Chairman's Statement

Allen PLC
26 July 2000


                               
                           ALLEN PLC
    (Hire Services, Housebuilding, Utility Services / Civil
              Engineering, Building Contracting)

                 FOCUS ON SERVICES ACTIVITIES
                               
*    Hire Services like-for-like sales up 14% in first quarter
*    Utility Services: new contracts started well and running
     to expectations
*    Exit from Housebuilding being actively pursued
*    Margin pressure in building contracting continues
*    Group confident of another good result


Speaking  at  the Annual General Meeting in Manchester  today,
Donald Greenhalgh, the Chairman, made the following comments:

'This  will  be a year of significant change as we  focus  our
development on our services related activities.

'The  Hire Services Division continues to show strong  growth.
Last  year it accounted for 63% of operating profits.  In  the
first  quarter  of  the current financial year,  like-for-like
tool  hire  turnover  was up 14% and overall  sales  are  well
ahead.

'Building  on  the  record results of last year,  our  Utility
Services  / Civil Engineering Division is performing well  and
the outlook for the current year is encouraging.

'At  the time that we released our preliminary results we said
that  we planned to withdraw from housebuilding and to  direct
future  funds  and resources to the hire and utility  services
businesses  which provide higher returns on  capital.  We  are
actively  pursuing  alternatives for  the  planned  exit  from
housebuilding.

'In  our  Building Contracting Division the  results  to  date
reinforce our prediction in our preliminary announcement  that
we  will  be  unlikely  to improve on  last  year's  operating
margins.

'Our strategy is to concentrate on higher return areas of  our
business  and  we  are confident that this  focus  will  bring
significant shareholder benefits in the medium term.'

For further information contact:

Ken Fox (Chief Executive)              01204 699277
Neil O'Brien (Finance  Director)       01204 699277
(2.30 pm - 5.00 pm)
Brian Coleman-Smith                    020 7786 9600
Binns & Co Public Relations
(12.15 pm - 6.00 pm)