Trading Statement

2 Mar 2006 07:12

Millfield Group PLC02 March 2006 Millfield Group plc Financial Update and Board Changes On 1 December 2005 the Group announced in its interim statement that it wouldreport an operating profit from the third quarter of 2005/6 onwards. It hasbecome apparent that, as a result of a number of factors including late reportedcosts and lower than expected December trading, the Group has incurred a loss atoperating level for the third quarter (before any goodwill adjustment).However, we have reduced the cost base from £49m per annum in November 2004 to£29m per annum at December 2005 in line with our forecast. Initiatives are inplace which should reduce this to £28m per annum by the end of the first quarterof 2006/7. The Board has instructed the Group's auditors to assist the financial managementof the company in reviewing aspects of its operating results and will report theresults of the review when it has been completed. The Board of Millfield Group plc is delighted to announce that Alan Easter hasagreed to join the Board as Group Sales and Marketing Director. Alan haspreviously held senior sales management positions at AXA Sun Life, ScottishLife, AMP NPI and is currently at London and Capital Diane Gray-Smith has also been appointed as interim finance Director, in placeof our current interim finance director, Arthur Milton, who has resigned fromthe Board. Diane is currently completing an interim assignment with Kazakhmysplc, and her previous experience includes periods with Einstein Asset Management(a hedge fund), Interactive Investor and with Navigator Holdings plc. For further information please contact: Paul Tebbutt, CEO, Millfield on 07958 992812Mark Llewellyn-Slade at Llewellyn-Slade PR on 07770 380647 2 March 2006 This information is provided by RNS The company news service from the London Stock Exchange