Trading Statement

RNS Number:2024U
Matalan PLC
14 January 2004

Embargoed for Release until 7.00am 14th January 2004

                                  MATALAN PLC

                               TRADING STATEMENT

As stated at the time of the trading statement on 10th December 2003, the
remaining Christmas trading period and end of season sale activity was critical
in determining the outcome for the year. Matalan has continued to experience
difficult trading conditions in the intervening period, and began discounting
before Christmas. Trading has been:-

   *Total sales for the 5 week period to 10th January 2004 were up 5.5%
    (2003: 15.6%) and like for like down 5.0% (2003: up 1.0%).

   *Cumulative sales for the 19 week period were up 3.3% (2003: 15.4%) and
    like for like down 6.4% (2003: up 1.6%).

   *Gross margins in the 19 week period were down 1.7% year on year.

   *Despite an earlier and heavier level of markdown than last year, sell
    through of terminal stocks has been disappointing and additional clearance
    activity in the balance of year will therefore be undertaken.

Matalan now estimates that Group profit before taxation for the full year to
28th February 2004 will be in the range of #60m to #70m. The final outcome is
clearly dependent on the level of activity needed to clear terminal stock in the
balance of year.

John King, Group Chief Executive, said: "This has been a disappointing Christmas
for Matalan, and the tough trading conditions experienced in the run up to
Christmas resulted in greater discounting than planned. The management team
believe the actions needed to correct the stock position are being
taken."

Contact:

MATALAN                                           01695 552400

John King, Group Chief Executive
Phil Dutton, Group Finance Director

TULCHAN COMMUNICATIONS                            020 7353 4200

Kirstie Hamilton
Celia Gordon Shute

                                                               www.matalan.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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