Trading Statement

Actif Group PLC
01 September 2005

                                                                1 September 2005


                                 Actif Group plc
                                ( the 'Company')

                                 Trading Update


In the Company's interim statement in April this year, the Chairman reported
that whilst the first half of the financial year to 29th January 2005 was
broadly in line with expectations, the Company was seeing much tougher trading
conditions in the second half to date. He also stated that the Company did not
anticipate any improvement in market conditions for the remainder of the
financial year.


These challenging market conditions have had a greater impact on the Company's
trading performance through the second half of the financial year than
previously anticipated. Total ELLE retail sales for the 26 weeks to 30th July
2005 were 14% below last year, a like for like decline of 13.5%. In wholesale
sales, buyers are continuing to be very cautious about placing Autumn / Winter
orders, resulting in sales coming through at broadly level with last year.


The timing of this consumer downturn has masked some of the improvements the
Company is making in the product offer and the Board is encouraged by the early
progress Catherine Scorey, the recently appointed Commercial Director, has made
in revitalising the ELLE ranges. The improvements have been particularly
noticeable on core 'heritage' styles where improved sell through rates, and
European sourcing have contributed to significantly reduced stock levels, which,
in turn, has helped to protect the Company's cash position.


Overall though, in common with many other retailers, the Company is seeing
profitability being adversely affected by weak levels of demand relative to last
year, and significant pressures on the cost base through rising retail rents,
business rates and energy costs. The Board now expects these conditions to
continue through 2006.


In response to this, the Board has developed and is currently implementing plans
to realign the Company's cost base to a level appropriate to this reduced
opportunity. The Board expects to see annualised savings in the region of
£750,000 per year, which equates to around 20% of central overhead. The large
proportion of this saving relates to a reduction in head office workforce, which
was completed this month, and will ensure that the Company is able to benefit
from the majority of these expected cost savings in the new financial year.


As a consequence of the impact of the market conditions on second half trading,
and the costs of implementing the business realignment plan, the Board now
expects the Group to make a loss before tax of around £450,000 for the 12 months
to 30th July 2005.


The final results for the financial year to 30th July 2005 will be announced in
October.


Mark Evans, Chief Executive of Actif Group comments:

'Clearly it is very disappointing to report on a loss-making year. However, in a
tough market environment, we have taken quick and decisive action to implement a
business reorganisation plan to ensure the Group is in a strong position to ride
out this consumer downturn. Our core product offer, focusing on ELLE's heritage
as a stylish, casual brand, continues to have broad market appeal and a
well-established distribution network. Our improving strength in design and
sourcing will enable us further to differentiate our offer, which we believe is
key to the continued appeal of the ELLE brand in a very competitive UK clothing
market.

We will seek further opportunities to reduce our cost base without compromising
these core strengths, and in so doing will ensure we are positioned to take
advantage of any improvement in market conditions through 2006'



Enquiries:

Mark Evans, Chief Executive, Actif Group plc               Tel: [phone]
Wendy Baker, Hudson Sandler                                Tel: [phone]






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