Interim Management Statement

2010/11 Third quarter update

In my interim statement, I reported that it would not be unrealistic to expect that a strong second half out-turn for 'Defence' should be possible. Pleasingly, that expectation still applies. 

The Group order book is substantial and heavily biased in favour of 'Defence', our largest division. Whilst certain markets for 'Forgings' and 'Petrol Station Structures' have continued to improve, their overall recovery to date remains subdued.

Significantly, the balance sheet has made a strong recovery with net cash and short term deposits considerably higher currently than that reported at the interim stage.

In the meantime we continue to actively drive, encourage and support the Group's numerous product development and production efficiency programmes.

Michael Bell

22 February 2011