RNS Number:7184R
Zirax PLC
07 April 2008


                                                                   
                                    Zirax plc
                                        
                           ("Zirax" or the "Company")
                                        

            Preliminary Results for the year ended 31 December 2007

Zirax, the AIM quoted speciality chemical company focused on the development,
production and sale of oilfield process chemicals and de-icing solutions,
announces its preliminary results for the year ended 31 December 2007.

Highlights

Financial Performance

   * Total revenues up 23% to $30.7m (2006: $25.0m)
   * Pre-tax profit up 35% to $5.3m (2006: $3.9m)
   * Oilfield Process Chemicals operating profit up 40% to $2.2m (2006:
     $1.6m)
   * De-icing Solutions operating profit up 9% to $3.7m on reduced revenue
     (2006: $3.4m)
   * Basic EPS has increased by 33% to 2.17 cents (2006: 1.63 cents)

Operating Highlights

   * Rosignano plant commenced production, significantly increasing capacity
   * Now second largest supplier of calcium chloride pellets globally and the
     leading supplier in the Eastern Hemisphere
   * Acquisition of Solith in January 2008
   * Fifth consecutive award of Moscow de-icing contract

Valery Andosov, CEO, commented:

"2007 was a successful year, which saw us substantially increase capacity
following the expansion of our Volgograd plant and the opening of the new supply
from Rosignano, Italy. Production in Italy together with the acquisition of
Solith in Austria, in January 2008, will enable us to expand our footprint
throughout markets of the Middle East, Africa, Central and Western Europe giving
us a strong platform for growth. With the combination of increased capacity and
this platform for geographical expansion we are confident the Company is well
positioned to significantly increase revenues during this current year and the
next."

Enquiries:

Zirax                     Valery Andosov, CEO             T: +7 (495) 730 9559
                          Fenlon Dunphy, CFO              T: +44 (0)20 7868 1694

Hanson Westhouse Limited  Tim Metcalfe                    T: +44 (0)20 7601 6100
                          Richard Baty

Metropol (UK) Limited     Alexander Selegenev             T: +44 (0)20 7439 6880

Cardew Group              Tim Robertson                   T: +44 (0)20 7930 0777
                          David Roach
                          Daniela Cormano




Chairman's Statement

I am delighted to present our results for the 12 months to 31 December 2007.
This year has seen the successful conclusion of the plans we set in motion at
the time of our AIM admission in December 2005, to increase production capacity
by expanding our existing facility at Volgograd and opening a new supply source
from Rosignano, Italy. These important step changes now make us the second
largest supplier of calcium chloride pellets globally and the leading supplier
in the Eastern Hemisphere. The strength in demand for our products continues to
rise and we are confident that the increased capacity will enable us to further
grow the business significantly. As an international business with wider global
aspirations, we are particularly pleased that we can now place more emphasis on
the geographic expansion and additional capacity coming out of Rosignano and
further opportunities from the acquisition of Solith Anlagenbau und Service GmbH
("Solith") in Austria.

Demand continues to exceed supply, and this is demonstrated in our financial
performance for 2007. Overall revenues increased by 23% to $30.7m (2006: $25.0m)
and we further spread the level of segmental mix with the Oilfield Process
Chemical revenues now accounting for 52% of Group revenues compared to 37% in
2006. The increase in overall revenues has translated into an 18% increase in
operating profit.

Basic EPS has increased to 2.17 cents from 1.63 cents in 2006. No dividend is
being declared for the period under review, as we pursue our plans to grow and
expand the business. However, the Board is committed to generating value for our
shareholders, and keeps dividend payment under careful consideration.

Since the year end we made our first strategic acquisition, buying 100% of the
share capital of Solith. Solith, located in Austria, provides us with a platform
to expand our footprint to the de-icing markets of Central and Western Europe.

I would like to take this opportunity to thank all the employees of Zirax for
their dedication and continued efforts to grow and develop the business.

The directors believe that Zirax remains well positioned to grow the business
during 2008, based on the continuing strong growth in demand for its products.
Our focus remains on delivering significant shareholder value.


Sir Michael Oliver
Chairman





Operating and Financial Review

Zirax is primarily focused on the Oilfield Process Chemicals and high
performance De-icing Solutions sectors, and to a lesser extent the wider
industrial market. In 2007 we continued our strategy of growing the Oilfield
Process Chemicals segment of our business, taking it to 52% of our overall
revenues. This has had the effect of reducing the seasonality of our business.
As a direct consequence, De-icing Solutions revenues now represent 40% of our
revenue total. However, greater operational efficiencies and improved pricing
produced a 9% increase in operating profit from De-icing. The remainder of Group
revenue is derived from the Industrial Chemicals segment.

We are committed to growing our business internationally. In 2007 revenues in
the domestic Russian market grew 22%, whilst international sales grew 25%.
Overall, Russian sales represented 81% of revenues in 2007, and international
sales 19%. In November 2007 we announced the opening of Rosignano, Italy which
gives us an increase in annual capacity of approximately 55,000 MT. This
capacity is targeted at the growing demand from the oilfield process chemicals
markets in nearby Africa and the Middle East, plus potential de-icing and
industrial markets in Europe. Our total capacity out of Volgograd and Rosignano
has now increased to a potential 170,000 MT. This is a doubling of our available
capacity over a two year period. Although Rosignano opened as planned in
November 2007, as is the nature with production facilities, it is taking longer
than anticipated to achieve full capacity. The expectation is that the plant
will be up to capacity in the next few months.

We will continue to meet our aims of growing market share and the changing needs
of our customers, who demand new, more efficient and environmentally friendly
ways of delivering their end requirements.

We are also actively investigating, through our own research and development,
commercial collaborations and acquisitions, other potential applications and
revenue streams.

Our markets and strategy

Oilfield Process Chemicals

Our revenues within this sector grew 75% from $9.2m in 2006 to $16.0m in 2007,
and our operating profit increased by 40% from $1.6m to $2.2m in 2007.

A significant amount of this growth continues to come from the expanding
domestic Russian market which is now vying for the position of largest global
oil producer. With such a sizeable domestic market to target we see a good
future for our existing products and for the development of new ones. On top of
this, with the additional capacity from Italy, we have positioned ourselves,
through existing and new contacts, to strengthen our international market share
in 2008.

The exploration and development of new oil and natural gas wells and the need
for more efficient production in the existing ones have resulted in a global
increase in demand for oilfield process chemicals. Customers in the oilfield
service sector impose strict quality requirements on any supplier of speciality
chemicals, particularly when used in the drilling and commissioning of oil
wells.

We have developed our own brand of calcium chloride pellets, PelletOilTM, with a
smaller particle size and calcium chloride content of 94-98%, for use in this
market. Products with such a high calcium chloride concentration are considered
premium products in the oilfield service sector.

Calcium Chloride is used as a component element in many applications within this
market, including,

   * Drilling Muds to cool and lubricate the drill bit allowing longer bit
     life and reducing drilling times by up to 25%,
   * Completion Fluids to flush the drilling hole clean of solids prior to
     the casings being cemented in place, and
   * Enhanced Oil Recovery to improve the oil extraction percentages through
     chemical flooding technologies.

We have developed strong relationships with a number of the leading oilfield
service companies, providing product for use in Africa, the Middle East, Russia,
CIS and the North Sea.

De-icing Solutions

Our strategy has been to allocate a higher level of product to other sectors,
thus reducing revenues from De-icing Solutions by 9% from $13.6m in 2006 to
$12.4m in 2007. However, better margins meant that our operating profit
increased 9% from $3.4m in 2006 to $3.7m in 2007.

After a slightly delayed tender process we won the auction for a fifth
consecutive year to provide de-icing products to Moscow City Council. Revenues
from this contract were lower this year due to a sequence of milder winters in
Moscow over the last two seasons which underlines our decision to further
diversify our customer base. However, we still anticipate significant growth
potential in this segment through offering our experience and knowledge to new
markets. This is reflected in our recent acquisition in January 2008 of Solith,
a young Austrian company focused on a very similar market place, as it provides
higher performance de-icing product to the highways agencies of Austria.

The prolonged use of salt can be harmful to vegetation and corrosive to metal,
resulting in an increasing amount of environmental legislation being introduced
worldwide to restrict the use of lower performance de-icing products. Naturally,
this creates a gap in the market, which Zirax is able to fill.

Our products are more efficient, as they penetrate the ice quicker than medium
strength flakes, and better meet environmental concerns because of the
significantly smaller quantities required to achieve the same result. Our de-
icing products, IceMelt(TM) and calcium chloride pellets, give off heat as they
dissolve, melting more ice faster at lower temperatures. IceMelt(TM) is our
specially designed and patented high performance de-icing agent which also
contains a corrosion inhibitor, making it particularly suited to use in
municipal, commercial and retail applications.

Industrial Chemicals

Our revenues from other industrial opportunities, such as wastewater treatment
and food additives, grew from $2.2m in 2006 to $2.3m in 2007.

Business environment and competition

Zirax is now the second largest supplier of calcium chloride pellets globally
and the leading supplier in the Eastern Hemisphere. Although calcium chloride is
widely supplied in medium strength flake and liquid format, we are one of very
few manufacturers of high purity calcium chloride pellets. Our proprietary
technological process is the result of a number of years of operations and an
accumulation of technical knowledge. Without such technology and process
knowledge, we believe it would require significant capital investment for a
competitor to start similar production of calcium chloride pellets with
comparable concentration levels.

Key performance indicators ("KPIs")

The Board monitors progress on the Group's strategy by reference to the
following KPIs which are discussed in more detail under "Results" below:

   * Revenue
   * Operating profit
   * Profit before tax

Results

Total revenue for 2007 increased 23% from the previous year to $30.7m. Within
our segments, sales of Oilfield Process Chemicals have grown to $16.0m, which is
a 75% increase over 2006, whilst reducing our dependence on high performance
De-icing products. Sales in this segment were $12.4m in 2007 from $13.6m in
2006. We have coupled this with a modest increase in the Industrial sector to
$2.3m from $2.2m, further spreading our segment range and taking advantage of
sales opportunities.

Cost of sales showed a 24% increase from $11.8m in 2006 to $14.6m in 2007.
Distribution expenses also grew 24% to $6.8m compared to $5.5m in 2006, whilst
general and administrative expenses increased 25% to $4.5m in 2007 compared to
$3.6m in 2006.

Employee numbers have remained broadly the same from 205 at the end of 2006 to
211 at the close of 2007.

Operating profit has grown 18% to $4.7m in 2007 from $4.0m in 2006.

Profit before taxation has increased 35% to $5.3m in 2007 from $3.9m in 2006.

Profit for the year after tax was $3.7m compared to $2.8m in 2006, a 34%
increase.

Capital expenditure

Investment in property, plant and equipment and intangible assets of $3.0m in
2007, primarily results from the continued expansion of our Volgograd plant and
facility and the acquisition of patent rights.

Cash flow

In 2007 cash used in operations amounted to $2.3m compared to cash generated
from operations of $2.5m in 2006. This net cash outflow from operations was
primarily a result of timing as the Moscow City council contract was finalised
late in the financial year resulting in a significantly higher closing
receivable position than in previous years.

Cash capital expenditure was $2.9m as we expanded the Volgograd plant capacity
and further secured our intellectual property. As a result of the debtor
position and our cash reserves being held on deposit it was necessary to borrow
funds, net $4.0m, to cover the shortfall.

Cash and cash equivalents decreased from $9.4m at 31 December 2006 to $8.2m at
31 December 2007.
Liquidity and financial risk

The Group has sufficient cash funds to meet its foreseeable business plans. Any
surplus funds are invested, but we do not undertake speculative treasury
transactions.

Basic EPS was 2.17 cents for 2007 compared to 1.63 cents in 2006, a 33%
increase. In line with the Board's stated strategy no dividend will be payable
for the period.

Future outlook

We are very optimistic about our future. At the time of our AIM admission in
December 2005, we set out a two year plan to significantly expand our supply
capacity of calcium chloride. This we have done; available capacity has doubled
by the close of 2007 and revenues have increased by 50% over the two year
period. Our focus in 2008 will be to match the increased capacity with new and
existing customers. Given the quantum of the increase in production it is
difficult to forecast the pace at which this will happen. However, it remains
true that demand still exceeds supply and the Board is therefore wholly
confident that we will grow the business substantially during the coming year
and the next.

With the growth in the business and the AIM admission our profile has been
greatly enhanced and has brought significant leads to further grow the business,
both organically and through acquisition. As a consequence, the Board believes
the Company is in an excellent position to generate very attractive returns for
shareholders.

Our aim is to build the business through well thought out and structured
investment, seeking new opportunities, similar to that of Solith, which can
expand and enhance our portfolio of high quality products.

During the last year, we have successfully strengthened our reputation in the
marketplace for quality and service. Not only do our customers demand more of
our products, but they also seek and actively encourage us to source additional
product for them.

Valery Andosov
Chief Executive Officer










Consolidated Income Statement
For the Year Ended 31 December 2007

                                            Notes           2007          2006
                                                           $'000         $'000

Revenue                                          1        30,665        24,958
Cost of sales                                            (14,628)      (11,845)
                                                      ----------    ----------
Gross profit                                              16,037        13,113

Distribution expenses                                     (6,777)       (5,482)
General and administrative expenses                       (4,521)       (3,608)
                                                      ----------    ----------
Operating profit                                           4,739         4,023

Interest receivable                                          495            87
Interest payable and similar charges                        (177)          (43)
Net foreign exchange gain/(loss)                             240          (134)
                                                      ----------    ----------
Net finance income/(costs)                                   558           (90)

Profit before taxation                                     5,297         3,933

Taxation                                                  (1,559)       (1,132)
                                                      ----------    ----------
Profit for the year                                        3,738         2,801
                                                          ======        ======

Earnings per share expressed in US cents per share:

Basic                                            2          2.17          1.63
                                                      ----------    ----------
Diluted                                          2          2.17          1.60
                                                          ======        ======







Balance Sheets
At 31 December 2007

                              Group                                          Company
                        2007                2006                      2007              2006
                       $'000               $'000                     $'000             $'000
Non-current assets

Property, plant
and equipment         10,907               8,275                         2                 2

Intangible assets        225                   -                         -                 -

Investment in
subsidiaries               -                   -                     8,463             7,289

Trade and other
receivables            6,104               2,701                     3,161             2,701

Deferred income
tax assets               202                  24                         -                 -
                  ----------          ----------                ----------        ----------
Total non-current
assets                17,438              11,000                    11,626             9,992
                  ----------          ----------                ----------        ----------

Current assets

Inventories            3,199               2,082                         -                 -

Trade and other
receivables           11,524               3,585                     8,979             9,482

Cash and cash
equivalents            8,156               9,448                        13               242
                  ----------          ----------                ----------        ----------
Total current
assets                22,879              15,115                     8,992             9,724
                  ----------          ----------                ----------        ----------

Current liabilities

Short-term
borrowings             4,153                   -                         -                 -

Trade and other
payables               5,633               1,947                       373               374

Current tax
liabilities              891                 127                        17                32
                  ----------          ----------                ----------        ----------
Total current
liabilities           10,677               2,074                       390               406
                  ----------          ----------                ----------        ----------
Net current
assets                12,202              13,041                     8,602             9,318
                  ----------          ----------                ----------        ----------
Net assets            29,640              24,041                    20,228            19,310
                      ======              ======                    ======            ======
Shareholders' equity
Share                  2,965               2,965                     2,965             2,965
capital
Share premium         11,194              11,194                    11,194            11,194
Other reserves         6,218               4,357                     8,967             7,434
Profit and loss
account                9,263               5,525                    (2,898)           (2,283)
                  ----------          ----------                ----------        ----------
Total
shareholders'
equity                29,640              24,041                    20,228            19,310
                      ======              ======                    ======            ======




Cash Flow Statements
For the Year Ended 31 December 2007

                                                       Group                                Company
                                               2007            2006                     2007           2006
                                              $'000           $'000                    $'000          $'000

Cash flows from operating
activities
Profit/(loss) before
taxation                                     5,297            3,933                     (616)          (904)

Adjustments for:
Depreciation of property,
plant and equipment                            714              600                        1              1

Amortisation of intangible
assets                                           7                -                        -              -

Loss on disposal of
property, plant and
equipment                                       15                -                        -              -

Share options expense                          122               45                      122             45

Interest receivable                           (495)             (87)                    (804)          (648)

Interest payable and
similar charges                                177               43                        -             10
                                        ----------       ----------               ----------     ----------
Profit and loss before
working capital changes                      5,837            4,534                   (1,297)        (1,496)

(Increase)/decrease in
trade and other
receivables                                 (7,396)           2,352                      668         (5,777)

Increase in inventories                       (940)          (1,252)                       -              -

Increase/(decrease) in
trade and other payables                       131             (208)                      (8)           (93)

Increase/(decrease) in
taxes payable                                   42             (272)                     (16)            26

Increase in advances to
suppliers                                        -           (2,638)                       -         (2,638)
                                        ----------       ----------               ----------     ----------
Cash (used in)/from
operations                                  (2,326)           2,516                     (653)        (9,978)

Taxes paid                                  (1,055)          (1,100)                       -              -
                                        ----------       ----------               ----------     ----------
Net cash (used in)/from
operating activities                        (3,381)           1,416                     (653)        (9,978)
                                        ----------       ----------               ----------     ----------

Cash flows from investing activities:
Interest received                              347               23                      478            421

Purchase of property,
plant and equipment                         (2,708)          (2,023)                       -             (3)

Purchase of intangible
assets                                        (184)               -                        -              -

Loans repaid                                     -                -                      200              -

Issue of debt securities                         -            1,103                        -              -

Repayment of debt
securities                                       -           (1,103)                       -              -
                                        ----------       ----------               ----------     ----------
Net cash used in investing
activities                                  (2,545)          (2,000)                     678            418
                                        ----------       ----------               ----------     ----------

Cash flows from financing activities:
Cash inflow from issue of
ordinary shares                                  -            5,317                        -          5,317

Exceptional share issue
costs                                            -             (356)                       -           (356)

Proceeds from borrowings                     6,190                -                        -              -

Repayment of borrowings                     (2,202)          (2,445)                       -              -

Interest paid                                 (150)            (200)                       -              -
                                        ----------        ----------              ----------     ----------
Net cash from financing
activities                                   3,838             2,316                       -          4,961
                                        ----------        ----------              ----------     ----------


Net (decrease)/increase in                  (2,088)            1,732                      25         (4,599)
cash and cash equivalents

Cash and cash equivalents
at beginning of the year                     9,448             6,146                     242          3,320

Effects of exchange rate
changes                                        794             1,570                    (254)         1,521
                                        ----------        ----------              ----------     ----------
Cash and cash equivalents
at end of the year                           8,154             9,448                      13            242
                                        ----------        ----------              ----------     ----------



Consolidated Statement of Changes in Shareholders' Equity
For the Year Ended 31 December 2007


                           Share       Share      Other     Profit and       Total
                         capital     premium   reserves   loss account      equity
                           $'000       $'000      $'000          $'000       $'000

Balance at 1 January
2006                       2,965      11,194      2,292          2,724      19,175
Profit for the year            -           -          -          2,801       2,801
Effect of exchange rates       -           -      2,020              -       2,020
Share options credit           -           -         45              -          45
                         -------   ---------    -------        -------   ---------
Balance at 31 December
2006                       2,965      11,194      4,357          5,525      24,041
                         -------   ---------    -------        -------   ---------

Profit for the year            -           -          -          3,738       3,738
Effect of exchange rates       -           -      1,739              -       1,739
Share options credit           -           -        122              -         122
                         -------   ---------    -------        -------   ---------
Balance at 31 December
2007                       2,965      11,194      6,218          9,263      29,640
                            ====       =====       ====           ====       =====

Basis of preparation

This preliminary announcement does not constitute the statutory accounts of the
Group or the Company for the year ended 31 December 2007. Accordingly, the
financial information for 2007 is unaudited and does not have the status of
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
Financial information for the year ended 31 December 2006 has been extracted
from the Group's Annual Report and Accounts 2006, as filed with the Registrar of
Companies. The Auditors' report on the full financial statements for the year
ended 31 December 2006 was unqualified and did not contain statements under
section 237(2) of the United Kingdom Companies Act 1985 (regarding adequacy of
accounting records and returns), or under 237(3) (regarding provision of
necessary information and explanations). The full financial statements for the
year ended 31 December 2007 and the audit report thereon will be circulated to
shareholders and filed with the Registrar of Companies in due course.

The financial information contained in this preliminary announcement has been
prepared in accordance with the accounting policies set out in the full
financial statements for the year ended 31 December 2007.



1. Segment information
Primary reporting format - business segments

At 31 December 2007, the Group is organised into two main business segments:
(i), manufacture and sale of Oilfield Process Chemicals and (ii) manufacture and
sale of De-icing Solutions.

The Industrial Chemicals segment mainly comprises the sale of food additives,
sale of semi-finished products and provision of production facilities. These do
not constitute separately reportable segments.

In 2006, Industrial Chemicals was included under "Other". The disclosure below
in respect of 2006 has been revised to be on a basis consistent with that used
in 2007.

The segment results for the period ended 31 December 2007 are as follows:

                    Oilfield        De-icing      Industrial             Total
                     Process       Solutions       Chemicals
                   Chemicals       
                       $'000           $'000           $'000             $'000

Revenue               16,040          12,374           2,251            30,665
Segment operating
profit                 2,208           3,719             475             6,402
Central costs                                                           (1,663)
                                                                    ----------
Operating profit                                                         4,739
Finance costs and
net                                                                        558
foreign exchange
                                                                    ----------
Profit before
taxation                                                                 5,297
Taxation                                                                (1,559)
                                                                    ----------
Profit for the
year                                                                     3,738
                                                                        ======

The segment results for the year ended 31 December 2006 are as follows:

                                Oilfield      De-icing    Industrial         Total
                                 Process     Solutions     Chemicals
                               Chemicals     
                                   $'000         $'000         $'000         $'000

Revenue                            9,170        13,570         2,218        24,958
Segment operating
profit                             1,573         3,429           510         5,512
Central costs                                                               (1,489)
                                                                        ----------
Operating profit                                                             4,023
Finance costs and
net foreign                                                                    (90)
exchange
                                                                        ----------
Profit before
taxation                                                                     3,933
Taxation                                                                    (1,132)
                                                                        ----------
Profit for the
year                                                                         2,801
                                                                            ======

The total depreciation and amortisation cost included in the income statements for
the year ended 31 December 2007 and the year ended 31 December 2006 is as follows:

                                Oilfield      De-icing    Industrial         Total
                                 Process     Solutions     Chemicals  
                               Chemicals     
                                   $'000         $'000         $'000         $'000

Year ended 31
December 2007                        360           305            56           721
Year ended 31
December 2006                        216           321            63           600

The segment assets and liabilities as at 31 December 2007 and capital expenditure
for the period then ended are as follows:

                                Oilfield      De-icing    Industrial         Total
                                 Process     Solutions     Chemicals
                               Chemicals     
                                   $'000         $'000         $'000         $'000

Assets                            20,406        14,386         5,525        40,317
Liabilities                        6,692         3,042           943        10,677
Capital
expenditure                        1,509         1,284             -         2,793
Expenditure on
intangible assets                      -             -           232           232

The segment assets and liabilities as at 31 December 2006 are as
follows:

                                Oilfield      De-icing    Industrial         Total
                                 Process     Solutions     Chemicals
                               Chemicals     
                                   $'000         $'000         $'000         $'000

Assets                             8,699        11,710         5,706        26,115
Liabilities                          601           857           616         2,074
Capital
expenditure                          728         1,092           203         2,023
Expenditure on intangible              -             -             -             -
assets

Segment assets consist primarily of property, plant and equipment, inventories,
receivables and cash.

Segment liabilities comprise operating liabilities.


Secondary reporting format - geographical segments

The Group sells its products to customers located in two main geographical
segments: domestic sales and export sales. They are summarised in the table
below. Sales in the domestic market are to customers located in the Russian
Federation, where export sales are to the customers located mainly in Africa,
Europe, USA and CIS countries. The risks and rewards of selling to Africa,
Europe and the USA are deemed to be similar and so have been included as a
single geographical segment. Sales to CIS countries are less than 10% and so
have been included in this segment.

                                     Domestic            Export              Total
                                        $'000             $'000              $'000

Year ended 31 December 2007            24,887             5,778             30,665
Year ended 31 December 2006            20,343             4,615             24,958

Revenues are allocated based on the country in which the customer is located.
Assets and capital expenditure are primarily located or incurred in the Russian
Federation.

Company
The Company's business is to invest in its subsidiaries and, therefore, it
operates in a single segment.


2. Earnings per share (EPS)

                                                        2007             2006

Profit for the year ($'000)                            3,738            2,801
                                                   ---------        ---------
Number of shares - weighted average
Basic ('000)                                         172,321          172,321

Basic earnings per share (cents)                        2.17             1.63
                                                  ----------       ----------
Number of shares - weighted average
Diluted ('000)                                       172,321          175,570

Diluted earnings per share (cents)                      2.17             1.60
                                                  ----------       ----------

3. Post balance sheet events

On 18 January 2008, the Group acquired 100% of the share capital of Solith
Anlagenbau und Service GmbH ("Solith"). Solith, located in Austria, specialises
in the production and distribution of value added de-icing products, including
calcium chloride derivative "Brine C", used for motorway de-icing maintenance.
The maximum consideration payable by Zirax is Euro3.7m, satisfied by a cash payment
of Euro200,000 on completion, and the balance of up to Euro3.5m, payable via a
two-tier performance related earn out arrangement for the sale of product in
Austria over a maximum period of six years. As the acquisition only completed in
January 2008 a fair value exercise has not yet been performed. An initial
calculation of fair value will be undertaken and reported in the interim
financial statements as at 30 June 2008.


The assets and liabilities arising from the acquisition, provisionally
determined, are as follows:

As at 18 January 2008                                           Carrying value
                                                                         $'000

Property, plant and equipment                                            1,040
Inventories                                                                153
Trade and other receivables                                                507
Trade and other payables                                                  (769)
Borrowings                                                              (1,322)
                                                                      --------
Net liabilities acquired                                                  (391)
                                                                         =====


4. Timetable and distribution of accounts

The Annual Report and Financial Statements, together with the Notice of AGM and
Proxy form, will be despatched to shareholders on 18 April 2008 and the Annual
General Meeting will be held at 10 am on 12 May 2008 at the offices of the
company's solicitors Clyde & Co. 51 Eastcheap, London, EC3M 1JP.

Additional copies of the Annual Report and Accounts, Notice of AGM and Proxy
Form may be requested directly from the Company and will be available on the
Company's website www.zirax.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
FR FKAKBOBKDCQK

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