Interim Results
Proventec Plc (AIM:PROV, Alternext:ALTPC), a provider of specialist steam cleaning and coatings technologies, today announces its interim results for the six months ended 30 September 2008.
Highlights
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Group turnover up 41% to £8.18 million* (2007: £5.82 million)
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Pre-tax loss of £649,000 due in part to weakness in sterling (2007: £391,000 profit**)
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Successful dual listing on the NYSE Euronext's Alternext market in Paris
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Acquired controlling stakes in Frank GmbH, a German engineering company and CryoJet Industrial Services BV based in Rotterdam
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Proventec Healthcare formed to provide specialist hygienic cleaning solutions for infection control and effective cleaning functions in the healthcare sector
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Guido Schoenmakers appointed to the main board as Chief Operations Director

* Turnover figure includes a full six months of Contico compared to four months in the previous interim period

** The corresponding results for the period to 30 September 2007 included a profit of £615,000 on the sale of one of the non-core investments, Ultra Motor Company Limited.

David Chestnutt, Chief Executive of Proventec Plc, commented: "Despite the problems of the economic slowdown and hopefully the short term volatility of the currency markets, the Board remains confident and excited for the future of the Group. Proventec's main businesses are focused on markets where cost is not necessarily the most important consideration and the Group remains confident that it can continue to provide innovative and effective solutions where solutions are required."

CHAIRMAN'S STATEMENT
The results for the six month period ended 30 September 2008 show an encouraging increase in turnover but a reduction in net profit compared to the same period last year, which included a profit of £615,000 on the sale of one of Proventec's non-core investments.
During the period the Group dual-listed its shares on the NYSE Euronext's Alternext market in Paris and earlier this month the unsecured Loan Notes 2012 were also admitted to trading on this market. Since Proventec dual listed on Alternext, it has already witnessed increased investor interest from outside the UK. The Group believes this listing will continue to give it access to mainland European capital markets which, in turn, gives it greater flexibility.
There has been a significant increase in Proventec's overhead base as the Board seeks to put in place a structure to manage the expansion and development of the Group. In addition there has been a reduction in margin due to exchange rate losses suffered over recent months. The weakness of sterling has had a significant effect on the profitability of the trading companies within the Group who predominantly purchase in US dollars and from the Euro zone.

The Group strategy of positioning Proventec as a specialist provider of hygienic and innovative cleaning products and services to the healthcare market and the food industry has continued.

In September Guido Schoenmakers was appointed to the main board as Chief Operations Director. In addition, two senior managers have also recently been appointed to the Group who will assist in the 'roll out' of Proventec Healthcare which is a new concept. Proventec Healthcare will provide a focal point for the provision of specialist hygienic cleaning solutions and products aimed specifically at the healthcare market and its particular demands both in the UK and elsewhere.

In the industrial sector, the Group has also completed two small but significant acquisitions during the first half of the year. In August 2008, Proventec acquired a 60 per cent. stake in Frank GmbH, a German engineering company, specialising in the manufacture and assembly of high quality, reliable, industrial high pressure cleaners. The Board believes that there will be many benefits in working with Frank not only in producing a new range of Industrial water based cleaning solutions for Proventec as well as also growing its existing business.

In September 2008, the Group acquired a 60 per cent. shareholding in CryoJet Industrial Services BV based in Rotterdam. CryoJet uses in addition to steam, a proprietary dry ice technology as a cleaning agent and the company provides a specialist cleaning service to industrial clients in Holland. This technology will be rolled out to other geographical markets and, together with the Osprey dry steam industrial machine range, will offer a highly cost effective and efficient cleaning and ongoing maintenance service to industrial customers.

The Board believes that the steps it has taken and continues to take, will help to position the Group at the forefront of innovative and technology based cleaning solutions for both the healthcare and industrial sectors.

The Board has previously stated that it is aware that the Group's Balance Sheet would benefit from some restructuring and in the near future the Board will make contact with shareholders to advise them of the Board's proposals and to seek shareholder approval at a General Meeting.

Peter Teerlink
Chairman
24 November 2008



CHIEF EXECUTIVE'S REPORT
Turnover in the six months to 30 September 2008 has increased in line with the Group's expectations and overall sales have remained strong. Margins within the Group have been eroded and this has been largely due to currency losses because the majority of the products purchased for resale by the Group are purchased in US Dollars from the Far East, mainly China and in Europe, from Italy. In addition, the listing of Proventec's shares and loan notes on Alternext in France and the costs involved in the acquisitions of Frank and CryoJet are other one-off costs incurred by the Group.

Proventec's interim results to 30 September 2007 included the profit on the balance of the monies due arising from the sale of its stake in Ultra Motor Company Limited, one of the Group's non-core investments that was sold in October 2006.

The level of the Group's overheads has increased as it has continued to strengthen its senior management and technical staff in Osprey in the UK and in The Netherlands. Proventec's advertising spend and marketing budget, including attendance at an increased number of trade exhibitions, has been maintained to ensure the Group is well positioned to take advantage of the commercial opportunities it has created in the market.

Hygienic Solutions
Under the leadership of Thomas Stuecken, now supported by Guido Schoenmakers, the Group has continued to expand the niche market that Osprey has successfully developed with its dry steam equipment and specialist tooling directed at the healthcare sector.

Contico Manufacturing Limited has sought new products to enhance its janitorial range and in conjunction with Osprey has sourced a disposable micro-fibre range.

These developments lead to the formation of a new entity, Proventec Healthcare, which will act as a provider of innovative and evidence based solutions for infection control and effective cleaning functions in the healthcare sector.

Proventec Healthcare has appointed two new and experienced senior managers, Richard Horsfall and Michael Rollins who specialise in procurement and research. Proventec Healthcare will seek to source a range of effective and environmentally friendly products that combined with dry steam and micro-fibre will provide a comprehensive package for hospitals, nursing homes and other establishments in the healthcare sector.

Although dry steam cleaning has been initially focused on the healthcare market, the Group also recognises that there is a larger market in the industrial sector. Food manufacturing companies have similar demands on the level of cleanliness and the need for a bacterially clean environment.

To that end Proventec has strengthened its expertise in this industrial market by the Group's strategic acquisitions of controlling stakes in Frank GmbH and CryoJet Industrial Services BV.

The acquisition of Frank has broadened the Group's technical and engineering skills. Frank, which has a reputation in Germany for manufacturing reliable industrial high pressure hot water washers, will work with the Osprey technical staff to develop a range of industrial dry steam equipment aimed at use in the food manufacturing sector where the demands of power and the ability to use 24/7 requires reliably engineered equipment.

As an additional service, the acquisition of CryoJet provides the Group with access to an innovative and highly efficient heavy duty industrial cleaning service. The process utilises dry-ice pellets of carbon dioxide, blasted on to the surface to be cleaned, at a temperature of minus 75 degrees centigrade. The company has developed its own proprietary equipment and provides this highly specialist cleaning service through its own team of skilled operators. CryoJet can clean where the industrial process has baked on excessive dirt that even dry steam cannot remove.

Once the CryoJet process has renovated the industrial plant, dry steam cleaning will ensure the plant does not fall into such a state of disrepair again.

Dry-ice and dry steam working together is cost effective and can delay or prevent the need for plant refurbishment. Effective cleaning solutions can also extend the life of major plant assets that would otherwise be replaced with the attendant costs of new plant and downtime.

Preventative Coatings
Marketing and business development work is continuing on the Magma range of fire retardant coatings for the timber, thatch and construction market. Magma has recently completed a trial of one of its timber impregnation products which should lead to a commercial agreement before the end of 2008.
Innoshield BV, a coating that prevents fading and restores the colour of plastics from ultra-violet light, is in discussions with a company for a significant contract in the Middle East where fading from ultra-violet light is a major concern.

Outlook
After listing Proventec's shares on the NYSE Euronext's Alternext market in Paris, the Group has recently completed the listing of the Loan Notes on the same market. The Board will continue during the second half of the year with the re-structuring of our balance sheet.

Despite the problems of the economic slowdown and hopefully the short term volatility of the currency markets, the Board remains confident and excited for the future of the Group. Proventec's main businesses are focused on markets where cost is not necessarily the most important consideration and the Group remains confident that it can continue to provide innovative and effective solutions where solutions are required.

David Chestnutt
Chief Executive
24 November 2008