Trading Statement

19 Apr 2005 07:00

4Less Group plc (The)19 April 2005 The 4Less Group Plc ("The Company") Trading statement 19 April 2005 As advised in the trading statement and interim results issued by the Company inDecember 2004, the Company has undertaken successfully a full review of itsactivities, future strategy and ongoing cost structure. The Company has focussed on its core competencies of Retail and Corporateforeign currency exchange, and arranging overseas mortgages, to ensure a solidfoundation from which the Company can develop its profitability. Management changes Charles McLeod has assumed the role of non-executive director. Activity changes The activities of FLG Corporate Services and the corporate element of FLGInsurance Brokers have failed to generate expected levels of revenue andprofitability and these divisions have been suspended. The Company continues toprovide insurance products to overseas home owners. www.Car-Finance4Less.com Limited, the subsidiary providing car finance brokingservices has failed to make any returns for the company and has been sold toCharles McLeod for a nominal sum. The Company has also streamlined its UK trading floor operations and its Spanishbased activities in Marbella. These actions and the cessation of non-core activities have resulted insignificant cost reductions for the Company. After a difficult periodmanagement is now in a position to give its full attention to the continuingprofitability of the core currencies and overseas property mortgage businesses. Current trading Trading during the first three months of 2005 was difficult throughout theCompany's markets. Despite this, the core activities have continued to generatesignificant gross profits. The effect of the reorganisation and reduction incost base is that the Company is now able to trade profitably at lower levels ofactivity. As part of the review, the Company has introduced new accounting and internalcontrols including back office and compliance systems, and this will remain akey area of focus for management. The Company has also substantially completed three major marketing initiativeswith the assistance of external consultants to re-examine its methods ofdeveloping its profile in the marketplace. Outlook The directors still anticipate that the Company will make a trading loss for thefull year in line with its interim statement, before the costs associated withthe reorganisation. The directors estimate that the reorganisation costs whichinclude the exceptional costs of redundancies are approximately £190,000.Following this reorganisation, the Company is a simpler and more focussedfinancial services business. Results It is anticipated that the results for the year ended 31 March 2005 will bereleased in July. Further information: Nigel Paul - Chief Executive Officer, The 4Less Group PlcTel: 0207 594 0515 Olly Cairns - Corporate Synergy PlcTel: 0207 7626 2244 This information is provided by RNS The company news service from the London Stock Exchange