Trading Statement

RNS Number:1968S
Tibbett & Britten Group PLC
18 November 2003

                                                                18 November 2003



Tibbett & Britten Group PLC

Trading Update





Tibbett & Britten Group PLC is issuing the following trading update in light of
events within its Americas Division.



Americas:  Although certain contracts have been delayed, the underlying levels
of interest in outsourcing remain high. Our major North American contracts are
performing well in an improving economic environment and we have a robust
pipeline of new business for 2004.



In Mexico, Dimalsa has achieved strong new business growth, including the
commencement of new contracts with Procter & Gamble and Rubbermaid. However,
there will be substantial additional costs in the second half arising from the
closure of eight warehouses with their consolidation into a single Macrocenter
in Mexico City. This ambitious project was not initially implemented to plan and
the subsequent recovery programme incurred significant cost overruns. In
addition, the timetable for implementation of a new freight management system
has been extended and the benefits deferred.



The transition is now complete with target service levels now being achieved and
the on-going cost base of this business being significantly reduced.



A complete review of the business' processes and operations has also been
completed and the necessary management changes made within Dimalsa.



Europe:  The Division continues to make good progress with performance ahead of
expectations. This is being driven by the closer integration of our pan European
operations, the realisation of the benefits from last year's restructuring and
the continuing revival in UK outsourcing activity. Our Mainland European
operations are making progress despite the challenging economic environment. In
recent months, we have commenced operations for Castorama, Scholl, Levis,
Johnson & Johnson and secured new contracts from Carrefour, Coca-Cola, Metro and
Tesco.



International:  The Division continues to make excellent progress with, in
particular, our Chinese joint venture and South Africa performing well. It is
anticipated that the Division will more than double its contribution in the
current financial year.



The net impact of the above factors on the full year is likely to reduce the
2003 pre-tax profit outturn by approximately #5.0 million.



Commenting John Harvey, Chairman, said: "Difficulties in Mexico have obscured
good progress across the rest of the business. In particular, our European and
International businesses are trading ahead of our expectations. We are confident
that these Mexico issues have now been resolved and that the Group is well
placed to meet its objectives for 2004.







Enquiries:


Tibbett & Britten                                    020 8327 2000

Mike Arrowsmith, Chief Executive

Mark Whiteling, Finance Director


Hudson Sandler                                       020 7796 4133

Andrew Hayes/Jessica Rouleau




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