Financial performance strongly ahead

Important strategic progress

Well placed for further substantial growth

Umeco plc, an international provider of supply chain and advanced composite materials primarily to the aerospace & defence industries, announces its preliminary results for the year to 31 March 2008.

Key highlights

· Important strategic progress, with focus now on high growth businesses of Composites and Supply Chain; Repair & Overhaul and Chemicals distribution businesses successfully divested

· Excellent organic growth from continuing operations, driven by rising levels of demand in core markets

· Further expansion of Composites through acquisitions of Lincoln and Primco; contribution ahead of expectations

· Significant extension of scope and timeframe of Pattonair's supply chain contract with Rolls-Royce plc, being delivered from dedicated new facility in Derby

Financial highlights - Continuing operations

· Revenue increased by 18.8 per cent to £335.2 million (2007: £282.1 million)

· Adjusted operating profit increased by 26.0 per cent to £27.1 million (2007: £21.5 million)

· Adjusted profit before tax increased by 19.7 per cent to £21.9 million (2007: £18.3 million)

· Adjusted earnings per share increased by 14.0 per cent to 36.7 pence (2007: 32.2 pence)

· Proposed final dividend of 11.0 pence per share, up 10.0 per cent (2007: 10.0 pence), resulting in a total dividend of 17.0 pence per share, up 9.7 per cent (2007: 15.5 pence)

· Strong balance sheet, with investment in acquisitions (£34.5 million) offset by proceeds from divestment programme (£49.0 million). Closing net debt of £57.6 million (2007: £51.8 million); gearing 35.5 per cent (2007: 35.2 per cent)

Current Trading and Prospects

· Demand for composite materials in the core markets of aerospace, high end automotive and wind energy remains robust

· Buoyant demand for supply chain services with civil aerospace order intake continuing to grow; Boeing and Airbus order books at record levels

· Key partnership agreement recently announced with Airbus and others for major aerospace research programme for Next Generation Composite Wing

Clive Snowdon, Chief Executive of Umeco plc, said:

"The last year has seen significant strategic change. Following a successful divestment programme, we are now focused exclusively on the faster growing activities of Composites and Supply Chain.

"Our Composites business has shown strong organic growth and has been considerably strengthened by two acquisitions that are highly complementary to our existing aerospace activities. Our partnership with Airbus on the Next Generation Composite Wing research programme emphasises the technical strength of ACG and its exciting potential for growth in the civil aerospace sector.

"Our Supply Chain business has also shown excellent organic growth, both from existing and newly awarded contracts. During the year, Pattonair secured a significant extension of its major contract with Rolls-Royce plc, a relationship that has been further strengthened by the completion of our new dedicated facility in Derby.

"Demand for both our Composites and Supply Chain products and services continues to be buoyant across all our core markets of aerospace, high end automotive and wind energy.

"Recent strategic activity and investment has created a lean, well focused and financially robust Group capable of high rates of organic growth. With strong forward order books, this leaves us exceptionally well positioned for another successful year."

There will be a meeting for analysts at 09.30 this morning at UBS, 1 Finsbury Avenue, EC2M 2PP. Should you wish to attend please contact Vicky Watkins on 020 7645 3970.

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