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Yorklyde PLC (YKLD)

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Wednesday 07 February, 2001

Yorklyde PLC

Trading Statement

Yorklyde PLC
7 February 2001

                         Yorklyde plc
           
            Proposed Disposals & Trading Statement

Yorklyde   plc,  a  manufacturer  of  high  value  cloth   and
accessories for the luxury goods sector and high specification
fabrics  for  use  in the transport industry, announces  today
that  it  intends to dispose of its two outerwear  businesses,
Westcountry Clothing Limited and Invertere Coat Company, based
in  Newton  Abbot,  Devon. Expressions of interest  have  been
received and it is hoped to make a further announcement by the
time  of the Group's preliminary results announcement for  the
year ended 31 January, in early April.

After   rationalisation  last  year   and   strengthening   of
management  and  marketing functions, sales  have  started  to
recover,   but  the  businesses  have  continued  to   sustain
operating losses in the financial year ended 31 January  2001.
Combined  turnover totals around £1.15 million per  annum  and
net  assets  of the businesses amount to around £0.9  million.
The decision to dispose of the businesses has been taken after
a  comprehensive strategic review by the Board concluded  that
neither  fitted  into Yorklyde's core weaving activities,  and
that  it would be sensible to dispose of the businesses  to  a
purchaser  who will be better placed to release the  potential
of   the   companies  through  common  garment   manufacturing
experience and facilities.

Westcountry, established in 1987 on the original site  of  the
Invertere  Coat  Company, specialises in  the  manufacture  of
duffel  and sporting coats and employs 46 staff.  It has  been
successful  in carving a niche in the luxury outerwear  market
both  with  its  own  brand  of  clothing  and  with  clothing
manufactured  on behalf of branded luxury goods  retailers  in
the  UK, USA, Europe and Japan.  Invertere was purchased  from
Daks Simpson in 1998 and is well known for the manufacture  of
high quality outerwear in the UK and overseas.

As  disposal proceeds are not expected to be material, a  loss
on  disposal is likely after allowing for goodwill  and  write
down  of  assets. As anticipated at the time  of  the  interim
results  in September, the core continuing businesses  of  the
Group  have  been profitable in the financial  year  ended  31
January 2001.

Commenting, Charles Brook, Chairman of Yorklyde plc, said:

'The  strategic focus of Yorklyde's business has traditionally
been  on  its  weaving activities. Today's  announcement  will
enable us to commit our resources fully to the core continuing
operations, manufacturing high value cloth and accessories for
the luxury goods sector and high specification fabrics for use
in the transport industry.

'I  am  pleased to able to confirm that as expected  the  core
continuing  businesses have returned to profitability  in  the
financial  year  just  ended.  I  look  forward  to  reporting
further on the Group's progress in April.'

For further information, please contact:

Yorklyde plc                                      01484 683611
Charles Brook, Chairman
Humphrey Scott, Finance Director

Golin/Harris Ludgate                             020 7253 2252
Reg Hoare/Katie Jackson



           

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