P R E L I M I N A R Y R E S U L T S

March 2005

£ million 2004 2003 % inc.

Group sales 149.0 146.1 2.0%

Operating profit 21.4 21.1 1.4%

Operating margin 14.3% 14.4%

Net interest (2.7) (3.0)

Profit before tax 18.6 18.0 3.2%

Earnings per share 8.3p 7.9p 5.1%

Dividend per share 4.0p 3.5p 14.3%

Financial highlights 2004

Key features

Strong volume growth

Strong Cutisin performance

Adverse external factors

Further reduction in net debt

Investment in capacity

Sales analysis 2004

Sales change vs 2003

2004

Volume 7.2%

Price / Mix(2.0)%

Operations 5.2%

Foreign Exchange(3.2)%

Total 2.0%

Regional sales by destination 2004

Sales change vs 2003

Very good growth in UK / Ireland

Continued pricing pressure in the UK

Strong Devro growth in Western European markets

Strong Cutisin growth in Eastern European markets

Operations

2004£m Volume Price / Mix Total Exchange Total

Europe 88.2 5.0% (2.3)% 2.7% (0.9)% 1.8%

Regional sales by destination 2004

Sales change vs 2003

Market share gain in domestic US market

Increasing volumes at larger customers

Steady performance in Latin America

Impact of weak US$

Operations

2004£m Volume Price / Mix Total Exchange Total

Americas 30.6 15.9% (5.3)% 10.6% (11.5)% (0.9)%

Regional sales by destination 2004

Sales change vs 2003

Solid performance in Australia / New Zealand

Volume gains in South East Asia

Continued growth in Japan

Operations

2004£m Volume Price / Mix Total Exchange Total

Asia / Pacific 30.2 4.5% 2.3% 6.8% (1.4)% 5.4%

Regional sales by destination 2004

Sales change vs 2003

Full Year2004

£m VolumePrice /

Mix Exchange Total

Europe 88.2 5.0% (2.3)%(0.9)%

1.8%

Americas 30.6 15.9% (5.3)%(11.5)%

(0.9)%

Asia / Pacific 30.2 4.5% 2.3%(1.4)%

5.4%

Total 149.0 7.2% (2.0)%(3.2)%

2.0%

Profit and loss 2004

£ million 2004 2003

Group sales 149.0 146.1

Operating profit 21.4 21.1

Operating margin 14.3% 14.4%

Net interest (2.7) (3.0)

Profit before tax 18.6 18.0

Tax (5.3) (5.2)

Minority interest (0.0) (0.2)

Profit for the year 13.4 12.7

Earnings and dividend 2004

£ million 2004 2003

Earnings per ordinary share

Basic 8.3p 7.9p

Diluted 8.3p 7.9p

Dividend per ordinary share 4.0p 3.5p

Balance sheet

£ million 2004 2003

Fixed assets 93.0 89.2

Net current assets 29.1 25.8

Long term creditors and provisions (49.3) (50.2)

72.8 64.8

Share capital, share premium and reserves 59.8 56.6

Retained earnings 13.0 8.2

72.8 64.8

Minority interest 0.0 0.0

72.8 64.8

Net debt (25.4) (26.7)

Net gearing 34.9% 41.2%

Cash flow

£ million 2004 2003

Net cash inflow from operating activities 28.2 28.7

Net interest paid (3.2) (3.1)

Taxation (5.0) (3.2)

Capital expenditure (11.4) (7.3)

Acquisitions and disposals (1.6) (0.2)

Equity dividend paid (5.8) (5.0)

Net cash flow before financing 1.2 9.9

Issue of share capital 0.4 0.0

Exchange (0.4) (1.3)

Decrease in net debt 1.2 8.6

Interest cover 7.8 7.0

Outlook

New products

2005 trends

Positive outlook