TOMKINSONS PLC
20 August 1999
TOMKINSONS plc
Trading Statement and Takeover Discussions
The Company has been in takeover discussions, which have involved
more than one party, for some time. The Board is therefore pleased
to announce that discussions are at an advanced stage on the terms
of a cash and share offer at or around the prevailing share price
of 180p, full details of which will be announced and sent to
shareholders in the near future.
These discussions have absorbed considerable management time and
have proved a distraction from the normal running of the business.
The Board recognises the adverse impact that such a prolonged
period of uncertainty has had on both morale and performance.
For the six months ended 3 April 1999 the Company reported a
decline in sales of 3.8% compared to the previous year. This
performance reflected the difficult market conditions during the
period and was consistent with the deterioration in consumer
demand being reported by the major home furnishing retailers.
Since the interim announcement, trading has fallen further behind
such that sales for the ten months to 31 July were 6.6% lower than
last year, albeit on an equivalent number of sales weeks the
shortfall was 4.4%. There has been little evidence of improvement
in the retail sector during recent months, though traditionally
demand for residential carpets is at its lowest during the summer.
As previously reported, the Company has continued to invest in its
product base and the infrastructure to support new marketing
initiatives. The benefits of this investment will come through in
the months ahead, however, the cost base will have increased in
the short term.
For further information please contact:
Mike Hield, Chief Executive, Tomkinsons plc 01562 820 006
Andy Yeo, Buchanan Communications 0171 466 5000