BAE.L Regulatory News (BAE)

BEALE PLC

INTERIM MANAGEMENT STATEMENT

AGM STATEMENT, TRADING UPDATE

18 March 2010

In his address to shareholders at the Company's Annual General Meeting this afternoon, Chairman Mike Killingley will say:

"Unsurprisingly, given that the areas in which our stores are located - principally the north-west, south and south-east of England - were disproportionately affected by snow, sales in the first two weeks in January were below those of last year. This contributed to like for like sales, including concessions but excluding VAT, for the 19 weeks to 13 March 2010, being 1.8% less than for the previous year. For the 13 weeks to 30 January 2010, our first quarter, they were 3.3% less than for the previous year.

However, since the end of the snow, trading has continued to improve: sales during the six weeks since 31 January, including concessions but excluding VAT, were 3.9% up on the previous year.

The Board is particularly pleased that first quarter sales were achieved at an improved gross margin compared with the previous year. This was achieved despite the promotional discounting required to be competitive over Christmas. There were further encouraging signs of the progress being made in the Group's strategy of seeking better own bought margins; in the first quarter these were 1.2 percentage points better than in the same period last year despite the adverse impact of the increase in VAT on 1 January 2010.

Furthermore, expenses were lower than last year as we continued to focus on cost reduction; together with the stronger margins, this has enabled us to achieve an improved profit for the first quarter.

As reported at the end of January, we have continued to operate well within our bank facilities. We expect that the remainder of the year will continue to be challenging, but we have a strong balance sheet and the Board believes the strategies and actions being taken will in due course restore the Group to profitability.

On 18 February one of our shareholders, Mr Andrew Perloff, announced that, through Panther Securities plc, a listed property investment company, he had acquired shares which lifted his shareholding in the Company from just under 10% to 29.72%. These shares were acquired from Lawdene, previously our largest shareholder, whose interest in the Company is now 4.5%.

Since that announcement was made we have met Mr Perloff. He shares the Board's ambition to increase the size of the Group and would be keen to help facilitate such growth if it is possible to do so. There are no specific proposals to bring to you at this time, but we shall of course make a further announcement if and when it is appropriate to do so."

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