Trading Statement

Allen PLC
14 February 2001


FOR RELEASE                    7.00AM                    14 February 2001

                                  ALLEN PLC

                                  ('Allen')

GROUP UPDATE AND TRADING STATEMENT

Key points:

*     Speedy to be the sole focus of the Group going forward

*     Group to be renamed Speedy Hire Plc

*     Speedy trading in line with expectations

*     All other businesses and assets to be sold in a phased disposal
      programme

*     Don Greenhalgh and Ken Fox to leave the Group board to formulate an
      offer for building contracting

*     Significant trading issues in building contracting and utility services

*     David Wallis appointed Chairman, John Brown appointed CEO and further
      board appointments expected in the near future

*     Final dividend for the year to be maintained

*     KPMG Audit Plc to be appointed as auditors





Background



On 27 November 2000 Allen announced the board's objective to establish its
hire services business, Speedy, as a separate quoted company.  The key
rationale for this was the board's belief that Speedy was significantly
undervalued as part of the Allen Group.



Future strategy



Since this announcement the board has been evaluating the best way to separate
Speedy from the other Allen Group companies.  The board has now concluded that
the appropriate method to achieve this objective is through a phased disposal
over time of all Group assets not related to Speedy.



To reflect the importance of Speedy to the Group the board will propose that
the name of the Group is changed to Speedy Hire Plc at the next meeting of
shareholders.



Trading



The overall Group result for the current year will be severely impacted by a
number of one-off costs and trading issues which are referred to below.



Speedy



Speedy has performed well.  The board expects that the operating profit for
Speedy for the full year will be approximately £17 million.



Like for like tool hire turnover has increased by 15% in the first 9 months of
the year.  Speedy continues to gain market share from its rivals.  Turnover
from the acquisition of Rapid Hire is currently exceeding expectations.
Speedy now trades from 180 tool hire depots after the opening of 11 '
greenfield' sites during the year.  Lease negotiations have commenced for a
further 6 'greenfield' depots.  The new region, Speedy Western, is now fully
operational and will greatly enhance Speedy's presence in this market.



Speedy Space continues to perform in line with expectations and its fleet has
increased to 10,150 cabins.



After the successful launch of Speedy Power with the first depot in Kent, a
second unit has now been opened in Teeside.



Building Contracting



At the interim stage Allen reported a loss in building contracting as a result
of the poor performance of certain large contracts.  The board announced the
appointment of Nick Davies as the Managing Director of the building division
and that a number of actions were being taken to improve the performance of
this division but that the benefits of these actions were expected to take
some time to come through.



Nick Davies and his team have been conducting a thorough review of the
contracts in this division.  As a result of this review the board now expects
the losses within this division will be much greater than previously expected.
  The problem contracts were entered into by the previous management of the
building contracting division without following Allen's normal appraisal and
approval procedures.  The board is confident that the actions which have been
taken by Nick Davies and his new team will ensure that appropriate appraisal
and authorisation procedures are followed in the future.



As a result of this review, the board now expects that the full year operating
loss could be as high as £13.0 million.



The board believes that it would take significant investment by the Group to
improve this business over the medium term and such investment would be better
directed to Allen's future core business, Speedy.  Accordingly the board has
taken the decision to sell this division although it recognises that funding
for this division will be required.



Don Greenhalgh and Ken Fox have expressed interest in acquiring the building
contracting division and accordingly have resigned from the board in order to
form an offer for this division without a conflict of interest.



Utility Services - Ryan



In the interim announcement the board stated that in the current financial
year, its continuing utility services business, Ryan, had commenced several
major new contracts.



The volume and mix of work to Ryan on part of one of these contracts to its
major customer has not met management's expectations.  Ryan is currently in
discussions with this customer.



The operating result for Ryan in the current financial year will be highly
dependent upon the outcome of these discussions.  If no agreement is reached
with this customer, then Ryan would be loss making in the current financial
year.  The level of these losses would be approximately £1.5 million.



Further, if agreement cannot be reached with this customer the board would
need to consider whether it could continue to support this contract.  If it
could not, further material exceptional costs related to the exit from this
contract would be incurred.



As part of the board's commitment to focus on Speedy, Ryan will not form a
core part of the Group in the medium term and at the appropriate time offers
will be sought for this company.



Other items



Exceptional costs for the year are expected to be £8.0 million.  This amount
relates mainly to transaction costs and settlement of the claim by Morris
Group Limited in respect of the sale of Allen Homes; losses on the run down or
sale of Pearce; and advisory and other costs in respect of the evaluation and
implementation of the options for Speedy.



This amount does not include any exceptional cost which could arise in respect
of the contract between Ryan and its major customer.  The claim by Morris
Group Limited has now been settled within the amount previously provided.



Total



Accounting for all the items above the approximate base level of Group
operating profit before exceptionals for the year would be as follows:


                                                                             £m
Speedy Hire operating profit                                               17.0
Building contracting operating loss                                      (13.0)
Ryan operating loss                                                       (1.5)
Unrecovered central overhead                                              (1.1)
Loss on discontinued activities (per interim statement)                   (1.1)
Operating profit                                                            0.3






Board changes



As stated Don Greenhalgh and Ken Fox have resigned from the board so that they
can formulate an offer for the building contracting division without a
conflict of interest.



To reflect the future emphasis in focus on Speedy by the Group the following
board changes have been made.



David Wallis has been appointed Chairman.  He joined the Group on 22 June 2000
as a Non-Executive Director and is currently a Non-Executive Director of Geest
plc and the Chairman of several venture capital backed private companies.  He
was previously the Group Managing Director of Merchant Retail Group plc.



John Brown has been appointed Chief Executive Officer.  He is currently the
Managing Director of the Hire division and has been responsible for the
development of Speedy since its inception in April 1977.



It is also intended that additional Non-Executive Directors will be appointed
to the board in due course.  Discussions are already taking place with several
candidates and an announcement is expected in the near future.



Don Greenhalgh and Ken Fox have been instrumental in building the Group over a
number of years and the board expresses its sincere gratitude to each of them
for their loyal and unstinting dedication to Allen.



Dividend



It is the board's intention, subject to unforeseen circumstances, to recommend
a maintained final dividend of 8.3p per share for the current financial year.



Auditors



KPMG Audit Plc has been assisting the company and has been performing a
detailed review of the Group's operations, accordingly, the board intends to
appoint KPMG Audit Plc as auditors to the Group for the current financial
year.



For further information:



Allen Plc

David Wallis, Chairman                                  07711 647 963

John Brown,Chief Executive Officer                      07720 544 144

Neil O'Brien, Finance Director                          01204 699 277



Binns & Co Public Relations

Brian Coleman-Smith                                     020 7786 9600