Update on proposed issue

RNS Number:0646Q
Miller Fisher Group PLC
16 January 2002



For immediate release                                          16 January 2002


                           Miller Fisher Group plc

     Update on proposed issue of preference capital and historic trading


As previously announced on 6 December 2001, Miller Fisher Group plc ("Miller
Fisher" or the "Group"), the provider of outsourcing services to the insurance
and financial services industries, has agreed in principle to issue 13.25
million cumulative redeemable convertible preference shares to the Bank of
Scotland at a price of #1 each, in order to reduce bank indebtedness. Details
of the proposed issue and other related matters are now being finalised and
the Group expects to distribute a circular to shareholders seeking shareholder
approval for the proposals in the near future.


Following the year end and on the basis of unaudited management information,
the company is now in a position to comment on the estimated outturn for 2001.


As stated in the announcement on 6 December 2001, trading conditions continued
to be difficult in the second half of 2001. Revenues in the UK, in both loss
adjusting and third party administration, were substantially lower in the six
months ended 31 December 2001 than in the first half of 2001. As a
consequence, the Board expects the Group to report an operating loss before
interest for the year ended 31 December 2001. The Board will not be declaring
a dividend for the year ended 31 December 2001.


In addition, in the second half of 2001 the Group incurred exceptional
non-recurring expenses in respect of the proposed issue and through further
restructuring of its UK operations. These costs will be greater than those
reported in the first half. The restructuring was carried out to reduce the
cost base of the Group in order to return to operating profitability.
Financing costs and interest are likely to be at a similar level to those
incurred in the first half.


As required by FRS 10, the Board will be considering whether there is a
permanent impairment to the carrying value of goodwill and tangible fixed
assets. It is not possible at this stage to estimate whether any impairment
will be identified by this review. If there is any impairment, any resultant
writedown of goodwill and tangible fixed assets would not impact on cash flow
although it may further reduce the reported results for the year ended 31
December 2001.



The Board believes that the proposed issue referred to above and related
measures to be set out in the circular to shareholders will provide the Group
with a stronger platform to maximise the opportunities available in its market
and will enable it to pursue successfully its future development.

For further information, contact:

Miller Fisher Group plc                                           020 7398 8700
Malcolm Hughes
Richard Horton

Grandfield                                                        020 7417 4170
Clare Abbot
Olly Scott


The announcement has been issued by the Group and is the sole responsibility
of the Group. HSBC Investment Bank plc has approved this document for purposes
of the Financial Services and Markets Act 2000 (in accordance with
transitional rules).


This announcement has been prepared for information purposes only and is not
to be relied upon in substitution for the exercise of independent judgement.
It is not intended as investment advice, and under no circumstances is it to
be used or considered as an offer to sell, or a solicitation of an offer to
purchase, any securities nor a recommendation to enter into any transaction;
nor shall it or any part of it form the basis of or be relied on in connection
with any contract or commitment whatsoever.