TGM Tellings Gldn

    Tellings Golden Miller Plc (the "Company")                   

                               Trading Statement                               

On 1 June 2005 the Board announced the sale of its London Bus Division. As a
consequence of this disposal, we commenced a re-organisation targeted at
slimming down the overhead base of the remaining business and focusing our
attention on continuing businesses to improve our margins. The re-organisation
process is now largely complete although we continue to seek alternative head
office premises.

Operationally, we announced in our interim statement issued on 31 August 2005
that our margins had suffered due to the impact of increased fuel and wage
costs. We have however successfully addressed a number of operational issues
which we anticipate will help to counter these unavoidable cost increases. At
the same time we are actively looking to build our business and to this end
have already succeeded in winning a new National Express contract, several new
contracts for coach private hire and been awarded, following re-tender, many
bus contracts at significantly increased rates.

 

Notwithstanding the above successes and as a result of the disposal and
re-organisation costs to bring our overhead in line with the reduced size of
the Group, profitability of the residual group will be significantly reduced in
the current financial year. While this is disappointing, it should be seen in
the context of the significant growth achieved over recent years, the profit on
sale of the our London bus division totaling approximately �16m earlier in June
2005, followed by the special dividend of �13.5 million or 60p per share paid
on 31 August 2005.

Subsequent to the payment of the special interim dividend of 60 pence per share
announced by the Company on 11 August 2005 net assets of the Company as at 30
June 2005 were approximately �10.0 million.

It is the Board's intention, once restructuring has been completed, to rebuild
the Group's size and profitability and to commence this process in 2006.



END

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