Trading Statement

Millfield Group PLC
02 March 2006


Millfield Group plc

Financial Update and Board Changes

On 1 December 2005 the Group announced in its interim statement that it would
report an operating profit from the third quarter of 2005/6 onwards.  It has
become apparent that, as a result of a number of factors including late reported
costs and lower than expected December trading, the Group has incurred a loss at
operating level for the third quarter (before any goodwill adjustment).
However, we have reduced the cost base from £49m per annum in November 2004 to
£29m per annum at December 2005 in line with our forecast.  Initiatives are in
place which should reduce this to £28m per annum by the end of the first quarter
of 2006/7.


The Board has instructed the Group's auditors to assist the financial management
of the company in reviewing aspects of its operating results and will report the
results of the review when it has been completed.


The Board of Millfield Group plc is delighted to announce that Alan Easter has
agreed to join the Board as Group Sales and Marketing Director.  Alan has
previously held senior sales management positions at AXA Sun Life, Scottish
Life, AMP NPI and is currently at London and Capital


Diane Gray-Smith has also been appointed as interim finance Director, in place
of our current interim finance director, Arthur Milton, who has resigned from
the Board.  Diane is currently completing an interim assignment with Kazakhmys
plc, and her previous experience includes periods with Einstein Asset Management
(a hedge fund), Interactive Investor and with Navigator Holdings plc.


For further information please contact:


Paul Tebbutt, CEO, Millfield on 07958 992812
Mark Llewellyn-Slade at Llewellyn-Slade PR on 07770 380647



2 March 2006






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