Trading Statement

Lupus Capital PLC
27 July 2007


                                        27 July 2007

LUPUS CAPITAL PLC

LUPUS TRADING UPDATE FOR 6 MONTHS TO 30 JUNE 2007





Lupus is pleased to report that the group is trading in line with expectations.



Gall Thomson, the manufacturer of breakaway couplings, has enjoyed buoyant
markets in the first six months of 2007 and is expected to deliver record
performance both in sales, profits and cash generation.



Schlegel, a leader in the global manufacture and marketing of door and window
seals, has produced good results leading on from the operational initiatives
that were taken following its acquisition in April 2006.



Schlegel US is now being combined with the US door and window seal division of
Laird Group under a single management team to increase their prospects and
profitability.  Many synergies will follow which will include a fully
comprehensive product range for their customers, greater purchasing power for
raw material sourcing, operational cost savings, the closure of one
manufacturing facility and increased product development.



Schlegel (non US) continues to thrive with good growth coming from the European
markets of Germany, Spain, UK and Eastern areas.  The management of Linear, the
Laird UK seals company, has now been taken on by our Schlegel team which has
produced many cost saving opportunities resulting from optimising production
allocation between countries and also improving customer service.



Laird Security Systems, a division acquired from the Laird Group on 27 April
2007, is a manufacturer of products such as locks, handles, hinges and balances
for the US and UK door and window industry.  Sales are approximately 60 per cent
to the refurbishment/remodelling (RMI) market and the remainder to new build.
RMI has been steady throughout the world in contrast to the US new build market,
which is subject to lower housing starts and completions.  Cost reductions,
improved marketing and careful control of working capital have been necessary in
order to retain an acceptable level of profitability in the US.  In the UK,
where the market is stronger, there are also many opportunities for similar
actions.



Input prices for raw materials are still high, although more stable than a year
ago. The dollar/pound exchange rate at over 2 is not favourable when converting
US profits.  At the corporate level, however, the currency exposure has been
mitigated by designating a substantial portion of the debt taken on for the LSS
acquisition in US dollars.  We continue to examine ways to optimise our
worldwide tax position and expect some success in achieving this.



Overall, we feel optimistic about the progress and prospects for the group and
we look forward to another period of strong performance and the further
development of Lupus Capital plc.



Enquiries to:
Greg Hutchings                     020 7976 8000
Alan Frame                         020 7405 7777
Nick Donald (HSBC - Nomad)         020 7991 8888


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