AGM Statement

Galiform PLC
18 May 2007


                                  Galiform Plc


   TRADING UPDATE AND AMENDMENT OF ONGOING SUPPLY AND LOGISTICS ARRANGEMENTS
                     BETWEEN HOWDEN KITCHENS AND MFI RETAIL


Following the disposal of the MFI retail business last autumn, the development
of Galiform is continuing on track and in line with management expectations.


Trading update


Howden Joinery continues to trade well. In the first four periods of 2007 (to 21
April), sales increased by 9.8% compared with the comparative period last year,
5.9% up on a same depot basis (see note below), partly reflecting the maturing
of depots opened in recent years. Gross margin was similar to that seen in 2006.


So far this year, 9 Howden Joinery depots have been opened and the business is
on course to open 60 depots this year, as planned.


As previously indicated, the performance of our Supply business has benefited
from the move to greater outsourcing instigated in 2006. The transitional
arrangements with MFI, including product demand, continue to be satisfactory.

Supply of products and logistics services to MFI Retail

Galiform is pleased to announce that it has reached agreement with MEP Mayflower
Limited ('MEP') on the terms of amendments to the ongoing supply and logistics
arrangements between Galiform's subsidiary, Howden Kitchens Limited (Supply),
and MEP's subsidiary, MFI Retail Limited (MFI).


These supply and logistics arrangements were agreed at the time of MEP's
acquisition of MFI in October 2006 and were due to terminate on 31 March 2008
(with Galiform being required to fulfil orders placed prior to 31 March 2008 up
until 30 June 2008).


Under the agreed amendments, Supply will cease all supply and logistics services
provided to MFI on 21 December 2007 (with final deliveries and payments
being made on that date).  All other aspects of the original arrangements with
MEP remain unchanged.

Supply currently both manufactures and sources products externally for Howden
Joinery and third parties, primarily MFI. Since May 2006, the majority of
products have been sourced externally. Manufacturing is now mainly focused on
the production of rigid and flat pack kitchen carcasses.

The amended terms enable us to bring forward a full review of the manufacturing,
warehousing and logistics requirements of Supply after the new termination date.
Details of the outcome of this review will be announced as decisions are taken.

The amended terms also brings forward the time at which the Group will be able
to give greater attention to focusing on the business opportunities available to
Howden Joinery and Supply.



Note: The inclusion of a 53rd week in the 2006 financial year (2006) means that
sales in the first four periods of the 2007 financial year (2007) are not
comparable with sales in the first four periods of 2006. This is because the
first week in 2007 (new year week) included 4 trading days, whereas the first
week in 2006 (Christmas week) had no trading days. Thus, the figures quoted are
based on a comparison of sales in the first 16 weeks of 2007 with sales in weeks
2 to 17 in 2006.


Enquiries


Investors/analysts


Gary Rawlinson Head of Investor Relations, [phone]

Galiform                                   [phone]

Media


Brunswick

Susan Gilchrist/Fiona Laffan/Anna Jones   [phone]



                      This information is provided by RNS
            The company news service from the London Stock Exchange