Trading Statement

Artisan (UK) PLC
19 October 2006







19 October 2006

                                ARTISAN (UK) PLC



                                 Trading Update



Artisan (UK) plc ('Artisan ' or 'the Group'), the AIM listed house builder and
business park developer today issues the following statement ahead of the
Interim results for the six months to 30 September 2006, which it expects to
release on 12 December 2006.



The Group has met different market conditions and circumstances for the two
divisions within the Group.



Artisan (UK) Developments ('ADL'), the business park division, has enjoyed a
positive marketplace during the period, receptive to the quality, presentation
and size of product offered.  Although achieving a contractual position on most
sales takes longer than expected, the Board is satisfied with the sales and
margins being achieved by this division.



However at Rippon Homes, the residential developer, the marketplace is more
difficult.  Although our informal surveys of the market suggest that this
division is obtaining more than its share of available sales, each sale is
proving hard won.  As a consequence of relatively static sales prices and more
recently purchased land being utilised, the margins achieved by the Group are
affected adversely.



Sourcing new land remains essential to the future development of the Group.  We
anticipate that sites currently in the process of negotiation will shortly be
contracted and sites that are secured subject to contract will be granted the
required planning permission.  We are pleased to report that Rippon Homes now
has a new land buying team fully in place and we are seeing more opportunities
for management to evaluate and tender for land.



After some recent success in obtaining new sites for current developments, ADL
continues to seek new land to provide for the requirement in future years, but
is finding fewer suitable sites available for evaluation at present.  We have
evaluated some larger sites but they have been discounted because they did not
meet our required rate of return.



The market prices for land show no sign of diminishing and this underlines the
value of the balance sheet assets of the Group.



For both residential and commercial sites, obtaining appropriate planning
permission within reasonable timescales continues to be difficult and
consequently slows the acquisition and development of sites.  Whilst both
divisions have made progress, for this very reason some sales expected on new
sites for the current period will be deferred and we shall seek improved sales
on existing sites.  The outlook for the remainder of the 15 month period also
remains dependent on attracting new sales reservations, particularly new
residential reservations in the first quarter of 2007.  The recent rise in
interest rates has not in itself significantly affected the market, but future
decisions of the Monetary Policy Committee on interest rates could yet be
decisive.



As announced by the Chairman in his AGM statement Artisan (UK) plc is changing
its basis of accounting from reporting under UK Generally Accepted Accounting
Principles (UK GAAP) to reporting under International Financial Report Standards
('IFRS').   The interim results will be the first period under the new
standards.  A consequence of the change to IFRS is that a significant £2.4 m
investment sale which had exchanged at the end of the year to 31 March 2005 but
did not complete until April 2005 is now reflected in the year to 31 March 2006.




Also as announced previously the board has decided to move the Group's year end
from 31 March to 30 June. Following the announcement of the interim report to 30
September 2006 as detailed above, the Group will issue a trading update
following the completion of the 3 months trading to 31 December 2006 during the
first quarter of 2007 and a preliminary statement of the audited results for the
fifteen month period to 30 June 2007 by 30 September 2007.  A separate
announcement today details the changes required as a result of moving to IFRS
and shows the results for the six months to 30 September 2005 and the year ended
31 March 2006 restated under IFRS and a reconciliation of the differences
between UK GAAP and IFRS.







Artisan (UK) plc                                01480 436666
Chris Musselle, Chief Executive


Brewin Dolphin
Ifor Williams                                   0121 236 7000


Bankside Consultants                            020 7367 8888
Simon Rothschild/Louise Mason                   Mobile: [phone]




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