AGM Statement

    RNS Number : 8510H
  Walker (Thomas) PLC
  11 November 2008
   

    Date: Tuesday 11 November 2008
    Embargoed: 7.00am
    Thomas Walker plc
    ("Thomas Walker" or "the Company")

    Annual General Meeting Statement

    The following statement will be read by the Chairman at the Annual General Meeting of the Company being held later today.

    "As I indicated in the Preliminary Results announcement in October 2008, trading conditions are challenging and seem likely to remain so
for some time.

    Shareholders are already aware that Thomas Walker's main business is conducted in the United Kingdom, nevertheless a substantial element
of the Company's sales are dependent on overseas trading. In addition, all raw materials are imported directly or indirectly. This is
significant since it implies that the Company's operations will continue to be influenced by the substantial exchange movements, which have
taken place since June 2008. For us the greatest impact has come from the realignment between Sterling and the American and Hong Kong
Dollars.

    Furthermore the "Credit Crunch" has depressed demand in both industrial components and garment manufacturing as customers de-stock or
reduce their activity.

    Market forces have influenced the two divisions of the Company in different ways, but overall the reduction in revenue in the three
months to 30 September 2008 has been held to 12% below the corresponding three months in 2007. Trading results for these three months -
traditionally a quieter period incorporating holiday seasons - have been roughly break even. 

    T W Stamping

    Sales are some 28% below the 2007 level. Demand for electrical and plumbing accessories as well as engineering components has declined
sharply as many customers contract and others consolidate their reducing operations into overseas subsidiaries, where they seek economies of
scale and where costs are lower.

    Whilst some established customers are moving overseas, others are looking in the opposite direction. There is, for example, greater
optimism for the future as a number of potential customers, who have previously sourced large volumes from China, India and other Asian
countries are indicating that they require much reduced quantities and prompter delivery. This suits TW Stamping's profile admirably and is
presenting real opportunities to secure new and additional business.

    Other customers, who have traditionally machined basic stampings sourced from our factory, are now interested in TW Stamping taking over
this finishing work as well. Several major projects are being developed, but the inevitably long lead times will delay their realisation
until early 2009.

    The effects of the highly volatile brass market have been well contained by a new and vigilant management who have enforced disciplines
and procedures within the division.

    The strengthening of the sales and marketing department is already yielding benefits and, as one direct consequence, an investment in
state-of-the-art machinery is planned to enhance the volume and quality of the precision engineering which can be offered. A separate
announcement will be made once the details have been finalised.

    Thomas Walker (UK) and Thomas Walker (SEA)

    A firm focus on developing new business has resulted in the original Thomas Walker operations reporting a 2% increase in turnover during
the first quarter. This, together with an encouraging increase in Identity Products, has more than compensated for a sharp decline in the
traditional trouser fastenings ("Non Crush") market. This is a direct result of reduced garment sales.
    We are studying the effects of recent exchange rate movements to establish if they can offer opportunities to re-enter some overseas
markets, which were lost when sterling rose to around the 2 dollar level.

    Cost increases from China, resulting from inflation and new employment and environmental regulation are being recouped, but
supplementary price increases, originating from exchange rate movements, particularly the strengthening of the dollar, will have to be
addressed in the near future. 

    To summarise, Thomas Walker is currently experiencing financial and commercial pressures, chiefly from raw material volatility, exchange
rate movements and the credit crunch, but the Board is confident that the fundamentals of the Company remain sound and that planned
developments will significantly strengthen the business in the medium term. The second quarter of the current financial year will be a
period of consolidation and development for the future. Thereafter, the remainder of the current financial year will remain difficult but
manageable."



 Enquiries:                                                                   
 Bill Good, Group Managing Director                                           
 John Lomer, Group Finance Director  Colin Smith         Katie Dale
 Thomas Walker plc                   Arden Partners plc  Golley Slater
 Mobile: [phone] (BG)           Tel: [phone]  Tel: [phone]
 Mobile: [phone] (JL)                              Mobile: [phone]


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The company news service from the London Stock Exchange
 
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