Trading Statement
03 Abril 2008 - 11:00AM
UK Regulatory
RNS Number:5453R
International Greetings PLC
03 April 2008
3 April 2008
Embargoed 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 strategic
review of the Company's UK Greetings Division, action has now been taken in a
number of areas to reduce costs and increase performance. This has been
necessary in order to offset the extremely tough conditions surrounding the UK
retail climate.
Specifically, at the South Wales manufacturing facilities, a number of processes
are being rationalised and the Company has announced today to the Division's
staff that the permanent workforce will need to be reduced. To this end a 90 day
consultation period has been entered into.
In addition, all operational activities in the Division's associated Latvian
factory have been discontinued, with goods previously manufactured in that
location now being produced at the International Greeting's factory in China or
out-sourced.
In the course of its review of the UK Greetings Division to establish the
optimum recovery plan, the new management team has identified the full extent
and cost of the production and process problems experienced. Primarily as a
result of this Division's performance, the Group is now expected to make a
pre-tax loss of circa �3m before exceptional items and the results of
discontinued operations for the year ending 31st March 2008.
The Board reiterates its confidence in the Group's other businesses and
commitment to focus on and develop its core profitable activities. With the
reduction of the cost base and focus on margin enhancement in the UK Greetings
Division, an improved performance for this business and a return to profit for
the Group as a whole is confidently expected for the current year.
For further information:
International Greetings PLC Tel: 01707 630630
Nick Fisher, Chief Executive
Arden Partners plc:
Richard Day Tel: 020 7398 1632
Tom Fyson 020 7398 1637
Tavistock Communications Tel: 020 7920 3150
Jeremy Carey
This information is provided by RNS
The company news service from the London Stock Exchange
END
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