Preliminary results return to pre tax profit

Financial Highlights
* Profit before tax (before loss on disposal of operations) up 71% to 5.3m (2003: 3.1m)

* Profit before tax of 3.1m (2003: loss 10.0m), after 2.2m (2003: 13.1m) loss on disposal of operations predominantly resulting from the non-cash write-off of goodwill of 2.0m (2003: 15.3m)

* Turnover from continuing operations up 7% to 65.4m (2003:
61.2m)

* Earnings per share before loss on disposal of operations
doubled to 5.4p (2003: 2.7p)

* Final dividend increased to 2.75p (2003: 2.5p); full year
dividend 3.75p (2003: 3.5p)

Good Progress Against Strategic Goals
* Return on sales on continuing business of 8.1% (2003: 5.1%)

* Product business revenues up 7% to 38.6m (2003: 36.0m)

* Assessment Services revenues up 8% to 24.3m (2003: 22.5m)

* Strong cash generation to fund ongoing investment in growth

* Portfolio focus via exit of 6 business units and
non-strategic operations

Commenting on the results, John Bateson, Group Chief Executive of SHL, said:

The Group continues to trade well and anticipates that the foundations we have built will enable us to capitalise on further growth opportunities as they emerge in both our Product business and Assessment Services business. We continue to invest in sales and marketing to leverage the intellectual capital of SHL. We have made a positive start to the new financial year and anticipate continuing growth, particularly in the Product business.