AGM Statement

    RNS Number : 7543D
  Airsprung Furniture Group PLC
  18 September 2008
   

    AIRSPRUNG FURNITURE GROUP PLC
    ANNUAL GENERAL MEETING, 18 SEPTEMBER 2008

    The Chairman will make the following trading statement at the Annual General Meeting to be held today, Thursday 18 September at
12.30pm:

    In the Annual Report, I noted the rapid increases in raw material and fuel prices, combined with weakness in the housing market and low
retail activity, and how they were affecting our trading prospects.    The change in the trading environment has been extremely sudden, and
revenues for the first five months to the end of August have been substantially down on last year. After two years of satisfactory results
it is inevitable that the first six months of the current year will show a trading loss.  Management has been taking vigorous action to
reduce costs and increase prices, and the benefits of this are now working their way into the profit and loss account.  The month of August
showed a welcome improvement in the performance trend, with a recovery of gross margins which we expect to continue over the next months, as
input prices become more stable.

    A number of initiatives are under way to improve the group's performance, including contract business from the hotel sector, an overseas
licensing programme, and new purchasing, merchandise and sales developments.   The recent difficulties in the banking and financial services
sector suggest that the UK consumer economy will be extremely fragile for many months to come. Nevertheless, our management teams are
confident in the steps they have taken to date, and I expect to be able to give a more optimistic forecast when we announce our interim
results later this year.

    Stuart Lyons CBE
    18 September 2008


    For further information, please contact:

 Tony Lisanti, Chief Executive of Airsprung Furniture Group PLC  01225 754 411

 Mike Coe, Blue Oar Securities Plc                               0117 933 0020


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