SPIRENT PLC
Consolidated Profit and Loss Account
                                                            Year to
 GBP million             Six months to 30 June                31
                                                           December
                          ---------------------  -------   --------
                                   2003             2002       2002
                         Before
                         except   Except-
                          ional    ional
                   Notes  items    items   Total   Total      Total
  Turnover:
  Group and
  share of
  joint venture           251.6        -   251.6   348.1      634.5
 
  Less: share of
  joint
  venture's
 
  turnover                (22.4)       -   (22.4)  (37.1)    (75.6)
                         ------- -------  ------- -------   -------
  Turnover          1,2   229.2        -   229.2   311.0      558.9
                    ===  ======= =======  ======= =======   =======
 
  Operating         1,2     9.5    (4.9)     4.6     6.2    (970.5)
  profit/(loss)
  ----------------  ---  ------- -------  ------- -------   -------
  Operating
  exceptional
  items
 
  Goodwill                    -        -       -       -      923.3
  impairment
 
  Other               3       -      4.9     4.9     2.3       41.6
 
  Goodwill                  4.8        -     4.8    26.7       56.1
  amortisation
 
  Operating
 
  profit before
  goodwill
  amortisation
  and
 
  exceptional       1,2    14.3        -    14.3    35.2       50.5
  items
  ----------------  ---  ------- -------  ------- -------   -------
 
  Income from
 
  interests in
  joint
 
  ventures                  2.7        -     2.7     2.8        7.4
 
  Income from
 
  interests in
  associates
  less goodwill
 
  amortisation              0.8        -     0.8   (0.1)        0.8
                         ------- -------  ------- -------   -------
 
  Operating
 
  profit/(loss)
  of the
  Group, joint
  ventures and
 
  associates               13.0    (4.9)     8.1     8.9    (962.3)
 
  Non-operating
  exceptional
  items
 
  Profit/(loss)
  on disposal of
  operations                  -      1.6     1.6   (24.8)    (48.4)
 
  Provision
  against
  investment
 
  in own shares               -        -       -       -     (30.1)
                         ------- -------  ------- -------   -------
 
 
  Profit/(loss)            13.0    (3.3)     9.7   (15.9) (1,040.8)
  before
  interest
 
  Net interest
  (payable) and
 
  similar                 (5.0)   (14.3)   (19.3)  (6.5)     (12.3)
  charges
                         ------- -------  ------- -------   -------
 
  Loss before               8.0   (17.6)   (9.6)   (22.4) (1,053.1)
  taxation
 
  Taxation            4     3.8    (1.1)     2.7     9.0       26.9
  charge/(credit)
                    ---  ------- -------  ------- -------   -------
 
  Loss after                4.2   (16.5)   (12.3)  (31.4)  (1,080.0)
  taxation
 
  Minority
  shareholders'
  interest
 
  - equity                  0.1        -     0.1       -        0.1
 
  Minority
  shareholders'
  interest
 
  - joint                     -        -       -     0.1        0.3
  venture
                         ------- -------  ------- -------   -------
 
  Loss
  attributable
  to
 
  shareholders              4.1   (16.5)   (12.4)  (31.5)  (1,080.4)
 
  Dividends                   -        -       -    12.5       12.5
                         ------- -------  ------- -------   -------
 
  Loss for the              4.1   (16.5)   (12.4)  (44.0)  (1,092.9)
  period
                         ======= =======  ======= =======  ========
 
  Basic and
 
  diluted loss
  per
 
  share (pence)       5                    (1.34)  (3.42)  (117.12)
 
  Headline
 
  earnings per
  share
 
  (pence)             5                     0.96    2.42       3.40
 
  Net dividend                                 -    1.35       1.35
  per share
  (pence)
 
 
 Consolidated Statement of Total Recognised Gains and Losses
 
                                                          Year to
  GBP million                  Six months to 30 June    31 December
                               ---------------------    -----------
                                      2003      2002           2002
 
  Loss attributable to              (12.4)    (31.5)      (1,080.4)
  shareholders
 
  Gain on lapsed options               0.9       4.0            5.2
 
  Exchange adjustment on               5.0     (9.7)         (23.0)
  subsidiaries,
  joint ventures and
  associates
 
  Taxation on exchange               (0.2)         -            0.1
  adjustment
                                  --------   -------      ---------
  Total recognised gains             (6.7)    (37.2)      (1,098.1)
  and losses
                                  ========   =======      =========
 
 
 Consolidated Balance Sheet
 
  GBP million                 At 30 June             At 31 December
                       -----------------------     ----------------
                         2003             2002                2002
  Fixed
  assets
 
  Intangible            107.9            943.4               113.6
  assets
 
  Tangible              101.4            123.5               110.0
  assets
 
  Investments
 
  Investment
  in joint
  ventures
 
  Share of       0.3             72.1                72.9
  gross
  assets
 
  Share of         -            (24.8)             (22.8)
  gross
  liabilities
               -----            -----               -----
                 0.3             47.3                50.1
 
  Investment    13.5             18.5                13.3
  in
  associates
 
  Other          2.1             32.2                 2.1
  investments
               -----            -----               -----
 
                         15.9             98.0                65.5
                       ------           -------             ------
  Total fixed           225.2           1,164.9              289.1
  assets
 
  Current
  assets
 
  Stocks        59.6             74.5                61.5
 
  Debtors       87.8            139.0                97.3
 
  Investments      -              0.1                 0.1
 
  Cash at       21.1             26.0                83.5
  bank and in
  hand
 
               -----            -----               -----
 
               168.5            239.6               242.4
               -----            -----               -----
 
  Current
  liabilities
 
  Creditors    101.4            138.9               107.5
  due within
  one year
 
  Loans and      3.4              3.1                 1.8
  overdrafts
               -----            -----               -----
 
               104.8            142.0               109.3
               -----            -----               -----
 
 
  Net current            63.7             97.6                133.1
  assets
                        -----           ------               ------
  Assets less           288.9          1,262.5                422.2
  current
  liabilities
 
  Long term
  liabilities
 
  Creditors
  due after
  more than
  one year            (125.6)          (179.9)              (252.6)
 
  Provisions
  for
  liabilities
  and
 
  charges              (26.2)            (1.3)               (28.4)
                        -----          -------               ------
 
  Assets less           137.1          1,081.3                141.2
  liabilities
                        =====          =======               ======
 
  Shareholders'         135.0          1,079.3                139.1
  funds -
  equity
 
  Minority                2.1              2.0                  2.1
  interests -
  equity
                        -----          -------               ------
 
                        137.1          1,081.3                141.2
                        =====          =======               ======
 
 
Consolidated Cash Flow Statement
                                                          Year to
  GBP million                  Six months to 30 June    31 December
                               ---------------------    -----------
                                      2003      2002           2002
 
  Net cash inflow from                28.6      40.7           76.9
  operating activities
                                  --------  --------       --------
  Dividends received from                -       0.2            0.2
  joint venture
 
  Dividends received from                -       0.2            0.1
  associates
 
  Returns on investments
  and servicing of
  finance                           (19.0)     (6.1)         (10.8)
 
  Taxation                           (2.3)     (6.4)          (4.2)
 
  Capital expenditure and            (6.3)    (14.1)         (25.8)
  financial investment
                                  --------  --------       --------
 
  Cash inflow before
  acquisitions and
  disposals, equity                    1.0      14.5           36.4
  dividends and financing
 
  Acquisitions and                    60.7      41.5            6.4
  disposals
 
  Equity dividends paid                  -    (27.6)         (40.2)
 
  Management of liquid                 0.1       0.2            0.2
  resources
 
  Financing                        (124.7)    (32.2)           53.8
                                  --------  --------       --------
 
  Net cash                          (62.9)     (3.6)           56.6
  (outflow)/inflow
                                  ========  ========       ========
 
 
 Reconciliation of Net Cash Flow to Movement in Net Debt
 
                                                          Year to
  GBP million                  Six months to 30 June    31 December
                               ---------------------    -----------
                                     2003       2002           2002
 
  Net cash                         (62.9)      (3.6)           56.6
  (outflow)/inflow
 
  Cash outflow/(inflow)
  arising from the change
  in debt and lease
  financing                         125.2       34.5         (51.4)
 
 
  Cash inflow arising
  from the decrease in
  liquid resources                  (0.1)      (0.2)          (0.2)
                                 --------   --------       --------
  Movement arising from              62.2       30.7            5.0
  cash flows
 
  Debt issue costs                  (0.6)          -              -
 
  Loans and finance
  leases acquired with
  subsidiary                            -          -          (0.2)
 
  New finance leases                    -      (0.5)          (0.2)
 
  Exchange adjustment                 0.7        5.7           12.7
                                 --------   --------       --------
 
  Movement in net debt               62.3       35.9           17.3
 
  Net debt at 1 January           (161.8)    (179.1)        (179.1)
                                 --------   --------       --------
 
  Net debt                         (99.5)    (143.2)        (161.8)
                                 ========   ========       ========