MORGAN CRUCIBLE
CONSOLIDATED PROFIT AND LOSS STATEMENT
for the six months ended 4 July 2004 
 
 Restated* Restated*
 Unaudited Unaudited
 Six months Six months Year
 2004 2003 2003
  -------------------------------------
 Note £m £m £m
 -------------------------------------
Turnover
Continuing operations 371.4 379.2 744.3
Discontinued operations 34.8 63.4 105.3
 -------------------------------------
Group turnover  2 406.2 442.6 849.6
 
--------------------------------------------------------------------------------
|Operating profit before goodwill |
|amortisation and operating  |
|exceptionals |
|Continuing operations 25.2 19.0 38.3|
|Discontinued operations (0.3)  2.4 4.3|
--------------------------------------------------------------------------------
 24.9 21.4 42.6
Operating exceptionals (17.5) (15.3) (67.3)
--------------------------------------------------------------------------------
|Operating profit/(loss) before 7.4 6.1 (24.7)|
|goodwill amortisation |
|Goodwill amortisation (3.3) (3.9) (7.5)|
--------------------------------------------------------------------------------
 
Operating profit/(loss)
Continuing operations 6.8 2.3 (29.3)
Discontinued operations (2.7) (0.1) (2.9)
 -------------------------------------
Group operating profit/(loss) 2 4.1 2.2 (32.2)
  -------------------------------------
 
Corporate exceptional items 3
Continuing operations
-Disposal of fixed assets (4.0) (0.2) (2.3)
-Loss on sale of operations (0.5) (3.7) (6.5)
Discontinued operations
-Loss on sale of businesses (37.8) (11.7) (21.3)
 -------------------------------------
  (42.3) (15.6) (30.1)
 -------------------------------------
(Loss) on ordinary activities (38.2) (13.4) (62.3)
before interest and taxation -------------------------------------
 
Net finance charges and similar (6.9) (7.6) (15.7)
items -------------------------------------
(Loss) on ordinary activities (45.1) (21.0)  (78.0)
before taxation
Taxation 4 (2.9) (4.1) 2.4
 -------------------------------------
(Loss) on ordinary activities (48.0) (25.1)  (75.6)
after taxation
Equity minority interest (0.8) (0.7) (1.4)
 -------------------------------------
Net (loss) attributable to The (48.8) (25.8)  (77.0)
Morgan Crucible Company plc
 
Preference dividends on - (1.1) (1.2)
non-equity shares -------------------------------------
 
Retained (loss) for the period (48.8)  (26.9) (78.2)
================================================================================
 
 
Earnings/(loss) per share 5
Underlying earnings per share
- before goodwill amortisation 4.7p 3.4p 9.6p
- after goodwill amortisation 3.4p 1.7p 6.4p
Underlying diluted earnings per 3.4p 1.7p 6.3p
share 
After all post tax exceptionalitems: 
Basic (loss) per share
- before goodwill amortisation (16.7p) (9.9p) (30.5p)
- after goodwill amortisation (17.9p) (11.6p) (33.7p)
Diluted (loss) per share (17.9p) (11.6p) (33.7p)
 
 
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 4 July 2004 Six months Six months Year 
 2004 2003 2003
 -------------------------------------
 £m £m £m
 -------------------------------------
Net (loss) attributable to shareholders (48.8) (25.8) (77.0)
Foreign currency translation (8.1) 8.2 4.5
Deficit on write-off of revalued assets - - (0.3)
Return on investments - - 0.3
  -------------------------------------
Total recognised losses relating to the (56.9) (17.6) (72.5)
period 
================================================================================
* Restated in respect of discontinued operations
 
 
CONSOLIDATED BALANCE SHEET
as at 4 July 2004
 
 Unaudited Unaudited
 Six months Six months Year
 2004 2003 2003
 -------------------------------------
 Note £m £m £m
  -------------------------------------
Fixed assets
Intangible assets - goodwill 95.3 118.3 112.2
Tangible assets 323.5 415.9 386.3
Investment in associated 0.7 1.5 -
undertakings and joint ventures
Other investments 5.5 5.8 6.3
 -------------------------------------
 425.0 541.5 504.8
 -------------------------------------
 
Current assets
Stocks 130.3 150.4 131.5
-------------------------------------------------------------------------------
|Debtors - due within one year 165.7 204.9 178.2|
| - due after one year 31.9 25.9 28.5|
-------------------------------------------------------------------------------
Total debtors 197.6 230.8 206.7
Cash at bank and in hand 51.3 73.0 57.9
  -------------------------------------
 379.2 454.2 396.1
Current liabilities 6 235.1 292.3 253.1
 -------------------------------------
 
Net current assets 144.1 161.9 143.0
 -------------------------------------
 
Total assets less current 569.1  703.4 647.8
liabilities -------------------------------------
 
Creditors - amounts falling due
after more than one year -------------------------------------
Borrowings  149.3 216.2 230.6
Grants for capital expenditure 0.7 1.0 0.6
 -------------------------------------
 150.0 217.2 231.2
Provisions for liabilities and charges 150.3 148.1 156.1
 -------------------------------------
 300.3 365.3  387.3
 -------------------------------------
 
NET ASSETS 268.8 338.1 260.5
================================================================================
 
Capital and reserves
Called up share capital (including 74.8 88.3 60.3
non-equity interests)
Share premium account 84.1 44.4 44.4
Revaluation reserve 3.1  7.4 3.7
Other reserves 1.4 1.4 1.4
Special reserve 18.5 - 6.0
Capital redemption reserve 28.0 -  28.0
Profit and loss account 50.1 186.3 106.4
 -------------------------------------
 260.0 327.8 250.2
Minority interest
 Equity 8.7 10.2 10.2
 Non-equity 0.1 0.1 0.1
 -------------------------------------
  8.8 10.3 10.3
 -------------------------------------
 
CAPITAL EMPLOYED 268.8 338.1 260.5
================================================================================
MOVEMENT IN SHAREHOLDERS' FUNDS
for the six months ended 4 July 2004
 Six months Six months Year
  2004 2003 2003
 -------------------------------------
 £m £m £m
 -------------------------------------
Net (loss) attributable to shareholders (48.8) (25.8) (77.0)
(Deficit) on write-off of revalued - - (0.3)
assets
Return on investments - -  0.3
Dividends - (1.1) (1.2)
 -------------------------------------
 (48.8) (26.9) (78.2)
Goodwill written back to profit and loss 12.5 6.4 11.8
account on disposals
Redemption of Preference shares - - (28.0)
Issue of Ordinary shares 54.2 -  -
Foreign currency translation (8.1) 8.2 4.5
 -------------------------------------
Net increase/(decrease) to shareholders' 9.8 (12.3) (89.9)
funds
Opening shareholders' funds 250.2 340.1 340.1
 -------------------------------------
Closing shareholders' funds 260.0 327.8 250.2
================================================================================
 
 
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 4 July 2004
 
 Six months Six months Year
 Unaudited Unaudited
 2004 2003 2003
 ---------------------------------------------------
 Note £m £m £m £m £m £m
 ---------------------------------------------------
Net cash inflow (a) 18.6 8.4 45.3
from operating 
activities
Returns on
investments and 
servicing of
finance
Interest 0.7 1.1 2.3
received
Interest paid (9.3) (6.8) (15.8)
Preference - (1.1) (2.3)
dividends paid ---------------------------------------------------
 (8.6) (6.8) (15.8)
 
Taxation 1.2 (1.1) (6.0)
 
Capital
expenditure and
financial
investments
Purchase of (11.9) (14.7) (34.3)
tangible fixed
assets
Proceeds on sale 8.4 1.6 2.0
of tangible fixed
assets
Purchase of (0.3) (0.6)  (0.6)
investments
Disposal of 0.2 0.3 0.9
investments ---------------------------------------------------
 (3.6) (13.4) (32.0)
Acquisitions and
disposals
Deferred (0.1) (0.3) (0.4)
consideration for
prior year
acquisitions
Disposal of 26.3 26.9 32.8
businesses ---------------------------------------------------
 26.2 26.6 32.4
 
Cash inflow before
use of liquid
resources and 33.8 13.7 23.9
financing
 
Management of 1.6 5.5 10.3
liquid resources
 
Financing
Increase in 54.2 - -
Ordinary share
capital
Redemption of - -  (28.0)
Preference
shares
Increase in bank 6.0 244.1 274.2
loans
Repayment of bank (99.5) (243.1) (270.5)
loans ---------------------------------------------------
 (39.3) 1.0 (24.3)
 
Net (decrease)/ (3.9) 20.2 9.9
increase in cash 
================================================================================
 
Reconciliation of
net cash flow to
movement in net
borrowings
Net (decrease)/ (3.9) 20.2 9.9
increase in cash
Cash flow from  93.5 (1.0) (3.7)
decrease/
(increase) in
loans
Cash flow from (1.6) (5.5) (10.3)
(decrease) in ---------------------------------------------------
deposits
Change in net
borrowings
resulting from
cash flows 88.0 13.7 (4.1)
Exchange 2.0 1.4 6.4
movement ---------------------------------------------------
 
Movement in net 90.0 15.1 2.3
borrowings during
the period
Opening net (249.3) (251.6) (251.6)
borrowings ---------------------------------------------------
 
Closing net (159.3) (236.5) (249.3)
borrowings 
================================================================================
 
CONSOLIDATED FREE CASH FLOW
for the six months ended 4 July 2004
 Six months Six months 
 Unaudited Unaudited Year
 2004  2003 2003
 ------------------------------------
 Note £m £m £m
 ------------------------------------
Net cash inflow from operating (a) 18.6 8.4 45.3
activities
Net interest paid (8.6) (5.7) (13.5)
Taxation 1.2 (1.1) (6.0)
Net dividends paid - (1.1) (2.3)
 ------------------------------------
 
Post dividend cash flow 11.2 0.5 23.5
Net capital expenditure (3.5) (13.1) (32.3)
 ------------------------------------
 
Free cash flow 7.7 (12.6) (8.8)
================================================================================
 
 (a) Reconciliation of operating profit/(loss) to net cash inflow from
 operating activities
 Six
  months Six
 Contin- Discon- 2004 months Year
 uing tinued Total 2003 2003
 -------------------------------------------------
 £m £m £m £m £m
 -------------------------------------------------
 Operating profit/(loss) 6.8 (2.7) 4.1 2.2 (32.2)
 Depreciation 16.9 1.8 18.7 22.9 43.4
 Amortisation of 3.1 0.2 3.3 3.9 7.5
 goodwill
 Loss on sale of plant 0.5  - 0.5 - 0.6
 and machinery
 Exceptional non-cash 0.2 - 0.2 0.6 15.2
 operating costs
 (Increase)/decrease in (12.9) (0.9) (13.8) (7.8) 3.3
 stocks
 (Increase)/decrease in (6.7) (2.0) (8.7) (13.3) 13.3
 debtors
 Increase/(decrease) in 9.6 3.0 12.6 (0.4) (15.4)
 creditors
 Increase/(decrease) in 1.6 0.1 1.7 0.3  9.6
 provisions 
 -------------------------------------------------
 
 Net cash inflow from 19.1 (0.5) 18.6 8.4 45.3