RNS Number:6093T
Drew Scientific Group PLC
24 December 2003






                           DREW SCIENTIFIC GROUP PLC

                                INTERIM RESULTS


Drew Scientific Group PLC ("Drew" or "the Group"), the international healthcare
products manufacturer and supplier announces its interim results for the six
months ended 30 September 2003. Drew produces diagnostics systems and related
consumables for diabetes monitoring, cardiovascular and haematology testing,


Highlights:


*   Sales were #4.6m representing a 24.1% fall compared to 2002
*   Loss after tax attributable to shareholders of #1.12m (2002: loss #0.09m)
*   Operating loss before exceptional item was #0.56m in line with
    expectations
*   Major reorganisation during the period, UK instrument manufacture
    transferred to Dallas
*   EXIM facility renewed until May 2004
*   Cash remains very tight


Commenting on the Group's current trading John Davis, Chairman, said:

"The fall in sales represents a combination of product issues experienced during
the first quarter and severe cash flow difficulties making purchasing of
components difficult and inefficient. Our products remain in demand and we are
overcoming the challenges we face."


For further information please contact:

Drew Scientific Group PLC                          Tel: 01229 432089
John Davis, Chairman
Mike Asher, Chief Executive
David Blain, Finance Director
Brewin Dolphin Securities Limited                  Tel: 0161 214 5553
Richard Evans
Binns and Co Public Relations                      Tel: 020 7786 9600
Peter Binns

Chairman's statement

The results for the six months ended 30 September 2003 show a loss attributable
to shareholders of #1.12m (2002: loss #0.09m) on sales of #4.6m (2002: #6.05m).
The operating loss before the exceptional item was #0.56m (2002: loss #0.14m).
The directors are not recommending the payment of a dividend.

Sales fell by 24.1% compared to the prior year. This reduction occurred as a
result of a fall in the US of 21.9% in local currency and 14.2% in the UK. The
strengthening of the pound against the dollar accounted for an additional loss
of sales in the USA of 3.5%. The fall in sales represents a combination of
product issues experienced during the first quarter and severe cash flow
difficulties making purchasing of components difficult and inefficient.

During the period we took decisive action to improve the Group's trading
position. The USA operation was reorganised and the number of employees reduced
by approx 30%. The UK instrument production facility was closed and instrument
production transferred to Dallas. The UK closure resulted in a one-off closure
cost of #0.5k which is disclosed in the results as an exceptional item. Three of
the Group directors and 2 other UK based staff have been working in the USA for
a number of months leading to improvements throughout the US operation. The
product issues highlighted earlier in the year have been addressed.

We have made good progress in addressing the cashflow issue but cash remains
very tight. This will continue to affect second half trading. The EXIM facility
has been renewed until 31 May 2004. In October 2003 we did a small share placing
which when combined with new loans and facilities provided an additional #0.5k
of working capital for the Group. Equity shareholders' funds increased by #1.25m
during October 2003 when Medisys converted its preference shares into ordinary
shares upon the cessation of the Alzheimer's research and development work.

Your Board has initiated a strategic review to determine the best way to develop
the Group's products and technology and to maximise shareholder value. Our
products remain in demand and we are overcoming the challenges we face.

John Davis
Non- executive Chairman
23 December 2003





Profit and loss account for the half year to 30 September 2003

                                 Unaudited          Unaudited          Audited
                                 Half year          Half year          Full
                                                                       year
                                 to 30 September    to 30 September    to 31
                                 2003               2002               March
                                                                        2003
                                            #'000              #'000     #'000

Turnover - continuing                       4,596              6,052    12,453
Cost of sales                              (3,162)            (3,801)   (8,497)
                                          ---------          --------- ---------
Gross profit                                1,434              2,251     3,956
Net operating expenses
--------------------------------          ---------          --------- ---------
Trading expenses before
goodwill amortisation,
goodwill
impairment and
exceptional item                           (1,852)            (2,091)   (4,329)
Goodwill amortisation                        (142)              (298)     (598)
Goodwill impairment                             -                  -    (5,631)
Exceptional item                             (500)                 -         -
--------------------------------          ---------          --------- ---------
                                           (2,494)            (2,389)  (10,558)
                                          ---------          --------- ---------

Operating loss                             (1,060)              (138)   (6,602)
Profit on sale of
freehold land and
buildings                                       -                110       116
Net interest payable                          (89)               (91)     (159)
                                          ---------          --------- ---------

Loss on ordinary
activities before
taxation                                   (1,149)              (119)   (6,645)

Taxation                                       29                 33       146
                                          ---------          --------- ---------

Loss after taxation
attributable to
shareholders                               (1,120)               (86)   (6,499)
Dividend                                        -                  -         -
                                          ---------          --------- ---------
Retained loss                              (1,120)               (86)   (6,499)
                                          ---------          --------- ---------
Loss per share (Note 2)                      (2.0p)             (0.2p)   (12.0p)


Consolidated balance sheet as at 30 September 2003

                           Unaudited            Unaudited            Audited
                           As at 30 September   As at 30 September   As at 31
                                         2003                 2002   March
                                        #'000                #'000       2003
                                                                        #'000
Fixed assets
Intangible assets                       4,957               11,356      5,482
Tangible assets                         1,184                1,198      1,348
                                     ----------           ---------- ----------
                                        6,141               12,554      6,830
Current assets
                                     ----------           ---------- ----------
Stocks                                  3,029                4,154      3,030
Debtors                                 1,975                3,579      3,484
Cash at bank and in hand                  682                  209        546
                                     ----------           ---------- ----------
                                        5,686                7,942      7,060

Creditors: amounts
falling due within one
year                                   (4,410)              (4,450)    (4,828)
                                     ----------           ---------- ----------
Net current assets                      1,276                3,492      2,232
                                     ----------           ---------- ----------
Total assets less current
liabilities                             7,417               16,046      9,062

Creditors: amounts
falling due after more
than one year                            (394)                (804)      (480)
                                     ----------           ---------- ----------
                                        7,023               15,242      8,582
                                     ----------           ---------- ----------

Capital and reserves
Called up equity share
capital                                   556                  556        556
Share premium                          23,524               23,524     23,524
Profit and loss account               (18,307)             (10,088)   (16,748)
                                     ----------           ---------- ----------
Equity shareholders'
funds                                   5,773               13,992      7,332
Minority interest -
non-equity                              1,250                1,250      1,250
                                     ----------           ---------- ----------
Capital employed                        7,023               15,242      8,582
                                     ----------           ---------- ----------


Consolidated cashflow statement for the half year to 30 September 2003

                                      Unaudited       Unaudited       Audited
                                      Half year       Half year       Full
                                                                      year
                                      to 30 September to 30 September to 31
                                      2003            2002             March
                                                                         2003
                                              #'000           #'000     #'000

Net cash inflow/(outflow) from
operating activities
Operating loss                               (1,060)           (138)   (6,602)
Depreciation and
amortisation charges                            304             441     6,571
(Increase)/decrease in
stocks                                          (86)           (369)      404
Decrease/(increase) in
debtors                                       1,319            (401)     (437)
(Decrease)/increase in
creditors                                       (31)           (534)     (780)
                                            ---------       --------- ---------
                                                446          (1,001)     (844)

Returns on investments and servicing
of finance
Interest paid                                   (89)            (91)     (159)

Taxation
UK Corporation tax
received                                        136               -        90

Net capital
receipts/(capital
expenditure)                                    (19)            403       101

Acquisition                                       -            (325)        -

Financing                                      (126)            807       436
                                            ---------       --------- ---------
Increase/(decrease) in
cash                                            348            (207)     (376)
                                            ---------       --------- ---------

Reconciliation to net debt
Increase/(decrease) in
cash during period                              348            (207)     (376)
Decrease in debt and
finance leases                                  126              94        83
                                            ---------       --------- ---------
Change in net funds from
cash flow                                       474            (113)     (293)
Non-cash movements                               79               -        97
                                            ---------       --------- ---------
Movement in net debt
during period                                   553            (113)     (196)
Net debt at start of
period                                       (2,128)         (1,932)   (1,932)
                                            ---------       --------- ---------
Net debt at end of
period                                       (1,575)         (2,045)   (2,128)
                                            ---------       --------- ---------



Notes:

1.  The above results do not represent full accounts within the meaning of
    section 254 of the Companies Act 1985.

2.  The loss per share for the half year to 30 September 2003 has been
    calculated as follows:

                              2003                             2002
              Losses   Weighted      Per share  Losses   Weighted     Per share
                       average no.   amount              average      amount
                       of shares     pence               no.          pence
               #'000                             #'000   of shares
Basic EPS
Loss
attributable
to
shareholders  (1,120)   55,568,764       (2.0p)    (86)  52,450,458       (0.2p)

Effect of
dilutive
securities

Options                          -                                -
                ------      --------    -------   ------   ----------    -------
Diluted EPS   (1,120)   55,568,764       (2.0p)    (86)  52,450,458       (0.2p)
                ------      --------    -------   ------   ----------    -------

3.  The figures for the year to 31 March 2003 are an extract from the full
    accounts for that year which have been filed with the Registrar of Companies
    and on which the auditors gave an unqualified opinion.

4.  The interim financial information has been prepared on the basis of
    accounting policies adopted for the year ended 31 March 2003 as set out in
    the group statutory accounts.

5.  Reconciliation of movement in equity shareholders' funds:

                        Unaudited             Unaudited             Audited
                        Half year             Half year             Full year
                        to 30 September 2003  to 30 September 2002  to 31
                                                                    March
                                                                     2003
                                      #'000                 #'000     #'000

Opening equity
shareholders' funds                   7,332                13,945      13,945
Loss for the year
attributable to equity
shareholders
transferred                          (1,120)                  (86)     (6,499)
from reserves
Foreign exchange
translation differences                (439)                 (702)       (949)
New shares issued                         -                   835         835
                                    ---------             ---------   ---------
Closing equity
shareholders' funds                  (5,773)               13,992       7,332
                                    ---------             ---------   ---------

6.  The interim statement is being sent to all shareholders and is available
    from the registered office of the Company: Sowerby Woods Industrial Estate,
    Park Road, Barrow in Furness, Cumbria LA14 4QR.






                      This information is provided by RNS
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