Sales and profits bounce back

6 months to 30 September


                                                                    2002            2001          
                                                                    £’m              £’m

Turnover
                                                                    308.5           281.2

Operating Profit*
                                                                    30.5             13.2

Profit/(Loss) Before Tax*
                                                                    19.0             (0.8)

Earnings/(Loss) per share (basic)*
                                                                    7.0p             (0.4)p

Dividend per share
                                                                    3.9p             3.9p

Net Debt
                                                                    322.8           332.1

*Before exceptional items

Focus on investment in brands shows success as consumer business grows by 7%
Medical sales affected by competitive pricing pressure and wholesaler de-stocking
Operating profit increase of 130% over comparative period, margin doubles to 10% in first half and remains on course to exceed 13% for the full year
European restructuring programme is on track to improve operating margins
Continued investment in R&D and operational systems to build a platform for the future
Prospects for the remainder of the year are broadly in line with our expectations, although with lower than originally anticipated underlying medical sales
Brian Buchan, Chief Executive, said:

“The results for the first half show the recovery we expected after the difficult decisions we took last year. Our increased investment in media advertising and innovative product development generated good growth in both our flagship brands, Durex and Scholl.

We now have a healthier pipeline of new and improved products enabling us to plan for future sales growth. Despite an increasing challenge in the US surgical gloves market, we are confident we will continue to maximise the opportunity there.

Through our on-going operational initiatives ranging from new information technology systems to the review of our manufacturing structure and our supply chain, we are creating a more efficient infrastructure on which to build future growth.”

For further information:

SSL International (020 7367 5770)

Brian Buchan, Chief Executive

Garry Watts, Group Finance Director

Jan Partington, Head of Investor Relations

The Maitland Consultancy (020 7379 5151)

William Clutterbuck/ Brian Hudspith

A Portable Document Format version of the Interim results for the Six Months ended 30 September 2002 can be viewed or downloaded from our Downloads page by clicking here.