REG-Clyde Process Solutions PLC: Final Results

Clyde Process Solutions plc

("CPS" together with its subsidiaries, the "Group")

Preliminary Results Statement for the year ended 28 February 2009

Clyde Process Solutions plc (AIM: CPSP), a provider of customer-driven,
material handling solutions for process industries, announces its preliminary
results for the year ended 28 February 2009, a period in which the Group has
delivered record performance in a challenging economic environment.

Financial highlights

- Group revenue increased 33% to £82.0 million (2008: £61.6 million)

- Operating profit before exceptionals increased 21% to £6.3 million (2008: £
5.2 million)

- Profit before tax increased 62% to £5.5 million (2008: £3.4 million)

- EBITDA before exceptionals increased 10% to £7.1 million (2008: £6.5 million)

- Fully diluted EPS rose 16% to 9.28p (2008: 8.03p)

The preliminary results cover, for the first time, twelve months of trading for
the Group's combined entities, MAC Equipment ("MAC"), which was acquired in
April 2007, and Clyde Materials Handling ("CMH").

Operational highlights

- Full integration of the Group's combined entities in North America,
generating significant order wins

- Strong forward order book of £28.1 million at the year end (2008: £25.0
million), which has risen to £32.0 million at the end of April 2009

- Full strategic review of operations successfully completed and yielding
results

- Agreed revised banking facility to provide long-term funding and suitable
levels of headroom

- Strongly diversified strategy across technologies, customer markets and
geographical territories

Commenting on the results, Jim McColl, Chairman of Clyde Process Solutions plc
said: "Through the implementation of a well diversified strategy, which has
been complemented by focusing on customer contact, costs, credit and cash, the
Group has been able to deliver record results in what has been a challenging
macro-economic environment."

"By fully integrating the Group's combined entities in North America we have
been able to secure significant orders, particularly in the food industry, and
we believe that this combination will continue to generate contract wins across
our other geographical territories. Our key customer markets continue to seek
solutions that can reduce energy and the environmental impact of their
operations and we believe that our Group is well positioned with the
technologies, market focus and global network to solve these challenges, as
well as building on these record results."

- Ends -

For further information please contact:

Clyde Process Solutions plc

Alex Stewart, Chief Executive Tel: +44 (0) 1355 575 000

www.clydeprocesssolutions.com

Nominated Adviser

James Caithie Tel: +44 (0) 207 492 4777

Dowgate Capital Advisers Limited

Broker

Chris Hardie Tel: +44 (0) 207 398 1600

Arden Partners

Media enquiries

Abchurch Tel: +44 (0) 207 398 7719

George Parker

george.parker@abchurch-group.com

Chairman's and Chief Executive's Statement

We are pleased to present our financial results for the year ended 28 February
2009, a period in which Clyde Process Solutions plc has delivered record
performance in a challenging economic environment.

For the first time, these results reflect a full twelve months of trading for
the Group's combined entities, MAC and CMH. MAC was acquired in 2007 and has
proven to be an excellent acquisition for the Group. During the period under
review, the Group has fully integrated its North American operations to form a
singular presence across all key customer markets. The benefits of this
combination can be seen through securing approximately £13 million of contracts
in the US sugar industry alone, which was achieved by blending the Group's
pneumatic conveying technology and process expertise with its sales network in
this territory. The Group aims to achieve full integration of its global
operations in the forthcoming financial year.

During the second half of the financial year, the Group experienced a softening
in trading conditions as a direct result of the slowdown of the global economy,
particularly in the iron and steel industry, where two substantial contracts
from European steel plants were postponed. To address this issue the Board
instigated, in January 2009, a full strategic review of the Group's operations,
as well as four key initiatives focused on customer contact, controlling costs,
credit control procedures and managing cash.

Since the implementation of these key initiatives, the Group has successfully
managed to convert orders and increase its pipeline of prospects, as well as
managing costs, credit and cash.

The Board is pleased to report that as a result of these strategic decisions,
which have been complemented by underlying strategies, the Group has generated
and delivered record levels of order intake, revenue, profits and earnings.
Furthermore, the results for the financial year would have been even stronger
if macro-economic conditions had remained buoyant.

The diversification across pneumatic conveying and air filtration technologies,
key customer markets and geographical territories has been one of the Group's
greatest strengths. The combination of CPS's entities has enabled the Group to
broaden its expertise in North America and key customer markets such as food
and chemicals, where the Group continues to experience strong demand for its
solutions. The enlarged presence in North America accounts for over 70% of
Group revenue, which has had a positive impact on overall financial performance
due to the strengthening of the US dollar against a weakening sterling.

The Board remains confident that the enlarged Group will continue to generate
significant synergies in the forthcoming financial year across all geographical
territories.

Performance

The Group's financial performance has reached record levels in the last twelve
months, which has been achieved, in part, by adopting a global strategy focused
on solving energy and environmental issues for an array of key customer
markets, which include food, chemicals, metals, minerals and grain. The
financial results include, for the first time, twelve months trading for the
enlarged Group.

In 2009, total Group revenue grew by £20.4 million to £82.0 million, an
increase of 33% on last year (2008: £61.6 million). Operating profit before
exceptionals grew by 21% to £6.3 million (2008: £5.2 million), with profits
attributable to equity shareholders for the year also rising by 23% to £3.7
million (2008: £3.0 million). In addition, Group Earnings Before Interest, Tax,
Depreciation and Amortisation (EBITDA) before exceptionals for the year have
risen by 10% to £7.1 million (2008: £6.5million). If the results for the
enlarged Group in the year ended 29 February 2008 had included a full twelve
months trading for CPS North America, rather than ten and a half months
accounted, performance against the period under review would still have shown
significant growth in revenue and profits.

The fully diluted earnings per share (EPS) rose to 9.28p from the previous year
comparative of 8.03p, equating to a 16% increase. This comparison emphasises
the earnings enhancing nature of the MAC acquisition. Furthermore, the impact
of the strengthening of the US dollar against a weakening sterling has
generated a significant impact to the financial performance of the Group. With
over 70% of Group revenues emanating from North America, CPS has benefited £
0.7million at an operating profit level.

In addition, as part of the funding requirement for the acquisition of MAC by
the Group, it was decided to put in place an inter company loan. This loan was
secured in US dollars and was provided by the Group. The Board took the
decision to secure an appropriate form of arrangement which will eliminate the
exchange exposure on this item moving forward. This has locked in a gain of £
1.6 million from this exchange item and has significantly reduced finance costs
for the year ended 28 February 2009.

Strategy

Group strategy in recent years has comprised of three core principles:

- Market driven approach

- Customer focused relationships

- Development and implementation of innovative solutions

The Group has, during the period under review, continued to direct its efforts
in developing and delivering on these three principles.

Through interaction with key customer markets, the Group has identified a range
of common issues that producers in these industries are focused on solving.
These include reducing energy costs, reducing maintenance costs, reducing the
environmental impact of operational processes, as well as improving
productivity - issues which can be solved by deploying CPS's pneumatic
conveying and air filtration technologies.

This well diversified strategy has focused business development, aftermarket
and research and development initiatives in generating a sales pipeline of
prospects which have been converted into orders secured at competitive levels
of contribution.

Board

We would like to thank our colleagues on the Board for their energy, commitment
and continued support during the financial year.

Global Operations

The macro-economic environment has created challenging trading conditions for
each of the Group's global subsidiaries, notably within the iron and steel
industry, where customers have experienced a significant reduction in demand.
The global steel industry has responded to this decline in demand by cutting
production, reducing expansion and capital investments. The Group has seen
these macro-economic conditions impact on the steel industry significantly in
Europe and South America during the period under review.

However, both the Group's European and South American subsidiaries have
responded positively to this development by directing their business
development strategies at other key customer markets, which include food, grain
and minerals whilst also starting to absorb the air filtration technology
portfolio into their businesses.

* North America

CPS's North American operations have played a significant role in the growth
and development of the Group by securing contracts across a range of key
customer markets. Demand for CPS's technologies across the food industry
remains strong, with enquiries and orders being secured throughout the period.
CMH technologies have now been fully integrated with MAC's sales network and
operational infrastructure in North America. Outstanding successes have been
generated in the sugar industry by winning over £13 million of contracts. As
well as consolidating the Group's market leading presence in current key
customer markets, the Group is, for example, accelerating business development
initiatives across the petrochemical industry, as well as focusing on air
filtration and aftermarket sales. While decision making processes remain
changeable, the Group anticipates its North American operations will contribute
significantly to the Group in the forthcoming financial year.

* Europe

European operations have found trading conditions challenging, especially
during the second half of the financial year. In particular, the Group had two
postponements of substantial contracts from European steel plants. The Group's
customers have stressed that these projects will be resurrected in due course
when steel demand returns to sustainable levels. The Group has worked closely
with these customers to conclude the status of work completed and negotiated
compensation due in light of these postponements. These projects, which
involved the Group installing technology to transport coal, are not anticipated
to resume until 2010. These projects represented, at an order intake level,
approximately £5 million to the Group. By focusing on customer contact,
controlling costs, credit procedures and cash, the Group has generated a
nominal profit from its European operations and believes that while trading
conditions will continue to remain challenging in Europe, the focus and energy
on business development strategies will yield positive returns in the
forthcoming financial year.

* Asia

Asian operations have performed steadily, securing contracts predominately
within the metals industry during the period under review. The Group has
increased the resource pool within its Chinese operations as the Group prepares
the business for growth in the forthcoming financial year. The Group has also
initiated business development strategies within the petrochemical and cement
industries, as well as completing a market assessment for air filtration
technologies in this geographical territory. The Board is confident that the
energy and environmental benefits created from the Group's range of air
filtration solutions will be appealing to the Chinese market in the months
ahead. The Group is currently establishing plans to take its air filtration
technologies to the Chinese market.

* South America

South American operations have suffered severely from the slowdown in the
global economy. Several orders were postponed and cancelled in the second half
of the year, particularly in the steel industry. This has resulted in the South
American operation generating a loss for the year. However, the Group's focus
on costs, cash and customer contact in recent months, has enabled it to
diversify into other key customer markets outside of the steel industry, such
as food, chemicals and grain. This has been complemented by introducing the
Group's air filtration solutions into its existing South American sales network
and operational infrastructure. While trading conditions will remain
challenging for the Group's South American operations, the Board is confident
that by developing a more diversified set of business development strategies,
this division will return to profitability in the next financial year.

* South Africa

In November 2008, the Group opened a new operating subsidiary in South Africa,
which is being supported by strong and experienced local management. This new
operating subsidiary has enabled the Group to have a stronger presence in the
South African market, which is rich in both minerals and metals. Three months
after forming this new subsidiary, the team secured a £1 million contract in
the platinum industry, which confirmed the market potential that exists for the
Group's technologies in this territory. The Board believes that in establishing
a solid operating subsidiary in this new territory there is significant
potential for future growth.

People

The Group's record levels of performance in the financial year are testament to
the focus, hard work and dedication of each member of its global teams. We
would like to thank each and every employee for their considerable efforts. The
Board is extremely grateful for the support of the Group's people and we
encourage them during this challenging economic climate to sustain the drive
that has led to the development of our global Group during this period.

Dividend

The Board has, in the last calendar year, issued maiden final and interim
dividends to shareholders. However, given the continued challenging market
conditions, the Board has taken the prudent view that cash should be retained
in the business to strengthen its balance sheet, rather than paid out as
dividends in the short term.

Therefore, the Board will not be recommending a final dividend to shareholders
but plans to re-adopt a progressive dividend policy, subject to the
availability of distributable reserves, and the retention of funds required to
finance future growth, once the macro economic situation has improved and the
Group has benefited from renewed growth.

Funding

The Group has entered the new financial year in a positive net cash position,
with strong, long-term funding in place and the support of its bank. Recently
revised terms with CPS's bank and an amended banking facility has been agreed
following a detailed review of the Group's business, strategy, operational plan
and financial projections. The Board felt it appropriate to renegotiate the
Group's banking facility in order to provide long-term funding and suitable
levels of headroom given the backdrop of the current macro-economic
environment.

This updated facility will provide the Group with prudent levels of headroom as
it continues to develop and grow globally. At the end of February 2009 net debt
stood at £18.9 million, including cash and cash equivalents of £6.5 million.

The Group's debt position, as translated into sterling, appears to have
increased from the last year end, due to the retranslation of the US dollar
denominated debt into sterling. The US dollar debt itself has reduced through
the scheduled repayments in the period.

The Board is confident that the revised bank covenants are appropriate for
current market conditions and the Group's trading outlook over the term of the
facility. The Board shall continue to focus on working capital management,
which is supported by a sustainable, long-term banking facility, which is in
place to 2013.

Outlook

The Group enters the 2009 financial year with a strong order book of £28.1
million, which has risen to £32.0 million at the end of April 2009, and has
been complemented by a diversified strategy covering a range of technologies,
key customer markets and geographical locations. Both these order book figures
include £3.5 million of postponed orders from European steel plants. The key
initiatives implemented at the beginning of 2009 will continue to be driven
forward over the coming months as we aim to navigate our Group through the
current economic climate.

The Group will focus on generating significant customer contact, ensuring that
its energy efficient, environmentally beneficial pneumatic conveying and air
filtration solutions remain at the forefront of capital investment projects;
management will control costs across the Group without restricting its business
development activities; the Group will remain vigilant to the credit positions
of all its customers; and will focus on cash generation across its global
operations. The Group will also continue with its strategy of diversification
within key geographical markets.

As many global economies predict a decline in growth over the next twelve to
eighteen months, the Board anticipates trading conditions to remain challenging
during this financial year. The unprecedented stimulus packages provided by the
major economies of the world will hopefully result in infrastructure and
construction projects being rejuvenated in the next year, helping to fuel
demand in commodities such as steel and cement.

A degree of uncertainty surrounds the capital investment projects of the
Group's key customer markets but the Board believes there are opportunities for
pneumatic conveying and air filtration in all key customer markets and is
committed to the continual implementation of global business development
strategies that have generated record financial results for the Group thus far.
The Board believes demand for the Group's technologies in markets such as food,
chemicals and grain will remain buoyant, with short term prospects in metals
and minerals to continue to be affected by current macro-economic conditions.

The Board believes the medium to long term growth prospects for the Group's
technologies remain strong, which is underpinned by the key drivers of energy
and the environment. The Group remains focused on targeting and securing orders
across its key customer markets and hopes, as macro-economic conditions
improve, for levels of contribution to increase with these orders.

The Group's strategic diversity gives the Board confidence in delivering long
term growth and returns for the Group's shareholders. The Board strongly
believes CPS is well equipped with the technologies, market focus and global
network to build on these record results.

Jim McColl Alex Stewart

Chairman Chief Executive

27 May 2009

Consolidated Income Statement

for the year ended 28 February 2009

Note Year ended Year ended
28 February 29 February
2009 2008

£'000 £'000

Revenue 2 81,956 61,597

Cost of sales (61,494) (46,079)

Gross profit 20,462 15,518

Distribution costs (6,780) (5,169)

Administrative costs (8,069) (5,316)

Other income 166 181

Operating profit 5,779 5,214

Analysed as:

Operating profit before exceptional items 6,251 5,214

Exceptional items 3 (472) -

Finance income 1,814 113

Finance expense (2,043) (1,894)

Net finance costs 4 (229) (1,781)

Share of loss of joint venture (15) (5)

Profit before taxation 5,535 3,428

Current taxation (1,703) (862)

Deferred tax charge (76) (350)

Recognition of previously unrecognised - 835
deferred tax assets

Taxation (1,779) (377)

Profit for the period 3,756 3,051

Profit attributable to minority interest 7 24

Profit attributable to equity shareholders 9 3,749 3,027

Earnings per share for profit attributable to the equity holders of the Company
during the year

Basic earnings per share 5 9.91p 10.31p

Diluted earnings per share 5 9.28p 8.03p

Group Statement of Recognised Income and Expense

for the year ended 28 February 2009

Year ended Year ended
28 February 29 February
2009 2008

£'000 £'000

Net exchange differences on retranslation of 7,508 11
foreign operations

Exchange differences on translation of 3 -
minority interests

Actuarial (loss) / gain recognised on (4,835) 1,201
retirement benefit obligations

Deferred tax movement on retirement benefit 1,354 807
obligations

Movement in interest rate hedging reserve 183 (746)

Movement in exchange rate hedging reserve (476) -

Deferred tax movement on hedging reserves 64 282

Net gains recognised directly in equity 3,801 1,555

Profit for the period 3,756 3,051

Total recognised income for the period 7,557 4,606

Attributable to:

Profit attributable to minority interest 7 24

Exchange differences on retranslation of 3 -
minority interest

Total attributable to minority interest 10 24

Equity shareholders of the parent 7,547 4,582

Consolidated Balance Sheet

at 28 February 2009

Note Year ended Year ended
28 February 29 February
2009 2008

£'000 £'000

ASSETS

Non-current assets

Intangible assets 61,667 46,100

Property, plant and equipment 10,856 7,850

Deferred income tax assets 4,215 2,320

76,738 56,270

Current assets

Inventories 5,486 3,819

Trade and other receivables 21,080 15,980

Current tax receivable 21 8

Derivative financial instruments 42 3

Cash and cash equivalents 7 6,486 4,587

33,115 24,397

LIABILITIES

Current liabilities

Bank borrowings and finance leases 8 (2,019) (992)

Trade and other payables (27,000) (19,774)

Current income tax liabilities (718) (216)

Provisions for liabilities and charges (933) (610)

Derivative financial instruments (1,068) (345)

(31,738) (21,937)

Net current assets 1,377 2,460

Non-current liabilities

Deferred income tax liabilities (10,362) (7,233)

Bank borrowings and finance leases 8 (23,353) (18,190)

Investment in joint venture (35) (14)

Retirement benefit obligations (6,588) (2,207)

Derivative financial instruments (222) (441)

Other non-current liabilities (78) (84)

(40,638) (28,169)

Net Assets 37,477 30,561

SHAREHOLDERS EQUITY

Ordinary shares 9 10,094 8,044

Share premium 9 24,529 18,377

Earn-out shares 9 - 8,202

Other reserves 9 (2,586) (9,865)

Retained earnings 9 5,409 5,782

Total equity attributable to shareholders 37,446 30,540

Minority interests 31 21

Total equity 37,477 30,561

Consolidated Cash Flow Statement

for the year ended 28 February 2009

Note Year ended Year ended
28 February 29 February
2009 2008

£'000 £'000

Cash flows from operating activities

Cash generated from operations 6 6,188 6,907

Tax paid (1,301) (293)

Net cash flow from operating activities 4,887 6,614

Cash flows from investing activities

Interest received 141 113

Cash acquired on purchase of subsidiary - 2,357

Proceeds from sale of property, plant and 43 18
equipment

Purchases of intangible fixed assets (3) (53)

Purchases of property, plant and equipment (1,102) (740)

Net cash flow from investing activities (921) 1,695

Cash flows from financing activities

Financing costs paid (2,023) (1,766)

Proceeds from issue of ordinary share capital - 20,995
(net of issue costs)

Repayment of borrowings (1,129) (43,710)

Proceeds from borrowings - 19,980

Loan to joint venture (21) -

Repayment of capital element of finance leases (31) (37)

Dividends paid to shareholders (641) -

Net cash flow from financing activities (3,845) (4,538)

Increase in cash and cash equivalents 121 3,771

Effect of exchange rates on cash and cash 1,778 85
equivalents

Cash and cash equivalents at the beginning of 4,587 731
the period

Cash and cash equivalents at the end of the 7 6,486 4,587
period

1. Notes to the preliminary results

General Information

Clyde Process Solutions plc (the Company) is a public limited company
incorporated and domiciled in England. The Company has a primary listing on the
AIM stock exchange. The address of its registered office and principal place of
business is Carolina Court, Lakeside, Doncaster, DN4 5RA.

Basis of preparation

The consolidated financial statements of the Group have been prepared in
accordance with International Financial Reporting Standards as adopted by the
European Union, IFRIC interpretations and the Companies Act 1985 applicable to
companies reporting under IFRS. The consolidated financial statements have been
prepared under the historical cost convention, as modified for financial assets
and financial liabilities (including derivative instruments) at fair value
through profit or loss.

The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgment in the process of applying the Group's accounting
policies. The areas involving a higher degree of judgment or complexity, or
areas where assumptions and estimates are significant to the consolidated
financial statements are disclosed in the financial statements.

The consolidated financial statements are presented in Sterling and all values
are rounded to the nearest £'000 except where otherwise indicated.

2. Segmental information

Primary reporting format - geographical segments

The segment result for the year to 28 February 2009 is as follows:

Europe North South Asia Africa Unallocated Total
America America

£'000 £'000 £'000 £'000 £'000 £'000 £'000

Total segment revenue 15,303 60,589 2,304 5,019 337 - 83,552

Inter-company segment (640) (132) - (824) - - (1,596)
revenue

External segment 14,663 60,457 2,304 4,195 337 - 81,956
revenue

Operating profit 469 6,467 (248) 226 62 (725) 6,251
before exceptionals

Exceptional items (83) (372) (17) - - - (472)

Operating profit/ 386 6,095 (265) 226 62 (725) 5,779
(loss)

Net finance (costs)/ (151) (2,334) 29 2 (4) 2,229 (229)
income

Share of loss of - - - (15) - - (15)
joint venture

Profit before 235 3,761 (236) 213 58 1,504 5,535
taxation

Taxation expense - - - - - (1,779) (1,779)

Profit / (loss) for 235 3,761 (236) 213 58 (275) 3,756
the period

Other segment items included in the income statement for the year to 28
February 2009 are as follows:

Europe North South Asia Africa Unallocated Total
America America

£'000 £'000 £'000 £'000 £'000 £'000 £'000

Amortisation of 20 172 - - - - 192
intangible fixed
assets

Impairment of trade 43 130 - 1 48 - 222
receivables

Depreciation of 165 492 35 13 - - 705
tangible fixed assets

Secondary reporting format - business segments

The segmental information for the year to 28 February 2009 is as follows:

Materials Filtration Total
Handling

£'000 £'000 £'000

Total segment revenue 62,577 20,975 83,552

Inter-company segment revenue (1,596) - (1,596)

External segment revenue 60,981 20,975 81,956

3. Exceptional items

During the period, severance payments totalling £330,000 were made to the
former CEO of MAC Equipment Inc, a 100% subsidiary of Clyde Process Solutions
plc. In addition severance payments totalling £142,000 were made to other Group
employees as part of a headcount reduction in reaction to more difficult global
trading conditions. These costs have been disclosed as exceptional items in the
income statement.

4. Net finance costs

Year ended Year ended
28 February 29 February
2009 2008

£'000 £'000

Interest on bank overdrafts 63 123

Interest on borrowings 1,514 1,300

Finance lease interest 12 22

Other interest costs 7 -

Net foreign exchange loss on financing - 207
activities

Working capital facility non-utilisation fees 73 32

Net finance cost on retirement benefit 194 67
obligation

Interest rate swap hedge ineffectiveness charge 114 -

Working capital arrangement fee and other 66 143
similar charges

Total finance expense 2,043 1,894

Net foreign exchange gain on financing (1,673) -
activities *

Interest receivable (141) (113)

Total finance income (1,814) (113)

Net finance costs 229 1,781

* During the year there was a £1.673m gain on a $10m inter-group loan. Hedging
instruments have been put in place to prevent any further exchange gain or loss
arising.

5. Earnings per ordinary share

The basic earning per share is calculated by dividing the earnings attributable
to ordinary shareholders for the financial period by the weighted average
number of shares in issue. In calculating the diluted earning per share,
warrants and earn-out shares outstanding have been taken into account.

Year ended Year ended
28 February 29 February
2009 2008

Profit for the period (£'000) 3,749 3,027

Weighted average number of shares (number) 37,815,006 29,361,855

Effect of outstanding share warrants 5,260 120,000

Effect of earn-out shares - 8,201,948

Effect of earn-out shares up to date of issue 2,561,704 -

Adjusted weighted average number of shares 40,381,970 37,683,803
(number)

Basic earnings per share 9.91p 10.31p

Diluted earnings per share 9.28p 8.03p

On 18 June 2008 8,201,948 new ordinary shares were issued for nil further
consideration under the terms of the acquisition agreement for Clyde Materials
Handling Limited.

Share warrants exercisable at any time up to 16 March 2008 have now lapsed
without exercise. There are no further share warrants outstanding.

6. Cash flows from operations

Year ended Year ended
28 February 29 February
2009 2008

£'000 £'000

Operating profit 5,779 5,214

Amortisation & fair value uplift reversal 192 812

Depreciation 705 486

Loss on disposal of property, plant & equipment 21 13

Loss on hedging instruments direct to equity (270) -

Retirement benefit obligation (648) (539)

(Increase)/decrease in inventories (251) 139

Increase in trade & other receivables (1,108) (2,655)

Increase in trade & other payables 1,649 3,464

Increase/(decrease) in provisions for 119 (27)
liabilities and charges

Cash generated from operations 6,188 6,907

7. Cash and cash equivalents

The carrying amounts of the Group's cash and cash equivalents are denominated
in the following currencies:

28 February 29 February
2009 2008

£'000 £'000

Pound Sterling (1,059) 1,638

US Dollar 6,906 2,664

Chinese Renminbi 464 208

Brazilian Real 154 127

South African Rand 27 -

Euro (14) (12)

Canadian Dollar 8 (38)

6,486 4,587

8. Bank borrowings and finance leases

28 February 29 February
2009 2008

£'000 £'000

Current

Bank borrowings 1,995 964

Current obligations under finance leases 24 28

2,019 992

Non-current

Bank borrowings 23,310 18,127

Non-current obligations under finance leases 43 63

23,353 18,190

Total borrowings 25,372 19,182

The movements in long term borrowings during the year to 28 February 2009 were
as follows:

US Dollar Loans US Dollar finance GBP Total
leases finance
leases

Amounts Translated Amounts Translated GBP GBP
in USD to GBP in USD to GBP

Borrowings at 1 37,977 19,091 58 29 62 19,182
March 2008

Repayments (net of (2,000) (1,129) (38) (21) (9) (1,159)
interest)

Arrangement fee 93 53 - - - 53
amortisation

Exchange - 7,290 - 6 - 7,296
translation effect

Borrowings at 28 36,070 25,305 20 14 53 25,372
February 2009

9. Reconciliation of movements in equity attributable to shareholders

Equity Share Earn-out Other Retained Total
share premium shares reserves earnings equity
capital account

£'000 £'000 £'000 £'000 £'000 £'000

Balance at 1 March 2007 2,568 2,898 9,500 (10,556) 747 5,157

Profit attributable to - - - - 3,027 3,027
Shareholders

Exchange adjustments on - - - 11 - 11
translation

New shares issued in the year 5,476 - - - - 5,476

Premium on issue of ordinary - 15,479 - - - 15,479
share capital

Fair value loss on cash flow - - - (746) - (746)
hedges

Deferred tax asset on cash - - - 282 - 282
flow hedging liability

Amendment to earn-out shares - - (1,298) 1,144 - (154)

Deferred tax asset on - - - - 807 807
retirement benefit obligation

Actuarial gain on retirement - - - - 1,201 1,201
benefit obligations

Balance at 29 February 2008 8,044 18,377 8,202 (9,865) 5,782 30,540

Balance at 1 March 2008 8,044 18,377 8,202 (9,865) 5,782 30,540

Profit attributable to - - - - 3,749 3,749
Shareholders

Dividends paid to - - - - (641) (641)
Shareholders

Exchange adjustments on - - - 7,508 - 7,508
translation

Earn-out shares issued in the 2,050 6,152 (8,202) - - -
year

Actuarial loss on retirement - - - - (4,835) (4,835)
benefit obligations

Deferred tax movement on - - - - 1,354 1,354
actuarial loss

Fair value movement on - - - 183 - 183
interest rate hedging

Fair value movement on - - - (476) - (476)
exchange rate hedging

Deferred tax movement on - - - 64 - 64
hedging reserves

Balance at 28 February 2009 10,094 24,529 - (2,586) 5,409 37,446

10. Earnings before interest, tax, depreciation & amortisation

The earnings before interest, tax, depreciation & amortisation ("EBITDA") as
referred to in the Chairman's and Chief Executive's Statement is calculated as
follows:

Year ended Year ended
28 February 29 February
2009 2008

£'000 £'000

Operating profit 5,779 5,214

Less share of joint venture losses (15) (5)

Plus depreciation 705 486

Plus amortisation 192 535

Plus inventory fair value write off - 237

EBITDA 6,661 6,467

Add back exceptional costs 472 -

EBITDA before exceptionals 7,133 6,467

11. Availability of Accounts

Copies of the full Report and Accounts for the year ended 28 February 2009 will
be made available to shareholders. Further copies will be available from
Carolina Court, Lakeside, Doncaster, DN4 5RA.

END