Brooke Industrial Holdings PLC
28 September 2000
BROOKE INDUSTRIAL HOLDINGS PLC
TRADING STATEMENT
The Board is disappointed to announce that a drop in UK demand during the
summer has affected the Group's trading such that the result for the year
ending 30 September 2000 will be below the Board's and the market's
expectations.
In the Company's interim statement dated 16 June 2000, the Company's Chairman
reported that the Board were encouraged by the initial benefits being realised
as a result of reorganisation and investment and looked forward with
confidence to an improved second half of the financial year. Whilst trading
in the third quarter showed progressive recovery, a fall off in UK demand
during July and August has resulted in a fall in turnover and profits from the
levels anticipated by the Board at that time.
The Board's initial optimism following a promising third quarter were
undermined by significant reductions in activity levels in the UK and Europe
during July, worsening throughout the month of August as the traditional
summer shutdown appeared to be extended to a longer period than normal.
Whilst, September order input has returned to the improved levels experienced
during the third quarter and advance orders for the coming financial year are
still running at an encouraging level, this recovery will be short of the
level of activity required to make up the losses suffered during the summer.
Despite the fall off of demand in the UK, turnover in our non-UK based
operations in the final quarter of the year have remained in line with the
Board's previous expectations.