Trading Update and Disposal

RNS Number:5470B
TGI PLC
3 April 2001



                           TGI plc
                   ("TGI" or "the Group")
                              
                 Trading Update and Disposal

Trading Update

The  Board of TGI announces that it expects results for  the
year  ended  31  March  2001  to  be  below  current  market
forecasts.

A  combination of soft trading conditions in a number of its
principal markets has produced a sales shortfall at some  of
the Group's operations in the final quarter of the financial
year.

At the time of the Group's interim results in December 2000,
the  Board indicated that trading conditions for the Group's
Automotive business remained difficult, not least the impact
of  the continued strength of sterling against the Euro  and
sterling's  weakness  against the dollar.   The  Group  also
warned  that major changes in the profile of its  automotive
customer base would have an adverse impact on volumes in the
short  term.   This situation has persisted  into  2001  and
necessitated further management action to address  the  cost
base.  Despite this action the financial performance of  the
Automotive business was disappointing.

Sales  at  Audix, the Group's public address business,  were
impacted  by  the deferral of a number of contracts  in  the
closing months of the year.

Although  our Professional and Hi-Fi businesses, Tannoy  and
Martin  Audio,  completed a year of  strong  and  profitable
growth,  sales growth in the final quarter of the year  fell
below  earlier expectations as the overall market tightened.
Again,  the strength of sterling impeded progress in Europe.
The  July  2000 acquisition of Lab Gruppen, a Swedish  based
digital   amplifier  specialist,  has  proved  to  be   very
successful   with   results   in   the   period    exceeding
expectations.   Lab  Gruppen will make a  significant  first
year profit contribution.

As  a result of the softness in sales the Board expects that
operating profit from continuing operations and acquisitions
for  the  year  ended 31 March 2001 will  be  around  #2.0m.
After  taking into account the impact of the #1.85m goodwill
charge  arising on the disposal of Audix (which is discussed
in  more detail below), the Group expects profit before  tax
for  the  year ended 31 March 2001 to be around  break-even.
This  charge  for  goodwill  is  a  non-cash  item  and  has
previously been charged against Group reserves.

The  Board  intends  to  maintain the  level  of  the  final
dividend at 2.6p.


Disposal of Audix

TGI  announces  the  sale of Tannoy  Audix  Systems  Limited
("Audix") to Tyco Electronic Product Group, part of the Tyco
International  Limited Group ("Tyco") for an aggregate  cash
consideration of #900,000.

Audix  designs,  supplies and commissions industrial  public
address  systems and the Board believes the business  is  no
longer  central  to  TGI's  strategy  of  focussing  on  its
international branded Professional and Hi-Fi businesses.

Consideration  for  the  sale  was  #1,  together  with  the
repayment  of  inter-company debt  of  #899,999.   The  cash
proceeds  of the sale, totalling #900,000, will be  used  to
reduce the Group's borrowings.

For the year ended 31 March 2000 Audix reported turnover  of
#2.4m, a loss before taxation of #111,000 and had net assets
(excluding  bank  borrowings  and  inter-company  debt)   of
#732,000 at that date.

TGI  is  not  selling any of the rights to the Tannoy  brand
name  as  part of the transaction and Tyco will be  changing
the name of the Audix business.


Enquiries

TGI plc                                       023 9249 2555
Nigel Hamilton, Chief Executive
Peter Russell, Finance Director

Square Mile BSMG Worldwide                    020 7601 1000
Kevin Smith