value of some US $56 million.

In Libya, Wintershall awarded the company a one year contract worth US $7
million to augment the continuing operation of the three land rigs for Waha and
the contract for Agip, which was also extended during the period.

Nigerian operations continued albeit with the early release of a rig by Shell.
We have avoided, to a large degree, the labour unrest experienced by some of the
offshore operators in Nigeria, and our remaining operations for Shell, Agip and
Panocean continue to perform satisfactorily. There are good prospects for
further work for the released rig in the country.

In Iran, KCA Deutag is contracted on four land rigs and manages two jack-ups in
the Persian Gulf. Technical and logistical difficulties in respect of two of the
land rigs have resulted in significantly lower returns for these units. Overall
our activities in Iran remain profitable, albeit at a level below our normal
operating margins. Whilst some issues remain in respect to the construction of
these two rigs, we are confident that we have made sufficient provision in
respect of these matters.

Iran remains, in the long term, an attractive international market and,
therefore, we remain committed to building on our strong business presence
there.

Our rig situated on Agip/KCO's artificial Island in Kazakhstan continues to
operate satisfactorily. Operations continue in Brunei with one rig, and in
Pakistan where three rigs continue to operate for BP (2) and Petronas (l). Shell
released one rig in Thailand following the completion of its current drilling
programme. We anticipate further work for the rig in that country.

Offshore Drilling

Offshore operations in the North Sea and Azerbaijan continued at a highly
satisfactory level. A key element for North Sea Operations is safety
performance, and KCA Deutag has performed beyond industry norms in this regard.
When we took over the BP operations at the time of the Deutag acquisition in
2001, performance in this area was far from satisfactory. However, with
extensive management effort, this operation is now an exemplar for others,
achieving zero injurious incidents during the half year.

During the period under review, the North Sea saw further change in our client
base. Apache Corporation acquired the Forties Field from BP, which was another
significant transition of ownership in the same mould as Talisman's and CNR's
entry to the North Sea. As the major production drilling contractor on the UKCS,
we view the entry of the independents to the North Sea as a positive and very
necessary new phase. We believe that we will see the benefits of increased
investment in production drilling activity in both the short and medium terms.
The breadth of our operations leaves us uniquely placed to meet the challenges
of the maturing North Sea, both in terms of cost reduction and managing
intermittent operations as well as associated challenges of HSE performance and
personnel retention. We are already engaged in a number of innovative dialogues
with our clients regarding their requirements for drilling and well
intervention.

The offshore division also had a number of contracts renewed or extended
including BP and Chevron Texaco, the latter being part of a competitive tender
exercise.

The long term investment which the Group has made in the Caspian area was
rewarded in the first half of 2003 with the award of the Central Azeri, Shah
Deniz, and East and West Azeri Operations contracts by BP on behalf of
Azerbaijan International Operating Company ("AIOC") in Azerbaijan. These
contract wins, valued at US $300 million, provide the Group with a series of
operational start-ups commencing in 2004 through to 2006. This presents the
Group with significant forward visibility of revenues through the primary
contract period to 2010.

The investment in the establishment of the Houston office also bore fruit with
the company being awarded a design build and operate contract from
Chevron-Texaco for the Benguela Belize Field Development in Angola valued at US
$120 million. This office is also the focus for engineering work for Exxon
Mobil's Sakhalin I Project in the Russian Far East.

The company also recommenced operations on the Molikpaq submersible platform
operated by a subsidiary of Shell in Sakhalin island, which is in addition to
Design Engineering Study work being carried out in London, relating to a further
two platforms. This was a precursor to a major contract award which we announced
last week, valued at US $250 million over seven years, and will see operations
on two new platforms commence in 2005 and 2006.

The offshore division increased its prospects of further work by continuing to
carry out engineering work on Phase III for AIOC in Azerbaijan, as well as a
number of other projects which could provide valuable opportunities for further
drilling contracts.

Engineering

The engineering function, which acts in support of our principal operations,
performed at higher activity levels than last year with the increase largely
relating to the Azerbaijan contract wins, and with improved margins.

The Group's Bentec subsidiary has experienced a variable first half with the
level of orders initially somewhat lower than anticipated. However, there has
been some pick up towards the end of the period which should result in an
improved performance in the second half. As previously reported in March 2003 a
major restructuring is underway at Bentec which has, regrettably, resulted in
some 50 redundancies. As a result of this restructuring the business is now
focussed on marketing and the manufacture of higher value products, with a
significant level of lower value activities being outsourced, thereby creating
an improving performance and a centre of excellence in Bad Bentheim. In this
regard, progress has been made in penetrating the US market for electro
mechanical products and also the setting up of a more general facility in
Kazakhstan, which should provide significant benefits for the future.

Outlook

The recent contract wins combined with our existing operations gives us forward
visibility of revenues for the next several years, which provides a solid
foundation for the continued growth and prosperity of the Group.

In addition we are well placed to compete for further offshore contracts
especially in Russia, the Caspian and West Africa. Similarly, we are pursuing
opportunities onshore in Southern Russia, Western Siberia and also Libya which
is particularly promising now that there are clear indications that sanctions
may be lifted soon.

Current market conditions remain favourable for the Group particularly as the
major oil companies have a need to explore new areas and develop existing
reserves.

These factors combined with the strength of our current portfolio confirm my
stated view that the current year will show a continuing improvement in our
results.

Alasdair Locke
Executive Chairman
9 September 2003



Consolidated Profit and Loss Account for the 6 months ended 30 June 2003

                  Note  Before goodwill        Goodwill
                           amortisation    amortisation
                        and exceptional and exceptional
                                  items           items   Total result   Total result    Total result
                              Unaudited       Unaudited      Unaudited      Unaudited         Audited
                            6 months to     6 months to    6 months to    6 months to    12 months to
                           30 June 2003    30 June 2003   30 June 2003   30 June 2002     31 Dec 2002
                                   #000            #000           #000           #000            #000
-------------------------------------------------------------------------------------------------------
Group turnover
Continuing
operations                      186,419               -        186,419        182,974         379,159
Discontinued
operations                            -               -              -         29,069          57,926
-------------------------------------------------------------------------------------------------------
                      2         186,419               -        186,419        212,043         437,085
Cost of sales                  (152,669)              -       (152,669)      (179,330)       (370,521)
-------------------------------------------------------------------------------------------------------
Gross profit                     33,750               -         33,750         32,713          66,564

Operating
expenses
- excluding
exceptionals                    (18,681)         (1,799)       (20,480)       (20,459)        (39,226)
- exceptional
items                 2               -          (1,467)        (1,467)        (1,143)         (2,545)
-------------------------------------------------------------------------------------------------------
Group
operating
profit                2          15,069          (3,266)        11,803         11,111          24,793
                                 ----------------------------------------------------------------------
Continuing
operations                       15,069          (3,266)        11,803         11,165          25,959
Discontinued
operations                            -               -              -            (54)         (1,166)
                                 ----------------------------------------------------------------------

Share of operating
profit in
- joint
venture
(discontinued
operations)                           -               -              -            492             115
- associates
(continuing
operations)                         (59)              -            (59)           (24)             87
-------------------------------------------------------------------------------------------------------
                                 15,010          (3,266)        11,744         11,579          24,995

Profit on sale
of operations
(discontinued
operations)                           -               -              -              -          46,074
Provision for
loss on
impending sale
of business
(discontinued
operations)                           -               -              -              -          (7,500)
Provision for
loss on
termination of
operations
(discontinued
operations)                           -               -              -              -          (2,250)
-------------------------------------------------------------------------------------------------------
                                 15,010          (3,266)        11,744         11,579          61,319

Net interest
payable                          (1,650)              -         (1,650)        (4,323)        (11,088)
-------------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
before
taxation                         13,360          (3,266)        10,094          7,256          50,231

Taxation on
profit on
ordinary
activities            3          (4,275)            469         (3,806)        (2,632)         (4,960)
-------------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
after taxation                    9,085          (2,797)         6,288          4,624          45,271
Dividends paid
and proposed          4          (2,462)              -         (2,462)        (2,198)         (7,033)
-------------------------------------------------------------------------------------------------------

Retained
profit for the
period                6           6,623          (2,797)         3,826          2,426          38,238
=======================================================================================================

Earnings per
ordinary share

Basic                 5                                            3.6p           2.6p           25.8p
Diluted               5                                            3.6p           2.6p           25.8p
Adjusted,
basic -
excluding
goodwill
amortisation,
exceptional
items and
discontinued
operations            5                                            5.2p           3.8p            9.7p


Statement of Group Total Recognised Gains and Losses 30 June 2003

                                              Unaudited      Unaudited         Audited
                                            6 months to    6 months to    12 months to
                                           30 June 2003   30 June 2002     31 Dec 2002
                                                   #000           #000            #000
Profit for the
period                                            6,288          4,624          45,271
Exchange
adjustments
offset in
reserves                                          8,493          7,838           6,022
Tax on exchange
adjustments
offset in
reserves                                              -              -            (363)
----------------------------------------------------------------------------------------
Total recognised
gains for the
period                                           14,781         12,462          50,930
Prior period
adjustment                                            -         (2,385)         (2,385)
----------------------------------------------------------------------------------------

Total recognised
gains and losses
since last annual
report                                           14,781         10,077          48,545
========================================================================================


Consolidated Balance Sheet 30 June 2003

                               Note   Unaudited        Unaudited       Audited
                                        30 June          30 June        31 Dec
                                           2003             2002          2002
                                             #000           #000          #000
--------------------------------------------------------------------------------
Fixed assets

Goodwill                                   66,915         50,382        64,142
Intangible assets                               -            472             -
Tangible assets                           137,085        144,507       140,992
Investments                                   896          6,232           603
--------------------------------------------------------------------------------
                                          204,896        201,593       205,737
--------------------------------------------------------------------------------
Current assets

Investment held for resale                  5,414          5,290         5,585
Stocks                                     19,848         17,764        18,039
Debtors                                   113,959        107,965       123,915
Cash at bank and in hand                   10,253          7,731         9,706
--------------------------------------------------------------------------------
                                          149,474        138,750       157,245
Creditors:
Amounts falling due within one
year                                      (93,738)      (103,287)     (113,915)
--------------------------------------------------------------------------------
Net current assets                         55,736         35,463        43,330
--------------------------------------------------------------------------------

Total assets less current
liabilities                               260,632        237,056       249,067

Creditors:
Amounts falling due after more
than one year                             (55,071)      (100,967)      (59,066)
Provision for liabilities and
charges                                   (57,280)       (37,950)      (58,256)
--------------------------------------------------------------------------------

Net assets                                148,281         98,139       131,745
================================================================================

Capital and reserves

Called-up share capital           6        26,375         26,375        26,375
Share premium account             6        90,123         90,123        90,123
Profit and loss account           6        30,907        (19,359)       14,274
--------------------------------------------------------------------------------
Total equity shareholders'
funds                                     147,405         97,139       130,772

Equity minority interests                     876          1,000           973
--------------------------------------------------------------------------------
                                          148,281         98,139       131,745
================================================================================


Consolidated Cash Flow Statement for the 6 months ended 30 June 2003

Reconciliation of operating profit to          Unaudited   Unaudited   Audited
operating cash flows
                                                6 months    6 months 12 months
                                                      to          to        to
                                                 30 June     30 June    31 Dec
                                                    2003        2002      2002
                                                    #000        #000      #000
--------------------------------------------------------------------------------
Operating profit                                  11,803      11,111    24,793
Goodwill amortisation                              1,799       1,445     3,758
Depreciation and amortisation                      9,927       8,611    17,494
Loss (profit) on sale of
tangible fixed assets                                134        (325)   (1,245)
(Increase) in stocks                              (2,519)     (1,279)   (3,324)
(Increase) decrease in debtors                    (3,146)      3,091   (12,913)
Increase (decrease) in
creditors                                          1,688     (13,532)  (10,725)
(Decrease) in deferred income                     (3,453)     (1,278)   (3,194)
Increase in provisions for
liabilities and charges                            1,061       3,391     5,589
Exchange and other non-cash
movements                                           (810)     (1,326)   (2,973)
--------------------------------------------------------------------------------
Net cash inflow from operating
activities                                        16,484       9,909    17,260
================================================================================

                                                Unaudited   Unaudited  Audited
                                                6 months    6 months 12 months
                                                      to          to        to
                                                 30 June     30 June    31 Dec
Cash flow statement                     Note        2003        2002      2002
                                                    #000        #000      #000
--------------------------------------------------------------------------------
Net cash inflow from operating
activities                                        16,484       9,909    17,260

Returns on investment and
servicing of finance                              (5,677)     (3,527)   (6,044)
Taxation                                          (2,178)     (3,203)   (8,907)
Capital expenditure and
financial investment                             (10,482)    (21,302)  (23,478)
Acquisition and disposals                         14,998      10,025    65,149
Equity dividends paid                             (4,829)     (4,220)   (6,418)
--------------------------------------------------------------------------------
Net cash inflow (outflow)
before financing                                   8,316     (12,318)   37,562
--------------------------------------------------------------------------------

Financing
Increase (decrease) in debt                        1,175      (3,261)  (46,521)
--------------------------------------------------------------------------------
Net cash inflow (outflow) from
financing                                          1,175      (3,261)  (46,521)
--------------------------------------------------------------------------------

Increase (decrease) in cash                7       9,491     (15,579)   (8,959)
================================================================================

Notes to Accounts 30 June 2003

1  Basis of preparation

These interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2002 statutory accounts.

The comparative figures for the year ended 31 December 2002 do not constitute
statutory accounts for the purpose of Section 240 of the Companies Act 1985 and
have been extracted from the Group's published accounts, a copy of which has
been delivered to the Registrar of Companies. The report of the auditors of
these accounts was unqualified and did not contain a statement under either
Section 237(2) or Section 237(3) of the Companies Act 1985.

2  Segmental analysis

                                           Unaudited    Unaudited      Audited
                                            6 months     6 months    12 months
                                                  to           to           to
                                             30 June      30 June       31 Dec
                                                2003         2002         2002
                                                #000         #000         #000
--------------------------------------------------------------------------------
Turnover
Drilling - offshore and land
drilling activities (continuing
operations)                                  138,571      129,728      280,843
Drilling - engineering and other
services (continuing operations)              47,604       52,794       97,733
Inspection (discontinued
operations)                                        -       29,069       57,926
Corporate and other (continuing
operations)                                      244          452          583
--------------------------------------------------------------------------------
                                             186,419      212,043      437,085
================================================================================

Operating profit before goodwill
amortisation
Drilling - offshore and land
drilling activities (continuing
operations)                                   12,810       11,548       29,713
Drilling - engineering and other
services (continuing operations)               3,086        2,375        3,037
Inspection (discontinued
operations)                                        -          279         (691)
Corporate and other (continuing
operations)                                     (827)        (503)        (963)
--------------------------------------------------------------------------------
Total before exceptional items                15,069       13,699       31,096
Exceptional items                             (1,467)*     (1,143)      (2,545)
--------------------------------------------------------------------------------
Total after exceptional items                 13,602       12,556       28,551
================================================================================
* Drilling division: exceptional items - reorganisation and restructuring costs
in respect of DEUTAG's engineering subsidiary, Bentec.
Operating profit
Drilling (continuing operations)              12,630       11,668       26,922
Inspection (discontinued
operations)                                        -          (54)      (1,166)
Corporate and other (continuing
operations)                                     (827)        (503)        (963)
--------------------------------------------------------------------------------
                                              11,803       11,111       24,793
================================================================================

3  Taxation

                                     Unaudited       Unaudited         Audited
                                   6 months to     6 months to    12 months to
                                  30 June 2003    30 June 2002     31 Dec 2002
                                          #000            #000            #000
--------------------------------------------------------------------------------
Current period                           3,806           2,568           4,678
Adjustment relating to prior
periods                                      -              64             282
--------------------------------------------------------------------------------
                                         3,806           2,632           4,960
================================================================================

The charge for taxation is calculated by reference to the pre tax profits of the
Group, excluding goodwill amortisation, and applying the effective rates of
taxation expected to apply to profits earned in the main countries in which the
Group operates.

4  Dividends

                                         Unaudited     Unaudited       Audited
                                       6 months to   6 months to  12 months to
                                           30 June       30 June        31 Dec
                                              2003          2002          2002
                                              #000          #000          #000
--------------------------------------------------------------------------------

Dividends on ordinary
shares
- Proposed interim dividend
1.40p (2002: 1.25p)                          2,462         2,198         2,198
- 2002 final dividend 2.75p                      -             -         4,835
--------------------------------------------------------------------------------
                                             2,462         2,198         7,033
================================================================================

5  Earnings per ordinary share

The calculations of earnings per share are based on the following profits and
numbers of shares:

                                          Basic        Diluted       Adjusted
                                                                        basic
                                   30 June 2003   30 June 2003   30 June 2003
                                           #000           #000           #000
-------------------------------------------------------------------------------
Profit for the financial period           6,288          6,288          6,288
Goodwill amortisation                         -              -          1,799
Operating expenses - exceptional
items, net of any taxation
effects                                       -              -            998
-------------------------------------------------------------------------------
                                          6,288          6,288          9,085
-------------------------------------------------------------------------------
Weighted average number of shares   175,836,246    175,836,246    175,836,246
-------------------------------------------------------------------------------
Earnings per share                          3.6p           3.6p           5.2p
===============================================================================

The 30 June 2002 adjusted earnings per share figure of 3.8p (previously 4.0p)
has been restated to exclude discontinued operations.

6  Called-up share capital and reserves

                                            Ordinary      Share     Profit and
                                       share capital    premium   loss account
                                                #000       #000           #000
--------------------------------------------------------------------------------
At 1 January 2003                             26,375     90,123         14,274
Exchange movement on investment in
overseas subsidiaries                              -          -          8,493
Retained profit for the period                     -          -          3,826
Goodwill written back on disposal of
subsidiary                                         -          -          4,314
--------------------------------------------------------------------------------
At 30 June 2003                               26,375     90,123         30,907
================================================================================

7           Reconciliation of net cash flow to movement in net debt

                                       Unaudited      Unaudited        Audited
                                     6 months to    6 months to   12 months to
                                    30 June 2003   30 June 2002    31 Dec 2002
                                            #000           #000           #000
--------------------------------------------------------------------------------
Increase (decrease) in net cash in
the period                                 9,491        (15,579)        (8,959)
(Increase) decrease in loans and
finance leases                            (1,175)         3,261         46,521
--------------------------------------------------------------------------------
Change in net debt resulting from
cash flows                                 8,316        (12,318)        37,562
Finance leases transferred on sale
of subsidiary                                 40              -              -
Exchange movements                           694            202            388
--------------------------------------------------------------------------------
Movement in net debt in the period         9,050        (12,116)        37,950
Net debt at beginning of period          (45,647)       (83,597)       (83,597)
--------------------------------------------------------------------------------
Net debt at end of period                (36,597)       (95,713)       (45,647)
================================================================================

8  Analysis of net debt

                                   Unaudited       Unaudited         Audited
                                 6 months to     6 months to    12 months to
                                30 June 2003    30 June 2002     31 Dec 2002
                                        #000            #000            #000
------------------------------------------------------------------------------
Cash in hand and at bank              10,253           7,731           9,706
Overdrafts                            (3,200)        (16,789)        (12,144)
------------------------------------------------------------------------------
                                       7,053          (9,058)         (2,438)
Debt due after 1 year                (34,849)        (80,105)        (36,669)
Debt due within 1 year                (8,801)         (6,500)         (6,500)
Finance leases                             -             (50)            (40)
------------------------------------------------------------------------------
                                     (36,597)        (95,713)        (45,647)
==============================================================================

Copies of this statement are available from The Secretary, Abbot Group plc,
Minto Drive, Altens, Aberdeen AB12 3LW.


INDEPENDENT REVIEW REPORT TO ABBOT GROUP PLC

We have been instructed by the company to review the financial information set
out on pages 9 to 14. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority, which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied, unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information. This report, including
the conclusion, has been prepared for and only for the company for the purpose
of the Listing Rules of the Financial Services Authority and for no other
purpose. We do not, in producing this report, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent in
writing.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.

PricewaterhouseCoopers LLP
Chartered Accountants

Notes:

(a)  The maintenance and integrity of the Abbot Group plc website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the website.

(b)  Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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