Trading Update

RNS Number:2618O
Polymer Logistics N.V.
19 February 2008

19 February 2008


                             Polymer Logistics N.V.

                     ("Polymer Logistics" or "the Company")

                               Trading Statement


The Company announces that it expects results for the year ended 31 December
2007, which, whilst a significant improvement upon those achieved in 2006, will
be below current market expectations.

Revenues for 2007 are expected to be approximately Euro37 million and profits after
tax are expected to be not less than Euro4 million. Whilst this represents sales
growth of 64% over the prior year, reported post tax profits for the period are,
regrettably, significantly below our original expectations.

The slight shortfall in expected revenue is largely attributable to a Euro2m
delayed order which has now commenced in 2008.

Profits were negatively affected by the following factors:

  * The Company is contractually entitled to receive circa Euro2 million from a
    customer which is currently under dispute. Whilst the Board is of the firm
    view that the Company is entitled to recover the entire amount to which it
    is contractually entitled, the Board had decided that it would be prudent to
    adopt a conservative approach and to include an estimated recovery of Euro0.6
    million in its 2007 numbers. This will therefore result in a Euro1.4 million
    shortfall to reported post tax profits for 2007. Shareholders will be
    updated when a final position on this matter has been reached.

  * A sharp increase in raw material prices (principally polypropylene) in the
    second half of the financial year resulted in a circa Euro1 million reduction
    in profitability. Margins on product sales declined as we were unable to
    pass-through the complete increase in raw material costs to our clients in a
    number of short-term contracts. However, the impact on pool margins was
    marginal as most of our income and costs are related to already in-use pool
    equipment while new business already took into account the cost increases.
    Management have acted to reduce exposure to future raw material price
    fluctuations by ensuring that new sales contracts include raw material price
    escalators;

  * The Company also suffered a delay in its bulk bin project due to one of
    its mould makers going into receivership.  This caused a three month delay
    in mould supply, resulting in an estimated Euro0.75 million hit to the profit
    and loss account;

  * Exchange rate movements, particularly that of the decline of Sterling
    versus the Euro experienced in the last quarter of 2007, negatively affected
    profits by approximately Euro0.7 million; and

  * A strike late last year by truck drivers in Italy resulted in circa Euro0.5
    million of lost revenues and Euro0.25 million of lost profit.

However, 2007 was also a year of significant achievement. During the period,
Polymer Logistics managed to successfully execute its strategy of expanding its
customer base both by entering into business relationships with new customers in
new territories and by providing additional services and selling new products to
existing customers. In the year, revenues from the core UK business, which
supplies leading retailers such as Tesco, Asda, and Sainsbury, grew by 70% on
those generated in 2006.

The Group also launched two major activities in new territories in 2007. The
first of these was in Italy in relation to our contracts with Carrefour &
Ortofin, which represented 30% of Group revenues in 2007 from an almost standing
start. Secondly in the USA we commenced work with Fresh & Easy and with HEB
which is expected to make a significant contribution to Group sales in 2008.
Additionally, the Group signed two new contracts in Germany with a leading
German retailer with revenue potential for over Euro4 million in 2008 and a
contract with Israel's leading retailer with revenue potential for Euro1 million
per annum in the coming few years.

The current order book for 2008 is strong at approximately Euro54 million and the
Board is confident of achieving sales growth in the current financial year at a
similar rate to that achieved in 2007.

The Company expects to announce its results for the year ended 31 December 2007
by the end of March 2008.



Enquiries:

Polymer Logistics N.V.                                   [phone]
Gideon Feiner, Chief Executive Officer
Dana Gerner, Chief Financial Officer

Financial Dynamics                                       [phone]
Harriet Keen / Matt Dixon

Collins Stewart Europe Ltd                               [phone]
Mark Connelly / Oliver Quarmby



Notes to Editors:

Polymer Logistics is a provider of sustainable 'one-touch' logistics solutions
to leading retailers and suppliers in the UK, Continental Europe and the US.

Polymer Logistics' Retail Ready Packaging (RRP) is designed to be 'display
ready' from factory to the point of sale. Consumers purchase directly from RRP
units in-store, with no requirement for retailers to unpack goods from the RRP
units onto the shelves.  The units are reusable, thereby reducing the
environmental impact due to the volume of waste created by disposable 'one-way'
packaging made out of timber or cardboard. In addition, Polymer Logistics' RRP
units are stackable and foldable and are designed to maximise the capacity of
delivery vehicles which reduces the number of trips required to be taken in the
logistics loop.

Polymer Logistics is based in The Netherlands with subsidiaries in the UK,
Israel and the US and branch offices in Spain and Italy.  Its principal
customers are located in the United Kingdom and Continental Europe.  The Group
has ongoing relationships with a number of blue chip retailers including Tesco,
Asda, and Sainsbury, as well as blue chip FMCG suppliers including Coca Cola
Enterprises Limited, Danone Waters, Britvic Soft Drinks and Arla Food.

Polymer Logistics listed on the AIM market of the London Stock Exchange in
December 2006 and its ticker symbol is POLL.  For further information please
visit the company website, www.polymerlogistics.com.



                                     -Ends-


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