Birse Group PLC - Disposal, etc

RNS Number:8533J
Birse Group PLC
2 May 2000


                                                                             
                  Birse Group PLC ("Birse" or the "Company")
                                       
     Sale of Site Services and Non Operated Divisions (the "Divisions") of
                         BPH Equipment Limited ("BPH")
                                       
                                       
The Board of Birse announces the sale on 28 April 2000 of the Divisions to
Ashtead Plant Hire Company Limited ("Ashtead"), a subsidiary of Ashtead Group
plc, for a consideration of #1.65million in cash (subject to a completion
stocktake).

The Divisions are engaged in the hiring of general plant, principally to the
construction and industrial sectors. The assets sold include, inter alia, the
hire fleet, trading contracts, motor vehicles, customer lists and goodwill.

In addition, Birse Construction Limited has entered into sole supplier
arrangements with Ashtead for general plant for a period of three years.

The assets sold had a net book value of #1.65million as at completion. The
Divisions generated an operating profit of #10,000, before any allocation of
central overheads, on turnover of #2million in the year ended 30th April 1999.

The proceeds from the sale will in large part be reinvested in expanding BPH's
crawler crane and piling hammer fleets.

The sale of the Divisions is a continuation of Birse's strategy of disposing
of those assets that are either non-core or are not earning an acceptable
return.




Enquiries:

Birse Group plc                                01652 633222
Peter Watson, Chief Executive
Martin Budden, Finance Director

Financial Dynamics                             020 7831 3113
Tom Baldock


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