Design Group Regulatory News (IGR)

3 Apr 2008 14:00

International Greetings PLC03 April 2008 3 April 2008Embargoed 1pm INTERNATIONAL GREETINGS PLC ("International Greetings" or "the Group") UK Business Reorganisation and Year End Trading Update Following the trading statement made on 11 February, regarding the strategicreview of the Company's UK Greetings Division, action has now been taken in anumber of areas to reduce costs and increase performance. This has beennecessary in order to offset the extremely tough conditions surrounding the UKretail climate. Specifically, at the South Wales manufacturing facilities, a number of processesare being rationalised and the Company has announced today to the Division'sstaff that the permanent workforce will need to be reduced. To this end a 90 dayconsultation period has been entered into. In addition, all operational activities in the Division's associated Latvianfactory have been discontinued, with goods previously manufactured in thatlocation now being produced at the International Greeting's factory in China orout-sourced. In the course of its review of the UK Greetings Division to establish theoptimum recovery plan, the new management team has identified the full extentand cost of the production and process problems experienced. Primarily as aresult of this Division's performance, the Group is now expected to make apre-tax loss of circa £3m before exceptional items and the results ofdiscontinued operations for the year ending 31st March 2008. The Board reiterates its confidence in the Group's other businesses andcommitment to focus on and develop its core profitable activities. With thereduction of the cost base and focus on margin enhancement in the UK GreetingsDivision, an improved performance for this business and a return to profit forthe Group as a whole is confidently expected for the current year. For further information: International Greetings PLC Tel: 01707 630630Nick Fisher, Chief Executive Arden Partners plc:Richard Day Tel: 020 7398 1632Tom Fyson 020 7398 1637 Tavistock Communications Tel: 020 7920 3150Jeremy Carey This information is provided by RNS The company news service from the London Stock Exchange