AMCO Corporation PLC - Interim Results

RNS No 6133v
AMCO CORPORATION PLC
6 August 1999


    UNAUDITED INTERIM RESULTS OF AMCO FOR THE SIX MONTHS ENDED 30 JUNE 1999

                             Chairman's statement

Results

I have to report unsatisfactory results for the first half of 1999.

Turnover continued to fall in the mining-related businesses of Amalgamated
Construction, Dosco and Hollybank and those three companies suffered a joint
23 per cent reduction in turnover compared with the first half of 1998.
Further redundancies have been necessary in these mining-related companies and
manning levels remain under constant review.

Ground engineering and overseas drilling and contracting companies had a quiet
start to 1999, due to a lack of turnover caused by prospective contacts either
being delayed or postponed.

The building and civil engineering contracting companies (which include the
structural steel business remaining within the residual Amco Group following
the demerger referred to below) have again been buoyant and this has resulted
in earnings in excess of expectations.

Dividend
As announced today, we propose to demerge the Tolent Group businesses by way
of a dividend to be satisfied by the issue of shares in a new company, Tolent
PLC.  An application will be made for these shares to be admitted to trading
on AIM.  Details of the demerger are contained in the circular dated 6 August
1999 and sent to Amco shareholders.  Having regard to the unsatisfactory
results elsewhere in the Amco Group, we do not intend to pay an interim
dividend for 1999 other than the proposed dividends relating to the demerger.

Prospects
Following the proposed demerger, the prospects for the residual Amco Group
remain uncertain and the Board is considering how best to address the problems
currently facing the residual Amco Group.

Consolidated profit and    Six       Six      Twelve
loss account              months    months    months
Six months ended 30       to 30     to 30     to 31
June 1999                  June      June    December
(Unaudited)                1999      1998      1998
                           #000      #000      #000
Turnover                                             
Continuing operations      70,107    73,995   150,736
Discontinued operations         -       404       918
                          _______   _______   _______
                           70,107    74,339   151,654
                          =======   =======   =======
Operating profit/(loss)                              
Continuing operations         750       647     1,890
Discontinued operations         -     (172)     (409)
                          _______   _______   _______
                              750       475     1,481
                                                     
Share of loss of            (110)      (61)     (202)
associated undertaking
- continuing
Net interest payable        (235)     (111)     (233)
                          _______   _______   _______
Profit on ordinary            405       303     1,046
activities before
taxation
Taxation on profit on       (125)     (100)      (50)
ordinary activities
                          _______   _______   _______
Profit on ordinary            280       203       996
activities after
taxation
Dividends                       -     (347)     (836)
                          _______   _______   _______
Retained profit/(loss)        280     (144)       160
for the period
                          =======   =======   =======
Earnings per share           2.4p      1.6p      8.0p
                          =======   =======   =======
Dividend per share            NIL      2.5p      7.0p
                          =======   =======   =======

The financial information for the half year to 30 June and the comparative
figures for the half year to 30 June 1998 are unaudited and have been prepared
on the basis of the accounting policies set out in the statutory accounts for
the year ended 31 December 1998.  This financial information does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.  The financial statements for the year ended 31 December 1998 have been
delivered to the Registrar of Companies.

The interim results will be circulated to shareholders and a copy will be
available for inspection at the Company's registered office.

Consolidated balance     30 June   30 June      31
sheet                      1999      1998    December
As at 30 June 1999         #000      #000      1998
(unaudited)                                    #000
Fixed assets                                         
Tangible assets            19,594    19,028    19,574
Investments                 1,105     1,067     1,110
                          _______   _______   _______
                           20,699    20,095    20,684
                          _______   _______   _______
Current assets                                       
Stock and work in           9,276    14,112    10,102
progress
Amounts recoverable on      8,369     6,007     7,192
contracts
Debtors                    18,313    14,798    16,734
Cash at bank and in         5,370    12,917     4,410
hand
                          _______   _______   _______
                           41,328    47,834    38,438
                                                     
Creditors: amounts       (41,809)  (47,043)  (38,720)
falling due within one
year
                          _______   _______   _______
Net current                 (481)       791     (282)
(liabilities)/assets
                          _______   _______   _______
Total assets less          20,218    20,886    20,402
current liabilities
Creditors: amounts        (3,866)   (4,392)   (4,535)
falling after more than
one year
                          _______   _______   _______
                           16,352    16,494    15,867
                          =======   =======   =======
Capital and reserves                                 
Called up share capital     1,293     1,388     1,293
Share premium               1,864     1,864     1,864
Capital redemption            132        37       132
reserve
Property revaluation          205         -         -
reserve
Profit and loss account    12,858    13,205    12,578
                          _______   _______   _______
Shareholders' funds        16,352    16,494    15,867
                          =======   =======   =======


Summary consolidated       Six       Six      Twelve
cashflow statement        months    months    months
Six months ended 30         to      to 30     to 31
June 1999 (unaudited)    30 June     June    December
                           1999      1998      1998
                           #000      #000      #000
Operating profit              750       475     1,481
Depreciation on             1,325     1,116     2,400
tangible fixed assets
Loss/(profit) on sale           6      (56)        28
of fixed assets
Movement in working         1,329     3,203   (3,581)
capital
                          _______   _______   _______
Net cashflow from           3,410     4,738       328
operating activities
Net cashflow from           (235)     (110)     (233)
returns on investments
and servicing of
finance
Taxation                     (26)     (188)     (580)
Net cashflow from           (555)     (465)   (1,782)
capital expenditure and
financial investment
Equity dividends paid           -         -     (855)
                          _______   _______   _______
Net cashflow before         2,594     3,975   (3,122)
financing
Net cashflow from         (1,082)   (1,356)   (2,566)
financing
                          _______   _______   _______
Increase/(decrease) in      1,512     2,619   (5,688)
cash
                          =======   =======   =======
Notes                                                
1. Reconciliation of                                 
net cashflow to
movement in net
funds/(debt)
Increase/(decrease) in      1,512     2,619   (5,688)
cash in the period
Cash outflow/(inflow)         442       333     (213)
on bank loans
Cash outflow on finance       640       589     1,375
leases
                          _______   _______   _______
Change in net debt          2,594     3,541   (4,526)
resulting from
cashflows
Inception of finance        (593)     (854)   (1,472)
leases
                          _______   _______   _______
Movement in net             2,001     2,687   (5,998)
funds/(debt) in the
period
Net (debt)/funds at       (3,881)     2,117     2,117
start of period
                          _______   _______   _______
Net (debt)/funds at end   (1,880)     4,804   (3,881)
of period
                          =======   =======   =======
2. Analysis of net                                   
(debt)/funds
Cash at bank and in         5,370    12,917     4,410
hand
Bank overdrafts           (1,250)   (2,002)   (1,802)
                          _______   _______   _______
                            4,120    10,915     2,608
Bank loans                (3,563)   (3,458)   (4,005)
Finance leases            (2,437)   (2,653)   (2,484)
                          _______   _______   _______
Net (debt)/funds          (1,880)     4,804   (3,881)
                          =======   =======   =======
3. Gearing                    11%      -29%       24%
                          =======   =======   =======

END

IR QEFFBKVKBBKD