RNS No 7364m
HADLEIGH PLC
1st July 1997


Preliminary Audited Results for the period ended 28 March 1997
 
                          Highlights
 
* Continuing operations
                               1997        1996
                              #'000       #'000
 
  Turnover                   30,255      26,440        +14%
  Operating Profit            2,419       1,863        +30%
  Profit before Tax           2,346       1,769        +33%
  Earnings per Share           21.8p       16.8p       +30%
  Dividend per Share            7.0p        5.75p      +22%
 
* All operations
                               1997        1996
                              #'000       #'000
 
  Turnover                   31,315      28,020       +12%
  Profit before Tax           2,127       1,805       +18%
  Earnings per Share           18.9p       17.4p       +9%
 
 
*    Final dividend increased to 4.75p (1996: 4.0p) - total
     for the year 7.0p (1996: 5.75p)
*    Exports 67% of sales, up 20% on 1996
*    Operating margin up to 8% (1996: 7%)
*    Strong Balance Sheet - net cash #1.3m  (1996: #1.6m)
*    Capital expenditure #1.8m (1996: #1.0m)
 
Commenting on the results, Don McFarlane, Hadleigh's Chairman,
said:
 
"The  year  under review was another one of very  satisfactory
progress  for Hadleigh, with both Universal Bulk Handling  and
Cookson and Zinn increasing their sales, margins and profits.
 
The  capital investment programme announced last year is  well
underway with #1.7 million of equipment already installed  and
commissioned.
 
The  markets  in which we operate continue to expand  but  are
competitive.   Also the effect of Sterling's increasing  value
on  our  exports  cannot  be ignored.   However,  the  capital
projects which we are currently implementing are an indication
of  our  determination to reduce production costs and  enhance
margins.   We expect to continue the progress of recent  years
and if the current business environment remains stable, we can
look forward to a satisfactory outcome in the current year."
 
For further information please contact:
 
Hadleigh plc                     On 1 July 1997  0171 253 2252
Tony Cookson, 
Group Chief Executive                 Thereafter  01473 282500
Rory Shearer, 
Group Finance Director
 
Ludgate Communications                           0171 253 2252
Tim Davis
Sarah Harper
 
Chairman's Statement
 
The  year ended 28  March  1997 was a year of further progress
for  your group with a very satisfactory performance from  the
continuing  operations  and  the sale  of  A1  International's
business  assets which completes the disposals of our non-core
activities.
 
RESULTS
 
Turnover  from the continuing operations increased by  14%  to
#30.3m   (1996:  #26.4m).   This  was  led  by  a  significant
improvement  in  exports, which now  represent  67%  of  group
sales,  a  very  creditable achievement in highly  competitive
markets.  Operating profit from these operations increased  by
30%  to  #2.42m (1996: #1.86m) which, with a further reduction
in  interest costs, increased the profit before tax to  #2.35m
(1996:  #1.80m).  This  represents a return on sales  of  7.8%
compared  with  6.8% last year.  Earnings per share  from  the
continuing  operations were 21.8p (1996: 16.8p) an improvement
of 30%.
 
The  disposal of A1 International resulted in a charge to  the
profit  and  loss  account of #190,000 including  #108,000  of
goodwill,   previously  written  off.    Together   with   the
continuing  operations, this resulted in  profit  on  ordinary
activities  before  taxation  of  #2.13m  (1996:   #1.8m)   an
improvement  of  18%.  The taxation charge of #725,000  (1996:
#546,000)  leaves  a  profit  on  ordinary  activities   after
taxation  of #1.40m (1996: #1.26m) and earnings per  share  of
18.9p  (1996:  17.4p).   The board  is  recommending  a  final
dividend  of 4.75p per share, which together with the  interim
dividend  of  2.25p makes a total of 7p for  the  year  (1996:
5.75p)  an  increase of 22%.  The dividend, which  is  covered
three times by adjusted earnings per share, will be payable on
1  October 1997 to shareholders on the register at 4 September
1997.
 
The  capital investment programme announced last year is  well
underway  with  #1.7m  of  equipment  already  installed   and
commissioned.  Despite this expenditure I am pleased to report
the  considerable strengthening of the balance sheet over  the
past  two  years,  with net cash currently  of  #1.27m  (1996:
#1.62m).
 
BUSINESS REVIEW
 
Universal    Bulk   Handling   increased   both   sales    and
profitability,  overcoming more challenging market  conditions
and  adverse  exchange rates.  The programme  to  improve  the
manufacturing   facilities  involving  the   installation   of
sophisticated  manipulating  and welding  equipment  continues
with  a  further  #1.3m committed in the current  year.   This
ongoing  investment is essential to maintain  our  competitive
position  and improve margins as well as to provide additional
capacity for this expanding company.
 
Cookson  and  Zinn  continues to improve its performance  with
another  year  of  growth  in both  sales  and  profitability.
Additional  business  is being generated from  the  Continent,
especially  the  Central  European  countries.     The   #1.5m
investment  announced in my interim statement  is  progressing
well  with  the new factory and semi automatic  tank  line  on
schedule  to  meet our projected start up date  in  September.
This  investment in new plant and equipment should ensure that
the recent growth in sales and profitability is sustained.
 
On  28 February we completed the disposal of A1 International,
a  small  trailer and truck repair business which made  little
contribution to profits.  As a result the Group is now focused
on  its core activities as a specialist engineer designing and
manufacturing highly specialised vessels for the movement  and
storage of liquids and gases.
 
PERSONNEL
 
Stephen  Yapp who had been our Finance Director for  the  last
four  years left us at the end of June.  We are very sorry  to
lose his services and wish him well in his new appointment.  I
would  like to welcome Rory Shearer who was appointed  Finance
Director on 2 June.  Prior to joining Hadleigh, Rory had  been
Group Finance Director of Adwest Group Plc for four years.
 
All  of  our  employees have contributed to the  significantly
improved situation of the Group and on behalf of the  board  I
would  like  to express our appreciation for the  co-operation
and hard work of all concerned.
 
OUTLOOK
 
The  markets  in which we operate continue to expand  but  are
competitive.   Also the effect of Sterling's increasing  value
on  our  exports  cannot  be ignored.   However,  the  capital
projects which we are currently implementing are an indication
of  our  determination to reduce production costs and  enhance
margins.   We expect to continue the progress of recent  years
and if the current business environment remains stable, we can
look forward to a satisfactory outcome in the current year."
 
D D McFARLANE
Chairman
 
Chief Executive's Review
 
Last  year  I  stated that our fundamental  objective  was  to
continually improve margin and profit growth.  I believe  that
a  1.0%  improvement in the operating margin  from  continuing
operations  to  8%  and  a 30% increase  in  operating  profit
demonstrates  Hadleigh's  ability to  fulfil  that  objective.
Turnover  also increased by 14% with virtually all the  growth
coming  from new exports, advancing overseas sales  to  record
levels.   With   a  committed  policy  of  achieving   ongoing
significant reductions in the unit cost of production  we  are
confident,  despite a more challenging year in prospect,  that
in  the  medium  term our operating margins will  continue  to
grow.
 
UNIVERSAL BULK HANDLING

Designs   and  manufactures  ISO  tank  containers   for   the
intermodal   transportation  of  hazardous  and  non-hazardous
liquids and gases.
 
Output  increased  in  line with expectations,  exceeding  the
projected  industry  growth of 10% per  annum  in  the  global
market for tank containers.  Industry forecasts indicate  that
in the medium term this trend will be ongoing as environmental
and  commercial pressures ensure that international  transport
operators adopt evermore safe and efficient methods for moving
hazardous liquids around the world.
 
Last  year  I advised of the importance we place on developing
the  specialist  operator market for our full frame  and  swap
body  units.   It  is  encouraging to be able  to  report  the
considerable progress that Universal Bulk Handling has made in
this  direction by more than doubling sales of  this  product.
The  commitment  made  in focusing on  the  European  operator
market is now beginning to pay dividends as the customer  base
continues  to expand.  We confidently expect our  sales,  into
this  sector  of  the market, to increase further  during  the
current year.
 
The  developing  economics  within  the  Asia  Pacific  region
presents  Universal  Bulk Handling with a  significant  growth
opportunity as the international chemical producers  construct
new   production  facilities  in  the  area.   Having  already
established  a  successful agency agreement  in  Singapore  we
appointed  an  agent in Japan during the year,  from  which  a
modest,  but  steady stream of orders is already beginning  to
flow.   The potential for increasing our share of the Japanese
market is excellent as recent changes in local regulations for
vehicle weights benefit the Universal Beam Tank.  Australia is
also  emerging  as an important market for  the  use  of  tank
containers and we expect to enhance our position as a  leading
supplier during the coming year.  In the medium to longer term
we   believe   that  it  will  be  essential  to  have   local
manufacturing  facilities within South East Asia  and  we  are
carefully researching the options available to us.
 
Our  plans  to establish a depot in the USA have not  come  to
fruition.  The  internal  US market  is  not  growing  as  the
industry generally expected, due largely to fragmented US rail
and  road  transport  networks.  Progress  is  being  made  to
resolve  this problem as a number of the large rail  companies
are  merging to create a more efficient service, but  it  will
still  be some time before the movement of liquids inside  the
US  becomes  truly  intermodal.   However, international  tank
shipments  to  and  from  the major US  seaports  continue  to
increase  in  line  with  global growth.   We  will  therefore
monitor  developments closely and progress our  plans  as  and
when it is appropriate to do so.
 
Our  policy  for  targeting  sales growth  from  international
operators  requires that we have a programme of continual  new
product development.  As new chemicals are produced to service
the  growing world-wide electronics industry, there is a  need
for  more  specialised equipment which will allow  temperature
control,  within  very strict tolerance limits,  to  transport
them.   The  thermal  performance of  our  products  is  being
improved   alongside  the  development   of   new   and   more
sophisticated  heating  and  cooling  systems.   We  are  also
continually researching ways of increasing the capacity of the
standard  ISO  container while at the same  time  ensuring  we
continue to achieve minimum product tare weights.
 
Sales  growth,  product development and the maintenance  of  a
profitable competitive edge requires capital investment.   The
#4m  investment  programme announced last  year  is  now  well
underway,  with  half already committed and  a  further  #1.3m
being  commissioned  in the next twelve months.   By  far  the
largest  proportion of the balance will be on robotic  welding
projects with the first units becoming operational during  the
second  half of the year.  Another major step forward  is  the
installation of an integrated computer management system which
will  ensure  a  more  effective  control  on  our  inventory,
production costs and use of working capital.  It also provides
the capability of electronic data transfer such that customers
are  able  to have direct access to our engineering facilities
thereby improving our overall customer service.
 
Universal   Bulk  Handling  is  a  world  class   manufacturer
supplying a developing global market.  Its continual drive for
a  wider  customer base, product improvement and reduced  unit
manufacturing cost will go a long way towards ensuring that it
remains a highly competitive world leader in this market.
 
COOKSON AND ZINN

Designs  and manufactures double skinned petrol tanks, general
storage  tanks  and pressure vessels in carbon  and  stainless
steels.
 
The  improvement in performance which became evident last year
continued with a significant growth in both sales and  profits
during  this  year.   By far the largest contributor  to  this
growth  was  tripling the exports of petrol tanks into  Europe
arising from our agreements with Esso, BP and Jet.
 
Quite  clearly the company's determination over the past  five
years  to steer the European standard for petrol tanks towards
a  UK designed product has proved successful.  EN12285 is  now
the accepted standard throughout the EU and is being used by a
number  of  the major petrol retailers for their  new  service
stations.   The most significant boost to exports  during  the
current  year  will  come from a new five  year  agreement  to
supply   petrol  tanks  to  Shell  International   and   their
affiliates  in  sixteen European countries.  The  majority  of
these  are in Central Europe where we understand a significant
proportion of Shell's new investment is being focused.
 
As  far as the UK market is concerned it remains mature.   The
oil  companies  continue  their policy  of  rationalising  the
number of retail outlets while at the same time maintaining  a
price  war  with  the  supermarkets.  This  clearly  does  not
provide  an  environment in which they will commence  a  major
redevelopment programme of their petrol stations.  As  in  the
recent  past,  capital  is only being  invested  on  essential
projects and in new high volume sites.  It may be that the new
Government will follow the lead set by other EU Countries  and
demand that all single skin tanks and pipework are replaced by
double wall containment.  Should this turn out to be the  case
then Cookson and Zinn would see an upturn in its home market.
 
In  light  of  the  projected increase in  demand  we  had  no
hesitation in reviewing the capital expenditure plans notified
last year and came to the conclusion that the only way forward
was  to invest in a semi automatic petrol tank production line
capable of producing 2,100 units per year which is three times
our  current  output.   The investment  will  cost  #1.5m  and
involves  the demolition of half our existing facilities,  the
construction  of a new 3,000m2 factory and the installation of
highly  specialised  welding  and  handling  equipment.    The
project  is  on  schedule to be commissioned  by  the  end  of
September.  Whilst the medium to longer term benefits of  this
project  will  more  than justify the investment,  there  will
inevitably be some disruption to our business during the first
half of the current year.  However, we are confident that  the
increased  output  in  the  second  half  of  the  year   will
compensate for this.
 
A  further  benefit of this new investment will be a dedicated
facility  for  the  production of general  storage  tanks  and
vessels.   This  will provide the capacity  for  further  cost
reduction and improved efficiency, essential factors if we are
to  maintain the growth in output and profitability seen  over
the last two years in this particular sector of our business.
 
Last   year   I   identified  two  specific   projects   under
development.   The first, a modular petrol  station,   is  now
well  advanced  and  we expect to be building  prototypes  for
installation   prior  to  Christmas.   If  the  trials   prove
successful the future looks very encouraging for this project.
Our  second  project, a GRP/Steel composite petrol  tank,  the
immediate  priority has reduced because the two  large  petrol
retailers  who  were  interested have,  for  the  time  being,
decided to use double skin steel tanks.
 
Cookson and Zinn is now the dominant UK manufacturer of petrol
tanks and is well on the way in establishing itself as a major
European player.  We expect the Company to make an  increasing
contribution to the Group's future performance.
 
TONY COOKSON
Group Chief Executive
 
Consolidated Profit and Loss Account
For the period ended 28 March 1997
                                                   1997        1996
                                                  #'000       #'000
  Turnover
  Continuing operations                          30,255      26,440
  Discontinued operations                         1,060       1,580
                                               --------------------
  Total turnover                                 31,315      28,020
  Cost of sales                                 (26,316)    (23,760)
                                               --------------------
  Gross profit                                    4,999       4,260
                                               --------------------
  Operating profit
        Continuing operations                     2,419       1,863
        Discontinued operations                     (26)         36
                                               --------------------
  Total operating profit                          2,393       1,899
  Loss on sale of business 
  (including goodwill write off)                   (190)          -
                                               --------------------
  Profit on ordinary activities 
  before interest                                 2,203       1,899
  Net interest payable                              (76)        (94)
                                              ---------------------
  Profit on ordinary activities 
  before taxation                                 2,127       1,805
  Tax on profit on ordinary activities             (725)       (546)
                                              ---------------------
  Profit on ordinary activities 
  after taxation                                  1,402       1,259
  Dividends
     Interim paid: 2.25p (1996: 1.75p)             (168)       (127)
     Final proposed: 4.75p (1996: 4.00p)           (355)       (298)
                                              ---------------------
  Retained profit for the period                    879         834
                                              ---------------------
  Earnings per ordinary share                      18.9        17.4
                                              ---------------------
  Adjusted earnings per ordinary share             21.8        16.8
                                              ---------------------
 
 
1.  Earnings per share has been calculated using the profit on
    ordinary  activities after taxation of  #1,402,000     (1996:
    #1,259,000)  and by reference to the weighted average  number
    of  shares  in  issue  for  the period  of  7,426,714  (1996:
    7,251,576).  The number of shares in issue at 28  March  1997
    was 7,465,601  (1996: 7,348,274) ordinary shares.
 
    Adjusted  earnings  per share has been calculated  using  the
    profit  before taxation of #2,127,000 adjusted for  the  loss
    on  discontinued activities of #26,000, loss on  disposal  of
    #190,000   and  interest  payable  relating  to  discontinued
    activities  of  #3,000.  This  results  in  a  profit  before
    taxation  of  #2,346,000, which after applying a  tax  charge
    of  #730,000 relating to continuing activities gives a profit
    after taxation on continuing activities of #1,616,000. 
 
2.  The  comparative figures for the period ended 29  March
    1996  have been taken from, but do not constitute the group's
    statutory accounts for that period. Those statutory  accounts
    have  been  reported on by the group's auditor and  delivered
    to  the Registrar of Companies. The report of the auditor was
    unqualified  and  did not contain a statement  under  Section
    237 (2) or (3) of the Companies Act 1985.
 
3.  Copies  of  the  Annual Report and Accounts  are  being
    posted  to shareholders. Further copies can be obtained  from
    the   company's   registered  office:   Cromwell   Court,   5
    Greyfriars Road, Ipswich, Suffolk IP1 1XG.
 

Consolidated Balance Sheet
at 28 March 1997
 
                                                   1997        1996
                                                  #'000       #'000
  Fixed assets
  Intangible assets                                  48          71
  Tangible assets                                 8,100       7,131
                                              ---------------------
                                                  8,148       7,202
 
  Stock                                           1,772       1,646
  Debtors                                         4,758       4,072
  Cash net of medium term loan                    1,268       1,616
  Creditors: amounts falling
  due within one year                            (7,958)     (7,367)
  Provisions for liabilities and charges            (40)        (40)
                                              ---------------------
  Net assets                                      7,948       7,129
                                              ---------------------
  Capital and reserves
  Called up share capital                         3,733       3,674
  Share premium account                           1,205       1,156
  Revaluation reserve                               702         987
  Profit and loss account                         2,308       1,312
                                              ---------------------
  Equity shareholders' funds                      7,948       7,129
                                              ---------------------
 
The  comparative figures for the period ended  29  March  1996
have  been  taken  from,  but do not  constitute  the  group's
statutory  accounts for that period. Those statutory  accounts
have been reported on by the group's auditor and delivered  to
the  Registrar  of Companies. The report of  the  auditor  was
unqualified and did not contain a statement under Section  237
(2) or (3) of the Companies Act 1985.
 
 
Consolidated Cash Flow Statement
for the period ended 28 March 1997
 
                                                   1997        1996
                                                  #'000       #'000
  Operating activities
  Net cash inflow from 
  continuing activities                           2,369       2,081
  Net cash inflow from discontinued 
  operating activities                              (68)        448
                                              ---------------------
  Cash inflow from operating activities           2,301       2,529
                                              ---------------------
 
  Returns on investments and servicing of finance
  - interest paid                                   (76)        (94)
                              
  Taxation
  - UK corporation tax paid                        (604)       (263)
 
  Capital expenditure
  Payments to acquire intangible fixed assets         -         (40)
  Payments to acquire tangible fixed assets      (1,752)       (950)
  Proceeds from sale of tangible fixed assets         -         179
                                              ---------------------
                                                 (1,752)       (811)
                                              ---------------------
  Acquisitions and disposals                        141           -
  
  Equity dividends paid                            (466)       (272)
 
  Cash (outflow)/inflow before use of liquid  ---------------------
  resouces and financing                           (456)      1,089
                                              ---------------------
  Financing
  Issue of ordinary share capital                   108          60
  Repayment of loans                               (197)       (237)
                                              ---------------------
                                                    (89)       (177)
                                              ---------------------
  (Decrease)/increase in cash in the period        (545)        912
                                              ---------------------
 
The  comparative figures for the period ended  29  March  1996
have  been  taken  from,  but do not  constitute  the  group's
statutory  accounts for that period. Those statutory  accounts
have been reported on by the group's auditor and delivered  to
the  Registrar  of Companies. The report of  the  auditor  was
unqualified and did not contain a statement under Section  237
(2) or (3) of the Companies Act 1985.
 
Reconciliation of operating profit to operating cashflows
 
                                1997                    1996
                         Continuing  Discontinued  Continuing  Discontinued
                            #'000        #'000       #'000        #'000
 
Operating profit 
before interest             2,419         (26)      1,863          36
Depreciation/write offs of 
tangible fixed assets         364          33         321          42
Depreciation of intangible 
fixed assets                   23           -          12           -
Loss on sale of tangible 
fixed assets                    -           -          18           -
(Increase)/decrease 
in stocks                    (125)        (71)         41          57
(Increase)/decrease 
in debtors                   (626)         69         (17)      1,143
Increase/(decrease) 
in creditors                  314         (73)       (157)       (830)
                         --------------------------------------------
Net cash inflow from 
operating activities        2,369         (68)      2,081         448
                         --------------------------------------------
 
  Analysis of net funds
                                 At               Other non-    At
                           30 March   Cash flow   cash changes  28 March
                               1996                             1997
                              #'000     #'000        #'000     #'000
 
Current accounts              2,203      (149)           -     2,054
Advance payments                972      (396)           -       576
                           -----------------------------------------
Cash in hand and at bank      3,175      (545)           -     2,630
 
Debt due after one year      (1,345)        -          231    (1,114)
Debt due within one year       (214)      197         (231)     (248)
                           -----------------------------------------
Net funds                     1,616      (348)           -     1,268
                           -----------------------------------------
 
Taxation                                              1997      1996
                                                     #'000     #'000
United Kingdom corporation tax at 33% (1996: 33%):     723       587
Under/(over) provision in respect of prior years:        2       (41)
                                                   -----------------
                                                       725       546
                                                   -----------------
 
The  corporation  tax  charge for the current  period  has  been
calculated on the basis that there is no relief for the goodwill
of  #108,000 written off on the disposal of the trade and assets
of A1 International Limited.
 
The  comparative figures for the period ended 29 March 1996 have
been  taken  from,  but do not constitute the group's  statutory
accounts  for  that period. Those statutory accounts  have  been
reported  on  by  the  group's  auditor  and  delivered  to  the
Registrar   of  Companies.  The  report  of  the   auditor   was
unqualified  and did not contain a statement under  Section  237
(2) or (3) of the Companies Act 1985.
 
 
END