*          Strong first half from Distribution

 

*          Aviation recovery continues;  in profit every month since March

 

*          Well funded for acquisitive and organic growth

 

*          Dividend level maintained

 

 

David Mackay, Chief Executive, said:

 

"Once again, Distribution has proven its counter cyclical qualities and delivered an excellent result. The rationalisation of its Scottish branch network has been successfully completed and the operational benefits will continue to flow through.

 

Aviation activity levels continue to improve as we predicted.  Every month since March has been profitable.  Management are vigorously controlling costs and we have a very strong and experienced team in place poised to take advantage of economic recovery and to participate actively in the further industry consolidation we expect to occur.

 

The Group's results are well ahead of the last six months of 2001.  I am confident that we remain on track to continue this trend and to deliver a strong set of results for the full year."

 

 

For further enquiries:

David Mackay, Chief Executive 0131 459 8090

Jonathan Rooper, Cardew & Co 0207 930 0777