News release

Tomkins announces 2006 preliminary results

15 February 2007

1. HEADLINE FINANCIALS

Full Year 2006

• Sales from continuing operations increased 6.0 per cent to £3,124.6 million (2005: £2,948.4 million)
• Adjusted profit from continuing operations* was £295.9 million (2005: £297.9 million)
• Adjusted profit from total operations was £298.0 million (2005: £308.7 million)
• Operating margin, based on adjusted profit from continuing operations, was 9.5 per cent (2005: 10.1 per cent)
• Profit before tax was £244.8 million (2005: £263.0 million)
• Disposal of non-core businesses: Lasco Fittings sold; Wiper Systems progressing
• Diluted earnings per share from continuing operations were 22.99 pence (2005: 24.16 pence)
• Final dividend of 8.57 pence, resulting in full year dividend of 13.89 pence (2005: 13.23 pence) up by 5.0 per cent
• Operating cash flow** from total operations was higher at £219.0 million (2005: £217.0 million)
• Period-end net debt, excluding the outstanding preference shares, was £403.0 million (2005: £334.5 million)

* Adjusted profit from operations excludes restructuring initiatives and the amortisation of intangible assets arising on acquisition. Wiper Systems is now classified as a discontinued operation.

** Operating cash flow is cash generated from operations less net capital expenditure.

David Newlands, Chairman, commented:
“During the second half of 2006, management were faced with a significant deterioration in two of our major markets and took prompt action to mitigate the impact of this on the results of the Group.

The overall outlook for our markets in 2007 is difficult particularly when compared to the first half of 2006. This, together with the weaker US dollar is expected to impact the comparison with prior year for the Group. Our management team is focused on managing the business through the current slowdown and delivering longterm value to shareholders. The decision by the board to increase the final dividend by 5 per cent to 8.57 pence per share reflects its confidence in the Company’s continued progress through the cycle.”

James Nicol, Chief Executive Officer, commented:
“The progress made in the first half of the year was followed in the late summer by a sharp slowdown in the US residential housing market and significant reduction in demand from automotive original equipment customers in North America. These factors had an adverse impact on our financial results. We continue to build a stronger manufacturing base and increase our presence in new markets and developing regions, through organic development and bolt-on acquisitions, to position the business for renewed growth on recovery of end-markets.”

Outlook
The timing of recovery in trading conditions in some of our North American end-markets is uncertain. When compared to the early quarters of last year, lower levels of demand from our customers together with the translation effect of the weaker US dollar are likely to impact on reported performance of the Group. Actions we are taking to further tighten control over costs will help to offset the profit impact of weaker markets and during this period we will continue to focus on cash generation through a reduction in levels of capital expenditures and working capital.

The video webcast and presentation slides for this results announcement can be downloaded from the Tomkins corporate website on http://www.tomkins.co.uk