Dart Group PLC - Final Results

RNS No 2964m
DART GROUP PLC
24 June 1999

                         DART GROUP PLC
                      PRELIMINARY RESULTS
               FOR THE YEAR ENDED 31 MARCH 1999

                     CHAIRMANS STATEMENT

I am pleased to report a further year of good progress for the
Group.    Profit before tax for the year to 31 March 1999  has
risen to #6.11m (1998 - #5.13m) on turnover of #105.7m (1998 -
#87.8m).  Earnings per share were 12.91p (1998 - 11.19p).  The
company  follows a progressive dividend policy and accordingly
the  Board recommends a final dividend of  3.0p (1998 -  2.5p)
making a total dividend of  4.27p for the year (1998 - 3.65p),
an increase of 17%.  The dividend will be payable on 26 August
1999 to shareholders on the register on 9 July 1999.

During the year,  capital expenditure amounted to #19.9m (1998
-  #26.3m).  This related primarily to the completion  of  the
Airbus   A300   Eurofreighter  programme,   ongoing   aircraft
maintenance  and  further investment in the infrastructure  of
the Fowler Welch temperature-controlled distribution business.

It  is  encouraging to note the reduction in the  Groups  net
debt position which fell to #7.1m (1998 - #13.8m). Gearing  at
31  March  1999 was 36% (1998 - 82%).  Interest  cover  was  a
healthy 7 times.

The  Group  has  two  operating divisions -  Distribution  and
Aviation Services.

DISTRIBUTION DIVISION

The  two  companies in the division, Fowler Welch and  Channel
Express (CI), specialise in the physical distribution of fresh
produce   and  horticultural  products  to  supermarkets   and
wholesale  markets  throughout the  United  Kingdom,  Northern
Ireland  and  Eire  and operate both owned  and  contracted-in
temperature-controlled vehicles.

During  the year Fowler Welch has won substantial distribution
business  and has started a new continental European  service.
The   main   Fowler   Welch  operating   site   in   Spalding,
Lincolnshire,  has  been further expanded  and  a  new  leased
40,000  sq.ft. temperature-controlled consolidation centre  in
Portsmouth    commissioned.     Operations   commenced    from
Portsmouth  on 1 May 1999.  Fowler Welch has also  established
itself in  Kent, an important growing and importing county, by
leasing space in purpose-built premises.

Fowler Welch expects to continue to strengthen its presence in
key  growing and importing areas to enable it to service fully
the  produce  and  horticultural  distribution  needs  of  its
customers  and  to  offer complementary temperature-controlled
services.   The major new Portsmouth storage and consolidation
facility  will enable the company to improve its  services  to
southern  England growers and importers, as well as  providing
ideal facilities for Channel Island flower and produce growers
whose  products  are transported from the Islands  by  Channel
Express (CI).

The  handling and efficient and timely distribution  of  these
highly  perishable  goods  on  behalf  of  demanding  growers,
wholesalers   and   supermarkets  requires   experienced   and
dedicated  management  and staff.  Fowler  Welch  and  Channel
Express  (CI)  have  proved  to be  successful  at  developing
facilities,  information systems and  services  to  meet,  and
often exceed, their customers service expectations.

The  Group  is  committed  to  investing  in  this  divisions
continued  growth,  both organically and,  where  appropriate,
with well-targeted and considered acquisitions.

AVIATION SERVICES DIVISION

The  two  companies in the Aviation Services Division are  our
cargo airline, Channel Express (Air Services), and our freight
management    and    forwarding   company,   Benair    Freight
International.

Channel  Express  (Air Services) operates twelve  owned  cargo
aircraft on services throughout Europe and to the Middle  East
on  behalf  of  express parcel companies, postal  authorities,
forwarders  and  other airlines.   Additionally  aircraft  are
leased in as required.

The companys aircraft offer its customers a range of payloads
with  6 tonne capacity Fokker F27s, 15 tonne capacity Lockheed
Electras  and  45 tonne capacity Airbus A300B4 Eurofreighters.
The  company  took  delivery of a further  two  Eurofreighters
during  the financial year and these, together with the  first
of  its  type,  are primarily operated on behalf  of  European
express parcel companies, providing services to their European
sortation hubs at Cologne, Liege and Brussels airports.

Since  the Group placed the first order for the conversion  of
an  Airbus  A300B4 from  a passenger aircraft into a freighter
in  1996, several aircraft leasing companies have also ordered
the type.   The Group does not, therefore, presently intend to
purchase  further  Airbus A300s but will lease  in  additional
aircraft for its operation as required.

Whilst  there  is no doubt that several of our customers  have
experienced  a less buoyant trading climate this  year,  I  am
pleased  to  say that demand for the companys cargo  aircraft
services remains firm.

Channel  Express (Air Services) has recently opened a European
marketing    office   in   Cologne   and   sees   considerable
opportunities  to expand its operations in continental  Europe
and to the Middle East.

Benair  Freight International has traditionally strong general
cargo  management and forwarding links with North America  and
the Far East.  The company also has a niche business importing
and  distributing tropical and cold-water fish. Whilst  Benair
has  been successful in increasing the volumes of goods it has
managed on behalf of its customers during the year yields have
been  depressed, especially to  and from  the Far East.    The
company should benefit considerably from the expected economic
upturn in this region.    In the meantime, Benair continues to
provide a personal and efficient service which is increasingly
appreciated by an expanding customer base.

The  activities  of  each  of our  companies  are  more  fully
detailed  in  the  Review  of Operations  which  follows  this
statement.

The current years trading has commenced satisfactorily and we
aim  to develop and grow in each area of our operations.   Our
progress  to  date, and the potential for future  growth,  are
very  much  a reflection of the expertise and loyalty  of  the
Groups  management and staff.   I am extremely  grateful  for
all their support and hard work.

PHILIP MEESON
CHAIRMAN


REVIEW OF OPERATIONS

DISTRIBUTION

Fowler Welch
The  past  twelve months has been a particularly exciting  and
successful   period   for  Fowler  Welch.    Substantial   new
supermarket business has been won and, at the same  time,  the
distribution network has been strengthened and enhanced by the
introduction  of  new operating centres and the  expansion  of
existing  sites.   To  complement these  developments,  a  new
continental  European service has been introduced  this  year,
further widening the scope of the companys activities.

The  company specialises in the distribution of fresh  produce
and  a  wide  range of flowers and horticultural  products  to
supermarkets and wholesale markets throughout the UK mainland,
Northern  Ireland  and Eire.   From its consolidation  centres
around  the  country,  a  24  hours  a  day,  7  days  a  week
distribution process is controlled by a loyal and  experienced
workforce  which, nationally, manages over 300,000  sq.ft.  of
temperature-controlled  warehousing  and  a  large  fleet   of
modern, temperature-controlled road vehicles.

Much  of the past year has been spent developing the companys
operational  infrastructure  in geographical  areas  that  are
strategically  important  to the  development  of  its  market
sector.  This will enable Fowler Welch to extend the range  of
services  offered,  cater for the growth in existing  business
and to allow for future expansion.

The   main  consolidation  centre  at  Spalding  has  seen   a
considerable  increase  in  fresh  produce  and  horticultural
business  undertaken for UK supermarkets.   An  important  new
contract from Safeway has been won and there has been  further
growth  in  the  work already undertaken  for  Tesco.    As  a
consequence,  it  has  been necessary to extend  the  Spalding
premises further by an additional 13,000 sq.ft. of temperature-
controlled warehousing which became fully operational  in  May
1999,  bringing the total temperature-controlled space at  the
site to around 170,000 sq.ft.

At  Selby,  North Yorkshire, the company has  taken  over  the
entire  transport  operations of  English  Village  Salads,  a
subsidiary  of  Geest  and a supplier  to  all  the  major  UK
supermarket  chains. As a consequence, Fowler Welch  has  been
successful  in  acquiring the J. Sainsbury  contract  for  the
national   distribution  of  perishable  products   from   the
Humberside region which is managed through the Selby centre.

The companys two strategically important Cambridgeshire sites
at  Yaxley and Earith maintain their valuable contributions to
the  company  through their organic growth in the distribution
of pre-packed, locally-grown and imported produce.

Fowler Welch has recognised for  some time that a presence  in
Kent,  one of the souths most important growing and importing
regions,  is  a  natural extension to its distribution  chain.
After careful evaluation of the available options, the company
established  an  operating site at Sheerness Produce  Terminal
near  Sittingbourne  in the Spring of 1999.    This  terminal,
owned  by Mersey Docks and Harbour Company, is the most modern
of  its kind in the country with over 300,000 sq.ft. of  fully
climate-controlled  warehousing and  pre-packing   facilities.
As  well  as successfully securing a new distribution contract
from  a  major supplier, Fowler Welch is working closely  with
the  terminal operators to attract further new business to the
benefit of both parties.

After considerable detailed planning, the companys new 40,000
sq.ft.  consolidation centre at Portsmouth opened for business
on  1  May  1999.   The leased, purpose-designed  building  is
fully  temperature-controlled and  features  multi-compartment
stores   with  state-of-the-art  cooling  equipment,   sixteen
loading  docks with temperature-sealed doors and sophisticated
handling  systems.   A separate 8,000 sq.ft. office  block  on
site  will accommodate administrative and other support staff.
Allowing  optimum levels of quality service, this is  now  the
companys  main southern distribution centre for  the  Channel
Islands  and  imported flowers and produce.   It  also  offers
exciting opportunities for the company to attract new business
from the Hampshire and West Sussex regions as well as via  the
ports of Southampton and Portsmouth.

At  the beginning of 1999, Fowler Welch increased its range of
customer-focused    services  with  the  introduction   of   a
continental  European service.   This arm of the business  has
been  established under a recently-appointed senior  executive
well  known  to  the  company and with  many  years  industry
experience of continental operations.   Using a new  dedicated
fleet of continental specification vehicles, the company  runs
a  regular  service  collecting  horticultural  products  from
Holland  for  UK  delivery on behalf of British  supermarkets,
returning with a variety of perishable products.  The  service
is  still  under careful development but is already  making  a
worthwhile contribution.

Although   "primary"   distribution   from   supplier   to   a
supermarkets  distribution centre is  the  core  business  of
Fowler Welch, the move towards combining this with "secondary"
deliveries   to   supermarket  stores   has   been   developed
successfully,   achieving  greater   efficiency   within   the
distribution  process.  This has led to cost savings  for  the
company  and its customers through the consolidation of  loads
thereby helping the environment by reducing vehicle mileage.

Longer opening hours by the retailers is creating the need for
the  continuous replenishment of their shelves.   To cater for
this,  the  supermarkets  now require  a  wider  selection  of
products  to be carried on the same vehicle with more frequent
deliveries   to  stores.   Fowler  Welch  sees  this   as   an
opportunity  to   expand  the range of  temperature-controlled
products it distributes thereby increasing the volumes handled
through its network.

A  number of high-level management appointments have been made
during  the  year, bringing to the company valuable specialist
industry expertise.   The company is also reaping the  rewards
of  its in-house and external training programmes, which  have
nurtured career development within the organisation,  as  well
as  allowing  the additional staff recruited  to  support  the
expanded  operations to become active members of the  team  as
quickly as possible.

Channel Express (CI)
Maintaining  its position as an important link between  Fowler
Welchs UK operations and the Channel Islands, Channel Express
(CI)  provides the Islands growers with a vital air, sea  and
road   service  to  the  mainland  markets.    The   companys
returning  freight services deliver consumer goods, fresh  and
chilled  foodstuffs,  mail and national  newspapers  to  local
communities in both Guernsey and Jersey.

With  the  move from Bournemouth of the Fowler Welch  southern
horticulture  and  produce distribution operation,  Portsmouth
has   become  the  consolidation  point  for  Channel  Islands
perishables  which arrive via this port.   It is now  possible
to  sort  and  despatch consignments more quickly and  achieve
earlier  arrival  times at markets.  These  spacious  premises
also  offer  opportunities  for Channel  Islands  growers  to
exploit new and innovative marketing methods.

The   Groups  air  service  will  continue  to  operate  from
Bournemouth  on  the  Channel Islands route,  maintaining  the
network  link  for  the  important  express  delivery  service
provided by the company for parcels and similar traffic to the
Islands.

The  Distribution Division is now well equipped to provide its
customers with a high quality, flexible service and  is  ready
to  continue  to exploit the growth potential of its  position
as market leader in its attractive and specialist distribution
sector.

The  developments and expansion plans that have  been  put  in
place, along with careful investment in the latest information
technology  and communications systems, give the  companies  a
competitive edge when seeking to retain existing business  and
setting  out to attract new contracts.  The year ahead  should
see  further progress and growth being achieved throughout the
division.

AVIATION SERVICES

Channel Express (Air Services)

Regrettably the company  suffered a fatal aircraft accident on
12  January  1999 when one of its Fokker F27s crashed  on  the
approach to Guernsey airport whilst carrying newspapers to the
Island.   Sadly  both members of the aircrew were  killed  and
some  damage  occurred  on  the  ground.    The  Air  Accident
Investigation Board has yet to publish its final report on the
accident.  However  the company believes  there  has  been  no
implication  of  any  mechanical  defect  with  the  aircraft.
Obviously,  an accident such as this greatly affects  everyone
concerned,  both directly and indirectly, with our  operation.
Our  thoughts  and  condolences continue to  be  with  Captain
Martin  Bulgins  and  First  Officer  Ian  Rhodes  families,
friends and colleagues .

Channel  Express  (Air Services) operated eight  Fokker  F27s,
four  Lockheed  Electras and three Airbus A300  Eurofreighters
for much of the financial year, together with the Groups last
remaining Dart Herald, which retired in March 1999.   This was
the  last  of  twelve Heralds owned and operated  over  twenty
years.

The  companys  aircraft  fly  on  behalf  of  express  parcel
companies,  postal authorities, freight forwarders  and  other
airlines.     Additionally,  many  "ad   hoc"   charters   are
undertaken,  often  at  short notice, to  meet  the  needs  of
customers  with urgent shipments. Typically these flights  are
carried  out for manufacturers who operate just in time  stock
replenishment  systems  and  are facing  shortfalls  in  their
surface supply chains.

Whilst the company has strong commercial operations in the UK,
especially   on  behalf  of  the  Royal  Mail  and   newspaper
publishers, for whom papers are delivered daily to the Channel
Islands,  its operations for the express carriers are  centred
on  their European sortation and distribution hubs at Brussels
Airport for DHL, Liege Airport for TNT and Cologne Airport for
UPS.    These hubs are linked by nightly air and road services
to  cities  throughout  Europe offering time-definite  express
parcel deliveries.

Reliability  and high service standards are essential  to  the
success  of  this business and Channel Express (Air  Services)
particularly  prides  itself  on  being  one  of  the  leading
suppliers of cargo aircraft services to this dynamic industry.
In  order  to  market the companys services  in  Europe  more
effectively,  a  sales  and marketing  office  was  opened  in
Cologne  on  1  September 1998.  This is  run by the  Regional
Manager  -  Europe.    It is intended to build  upon  what  is
already  a  successful sales operation and, at the same  time,
explore  the potential for entering into alliances with  other
European  carriers where opportunities exist for our  aircraft
types in their markets.

In  September  the  Group took delivery of  its  third  A300B4
Eurofreighter   and  so  completed  its  programme   for   the
conversion  of three of the type from passenger aircraft  into
freighters.     The  smooth  introduction  into  service   and
excellent  reputation  our Eurofreighters  have  obtained  for
reliability is a considerable achievement by a dedicated  team
of   aircrew,   operations,  engineering  and   administrative
personnel.

Together  with the three operating Eurofreighters,  the  Group
purchased  two  older Airbus A300B2 aircraft at  the  time  of
their  retirement from service by Air France.   These aircraft
have  been dismantled to provide spare parts and engines, both
for  our  own aircraft and for those of other operators.    In
order  to  service this market, Channel Express (Air Services)
has  established  a  new  internal operating  division  called
"Parts  Trading",  staffed by experienced  company  employees.
This operation  has commenced trading promisingly and the  aim
is  to develop its business by expanding its support of Airbus
and other aircraft types over the coming years.

The  Groups three Lockheed Electras continue to give reliable
service  to our express parcel and postal authority customers.
During  the year the Electra fleet has been supplemented  with
aircraft  leased from other carriers.  The type is  especially
valuable  for night operations since, unlike its "hush-kitted"
jet    competitors,   it   comfortably   conforms   with   the
International  Civil Aviation Organisation "Chapter  3"  noise
limitations  and is readily accepted at the European  airports
which place operating restrictions on noisier types.

The F27 fleet has had a busy year. Unlike the other fleets, it
has  experienced a high turnover of pilots which has made  the
operation  of the type more difficult than it would  otherwise
have been. To counter this we have had to undertake an unusual
amount  of  aircrew training through the year.   Our  training
staff  work  extremely  hard  to give  quality  ground-school,
simulator   and   flying  training  and  it  is   particularly
commendable  that  the dedication of our  aircrew  and  flight
operations  staff  has  enabled  the  company  to  fulfil  its
contractual commitments in sometimes difficult circumstances.

Throughout  the year the company has continued to develop  its
information  technology, operational and engineering  systems.
Channel  Express (Air Services) will continue  to  expand  its
reliable   and  cost  effective  freighter  aircraft  services
throughout  Europe and to the Middle East.  The  company  also
believes  there will be opportunities to  work in  partnership
with   Fowler   Welch   and  to  offer  a   seamless   service
transporting products destined for UK supermarkets by air  and
road from their foreign suppliers.

Benair Freight International
The past year has been one of considerable progress for Benair
Freight  International,  the Groups  freight  management  and
forwarding  company.   In October 1998, the  company  extended
its  operations in the UK by opening an office  and  warehouse
facility    in     Newcastle-upon-Tyne.      This    operation
supplements the companys existing branches at London Heathrow
and Manchester airports and a newly relocated facility at East
Midlands Airport.

During  the  year,  Benair has looked to expand  its  horizons
beyond  the  wholly-owned  subsidiary  in  Singapore  and  its
related  companies in Hong Kong and Malaysia  to  form  closer
relationships  with  partners in other Far Eastern  countries,
the  Middle East and the Americas and to develop its core air,
sea and road freight services.

This  has  allowed Benair to introduce its "Connects" product,
the  first  of which is a guaranteed time-definite service  to
and from Hong Kong for freight of any size.

Benair  has,  for  many  years, had a very  significant  niche
business in the importation of tropical, marine and cold-water
fish  that  requires considerable specialised knowledge.   The
company  provides  a complete distribution  service  from  the
overseas  source  to  its  UK customers.  Although  Benair  is
already  a  major force in the UK market for ornamental  fish,
considerable opportunities for expansion of its services, both
in scope and scale are believed to be achievable.

Throughout  the year continuing investment has  been  made  in
information   technology   improvements,   freight    handling
facilities and staff training to provide a solid platform  for
future  expansion.    Benair is increasingly being  recognised
as  a  high quality employer within the international  freight
management industry and its growing and loyal customer base is
a direct reflection of its personal and efficient service.

The  company  is well placed to take advantage of  any  future
improvements   in  the  Far  East  and  continental   European
economies and to work with Channel Express (Air Services)  and
Fowler Welch to provide seamless international services.


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 1999

                                             1999      1998
                                 Notes  (audited) (audited)
                                            #000     #000

TURNOVER                           1      105,730    87,809
                                                           
Net operating expenses                   (98,920)  (82,174)
                                          _______    ______
                                                           
OPERATING PROFIT                            6,810     5,635
Surplus on disposal of fixed
 assets                                       299        57                    
    
Net interest payable                      (1,004)     (567)
                                           ______     _____
PROFIT ON ORDINARY ACTIVITIES                              
 BEFORE TAXATION                            6,105     5,125
                                                           
Taxation                                  (1,936)   (1,522)
                                           ______    ______
PROFIT ON ORDINARY ACTIVITIES                              
 AFTER TAXATION                             4,169     3,603
                                                           
Dividends                                 (1,380)   (1,178)
                                           ______    ______
                                                           
RETAINED PROFIT FOR THE YEAR                2,789     2,425
                                           ======    ======
                                                           
EARNINGS PER SHARE                  5                               
-  basic                                   12.91p    11.19p
-  diluted                                 12.78p    11.11p
                                           ======    ======                    
                                      

STATEMENT OF TOTAL
 RECOGNISED GAINS AND LOSSES
                                             1999      1998
                                            #000     #000
                                                           
Profit on ordinary activities               
 after taxation                             4,169     3,603
Foreign exchange loss on                   
 foreign equity investment                   (15)      (57)
                                            _____     _____
                                            4,154     3,546     
                                            =====     =====
CONSOLIDATED BALANCE SHEET
at 31 March 1999

                                      1999        1998 *
                           Notes   (audited)     (audited)
                                  #000    #000   #000   #000
FIXED ASSETS                                                
Tangible assets                         38,820        36,111
Investments                                106           106
                                         _____         _____
                                        38,926        36,217
CURRENT ASSETS                                              
                                                     
Stock                             1,435         1,478
Debtors                          14,122        12,433
Cash at bank and in hand          9,147         6,597
                                  _____         _____
                                 24,704        20,508
                                                            
CURRENT LIABILITIES                                         

CREDITORS: amounts falling                                  
 due within one year           (25,867)      (19,281)       
                                 _____         _____       

NET CURRENT (LIABILITIES)
 /ASSETS                                (1,163)         1,227
                                         _____          _____
                                                            
TOTAL ASSETS LESS CURRENT
 LIABILITIES                             37,763        37,444

CREDITORS: amounts falling
 due after more than
 one year                      (14,942)      (18,277)                          
      
PROVISION FOR LIABILITIES
 AND CHARGES                    (3,251)       (2,408)
                                 _____         _____
                                       (18,193)      (20,685)
                                         _____         _____
                                                            
                                         19,570        16,759
                                         ======        ======
                                              
CAPITAL AND RESERVES                                        
Called up share capital                   1,617         1,614
Share premium account                     4,564         4,530
Profit and loss account     2            13,389        10,615
                                          _____         _____
                                              
SHAREHOLDERS FUNDS -                                       
equity interests                         19,570        16,759
                                         ======        ======
                                                            
* As Restated                                               


CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 1999

                                              1999      1998
                                  Notes  (audited) (audited)
                                             #000     #000
NET CASH INFLOW FROM                                        
 OPERATING ACTIVITIES                 3     24,480    14,388
                                                            
RETURNS ON INVESTMENT AND                                   
 SERVICING OF FINANCE                      (1,004)     (567)
                                                            
TAXATION                                     (512)   (1,037)
                                                            
CAPITAL EXPENDITURE AND                                     
 FINANCIAL INVESTMENT                     (15,091)  (22,762)
                                                            
EQUITY DIVIDENDS PAID                      (1,217)   (1,078)
                                            ______    ______
                                                            
CASH INFLOW/(OUTFLOW) BEFORE                                
 MANAGEMENT OF LIQUID RESOURCES                              
 AND FINANCING                               6,656  (11,056)

MANAGEMENT OF LIQUID RESOURCES             (4,549)         -
                                                            
FINANCING                                  (4,106)    14,333
                                            ______    ______
(DECREASE)/INCREASE IN CASH                                 
 IN THE YEAR                               (1,999)     3,277
                                            =====      =====
                                                            
                                                            
RECONCILIATION OF NET CASH FLOW                             
TO MOVEMENT IN NET DEBT                       1999      1998
                                             #000     #000
                                                            
(Decrease)/increase in cash in             
 the period                                (1,999)     3,277

Cash used to increase liquid
 resources                                   4,549         -

New finance leases in period                     -   (1,309)

Cash outflow/(inflow) from                  
 decrease/(increase) in
 net debt in the period                      4,143  (14,276)
                                             _____    ______                   
              
Change in net debt in the period             6,693  (12,308)

Net debt at 1 April                       (13,765)   (1,457)
                                            ______    ______
                                                            
Net debt at 31 March                       (7,072)  (13,765)
                                            =====    ======


NOTES

1.   TURNOVER

                                         Year to      Year to
                                        31 March     31 March
                                            1999         1998
                                       (audited)    (audited)
                                           #000        #000
                                                        
     Distribution                         44,942       37,696
     Aviation Services                    60,788       50,113
                                        ________     ________
                                         105,730       87,809
                                        ========     ========
     Turnover arising within:                                
     The  United Kingdom
     and the Channel Islands             104,663       86,547
     The Far East                          1,067        1,262
                                        ________     ________
                                         105,730       87,809
                                        ========     ========

     Analyses of profit before taxation and net assets between
     the different  segments  of the Group are not  given  as,
     in  the opinion  of  the directors, such analyses would
     be  seriously prejudicial  to  the  commercial  interests
     of  the  Group. Turnover  to  third parties by destination
     is  not  materially different to that by source.

2.   PROFIT AND LOSS ACCOUNT

                                         Year to      Year to
                                        31 March     31 March
                                            1999         1998
                                       (audited)    (audited)
                                           #000        #000
                                                        
     Balance at the beginning of 
      the year                            10,615        8,247
     Retained  profit for the year         2,789        2,425
     Currency translation differences       (15)         (57)
                                        ________     ________
                                          13,389       10,615
                                        ========     ========


3.   RECONCILIATION OF OPERATING PROFIT
     TO NET CASH FLOW FROM OPERATING ACTIVITIES
     
                                         Year to      Year to
                                        31 March     31 March
                                            1999         1998
                                       (audited)    (audited)
                                           #000        #000
                                                        
     Operating profit                      6,810        5,635
     Depreciation                         15,315        9,269
     Decrease/(increase) in stock             43        (701)
     (Increase)/decrease in debtors      (1,689)           14
     Increase in creditors                 4,016          228
     Exchange differences                   (15)         (57)
                                        ________     ________
                                          24,480       14,388
                                        ========     ========
     
4.   The  financial information for the years ended  31  March
     1998  and  1999 do not constitute statutory accounts,  as
     defined in Section 240 of the Companies Act 1985, but are
     based on the statutory accounts for the years then ended.
     Statutory accounts for the year ended 31 March  1998,  on
     which the auditors issued an unqualified opinion pursuant
     to Section 235 of the Companies Act 1985, have been filed
     with the Registrar of Companies.   Statutory accounts for
     the  year  ended  31  March 1999, on which  the  auditors
     issued an unqualified opinion pursuant to Section 235  of
     the  Companies Act 1985, will be filed with the Registrar
     of Companies in due course.

5.   Earnings  per  share  are calculated  on  the  profit  on
     ordinary activities after taxation for the financial year
     and  on  32,299,341 (1998: 32,202,480) shares, being  the
     weighted  average  number of shares in issue  during  the
     year.

6.   The  proposed final dividend of 3.0 pence (net) per share
     will,  if  approved,  be payable on  26  August  1999  to
     shareholders  on the Companys register at the  close  of
     business on 9 July 1999.

7.   The 1999 Annual Report and Accounts (together with the
     Auditors Report) will be posted to shareholders on 9
     July 1999.  The Annual General Meeting will be held
     on 5 August 1999.

8.   Year 2000 Compliance Statement

     The  Group is fully aware of the serious implications  of
     disruption  to  business operations as a result  of  Year
     2000 date problems.
     
     Given  the complexity of the problem, it is not  possible
     for  any  organisation to guarantee  that  no  Year  2000
     problems  will remain.  The Groups compliance plans  are
     well  advanced.   The  Group believes  that  all  of  its
     business critical internal computer systems are now fully
     millennium   compliant  and  all   of   the   appropriate
     replacement of both hardware and upgrades of software has
     now taken place.
     
     The  Group  has  embarked upon an audit  of  its  mission
     critical  suppliers to ensure that they  too  have  fully
     dealt  with  Year  2000  issues  and  there  will  be  no
     disruption to the service they supply to Group companies.
     The  Group  has also drawn up detailed contingency  plans
     which will be continually updated and revised to minimise
     any possible disruption to its business.
     
     As  a  result of the action the Group has taken and  will
     take  customers, suppliers and investors can  have  every
     expectation that its businesses will continue to function
     in such a way that no disruption to either its own or its
     clients businesses will result from the Year 2000
     problem.


END

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