Trading Statement

RNS Number:6536U
UCM Group PLC
27 January 2004


27 January 2004

                                 UCM Group PLC

                                 Trading Update

UCM Group PLC ("UCM"), the leading provider of speciality-fused minerals,
reports that the anticipated modest recovery in sales, particularly in the
fourth quarter, has not occurred, albeit there was a noticeable improvement in
sales from its Chinese venture.

Manufacturing difficulties experienced in the first half year have been overcome
in its US magnesia plant, whilst commissioning of the new zirconia furnace, also
in the US, has proved more problematical than anticipated. Nevertheless the
transfer of zirconia production was successfully achieved in the fourth quarter,
resulting in the cessation of manufacture of zirconia at Stafford and a
reduction in fixed costs in the UK.

As a result, the Board expects that, when the accounts are finalised, profits
for the year to 31 December 2003 will be in the region of #1.6m pre-exceptional
items and tax. Full year results will be published on 1 April 2004.

John Gordon, UCM's Chairman said: "Market activity in the closing months of the
year has held us back, together with production problems in Tennessee, which are
close to resolution. The outlook for the coming year, however, remains
encouraging with the reorganisation programme complete, plants are now product
specific ensuring a more cost effective base to service our markets."

                                    - Ends -

Enquiries:

UCM Group PLC                                                     01785 223122
Bob Hughes, Chief Executive
Melvyn Fookes, Group Finance Director

Weber Shandwick Square Mile                                      020 7067 0700
Terry Garrett or Alex White or Rachel Taylor




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

END
TSTBFMRTMMJTBBI