Trading Statement

19 January 2021

Mountfield Group Plc ("Group" or "Company")

Trading Statement

Mountfield Group Plc, the AIM quoted commercial flooring and specialist construction company, provides the following update in respect of its current trading.

The Group's recent trading statements have referenced the difficult trading conditions that the Group and its subsidiaries have faced as a result of the lockdown and the changes in workplace regulations that followed the first attempt to control the spread of COVID-19 in March 2020.

Although the beginning of the Government's mass vaccination campaign brings hope for an improvement to the Group's trading in the medium term, the extent of any improvement remains uncertain as it is unclear what impact the pandemic will have on the longer-term demand for its services in connection with the construction of data centres and City office space, two areas that drove the substantial increase in the Group's profitability in recent years.

Management accounts for the second half of 2020 demonstrate the impact of the pandemic on the Group in that it achieved a level of profitability lower to that for the first half. With reduced levels of demand, current trading performance would not indicate an improvement from that reported for the first six months of 2020. 

As a result of the difficult trading conditions and the uncertainty as to which areas of construction will be in demand following the pandemic, the Board is considering making structural changes to the Group to improve shareholder value.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

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Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as "believe", "could", "should", "envisage'', "estimate", "intend", "may", "plan", "potentially", "expect", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.