REC Record Plc

RNS No 9469j
REECE PLC
29th July 1998

 
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 1998
 
CHAIRMAN'S STATEMENT
 
During the six month period to 30 June 1998 the Group made a
loss before exceptional costs of #30,000 compared with a
profit of #24,000 in the same period last year.   The
exceptional costs of #194,000 relate to vacant properties and
rationalisation of the Fastener business.
 
APP
#'000          6 months ended    6 months ended
                   30/6/98          30/6/97

Sales             1,677             1,711
Operating           132               112
profit
 
The  division's performance improved on the back of  increased
margins.   Nevertheless, the strength of sterling continued to
have an adverse impact on export business.
 
CYCLES
#'000          6 months ended    6 months ended
                   30/6/98          30/6/97

Sales              2,865             3,382
Operating             58                75
profit
 
Profitable  sales  of budget priced bikes  were  difficult  to
achieve, but sales of Univega mountain bikes were strong.
 
FASTENERS
#'000          6 months ended    6 months ended
                   30/6/98          30/6/97

Sales              1,758             2,186
Operating            (80)              (56)
profit (loss)
 
The  restructuring programme of depot closures and elimination
of unprofitable business has continued.   This process has led
to a high level of exceptional costs.
 
SERVICE ENGINEERS
#'000          6 months ended    6 months ended
                   30/6/98          30/6/97

Sales             1,657             1,732
Operating            55               172
profit
 
The  strength  of sterling and the Asian crisis  continues  to
have  a  major  impact  on orders. Export  markets  have  been
difficult  and  profit margins have fallen,  whilst  our  home
market  customers  have been hit by a flood of  cheap  ceramic
imports.
 
DIVIDEND
 
The  Directors are not in a position to recommend the  payment
of a dividend.
 
OUTLOOK
 
We  expect  a  slower rate of home sales from the  Door  Panel
division in the second half.  The Cycle division continues  to
concentrate on improving profit margins and this is  beginning
to show results.  The rationalisation of the Fastener business
will  be  completed  by  the end  of  the  year.   At  Service
Engineers  orders from our traditional ceramic customers  will
continue  to  be  difficult to secure.  However,  longer  term
benefits   should   flow  from  diversification   into   glass
decorating markets.  It remains our overall strategy to retain
only businesses making a satisfactory return.
 
Contact Mike Norris on 01634 373551.

INTERIM STATEMENT OF THE UNAUDITED CONSOLIDATED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 1998
 
                                  Unaudit  Unaudit  Audited
                                       ed       ed     Year
                                        6        6    ended
                                   months   months  31.12.97
                                    ended    ended         
                                  30.6.98  30.6.97
                                                    
                                 #'000    #'000     #'000
                                                    
TURNOVER                         7,957    9,011     18,456
Cost of sales                    (5,552)  (6,237)   (13,385)
                                                    
                                 ______   ______    ______
GROSS PROFIT                     2,405    2,774     5,071
Overheads                        (2,388)  (2,691)   (5,005)
Exceptional costs                (194)    (44)      (155)
                                 ______   ______    ______
OPERATING PROFIT (LOSS)          (177)    39        (89)
Interest                         (47)     (59)      (149)
                                 ______   ______    ______
LOSS ON ORDINARY ACTIVITIES      (224)    (20)      (238)
BEFORE TAXATION
Taxation                         -        -         -
                                 ______   ______    ______
LOSS ON ORDINARY ACTIVITIES      (224)    (20)      (238)
AFTER TAXATION
Dividend                         -        -         -
                                 ______   ______    ______
                                                    
RETAINED LOSS FOR THE PERIOD     (224)    (20)      (238)
                                 ______   ______    ______
                                                    
EARNINGS PER ORDINARY SHARE       (0.13p)  (0.01p)  (0.13p)
                                 ______   ______    ______
                                                    
Notes :

(i)    The turnover, gross profit and operating profit are all
  derived from the continuing operations.
 
(ii)    The calculation of the earnings per ordinary share  is
  based  on the loss on ordinary activities after taxation  of
  #224,000 (1997: #20,000) and on 177,054,416 ordinary  shares
  (1997:  177,054,416), being the weighted average  number  of
  ordinary  shares in issue during the period and  during  the
  year ended 31 December 1997.
 
(iii)      The above financial information does not amount  to
 full  accounts  within  the meaning of  section  255  of  the
 Companies  Act  1985.  Full accounts for the  year  ended  31
 December 1997, which include an unqualified audit report, have
 been delivered to the Registrar of Companies.
 
END

IR ALLVDDDITFAT

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