Trading Statement

4Less Group plc (The)
19 April 2005

The 4Less Group Plc ('The Company')

Trading statement

19 April 2005


As advised in the trading statement and interim results issued by the Company in
December 2004, the Company has undertaken successfully a full review of its
activities, future strategy and ongoing cost structure.


The Company has focussed on its core competencies of Retail and Corporate
foreign currency exchange, and arranging overseas mortgages, to ensure a solid
foundation from which the Company can develop its profitability.


Management changes


Charles McLeod has assumed the role of non-executive director.


Activity changes


The activities of FLG Corporate Services and the corporate element of FLG
Insurance Brokers have failed to generate expected levels of revenue and
profitability and these divisions have been suspended. The Company continues to
provide insurance products to overseas home owners.


www.Car-Finance4Less.com Limited, the subsidiary providing car finance broking
services has failed to make any returns for the company and has been sold to
Charles McLeod for a nominal sum.


The Company has also streamlined its UK trading floor operations and its Spanish
based activities in Marbella.


These actions and the cessation of non-core activities have resulted in
significant cost reductions for the Company.  After a difficult period
management is now in a position to give its full attention to the continuing
profitability of the core currencies and overseas property mortgage businesses.


Current trading


Trading during the first three months of 2005 was difficult throughout the
Company's markets.  Despite this, the core activities have continued to generate
significant gross profits.  The effect of the reorganisation and reduction in
cost base is that the Company is now able to trade profitably at lower levels of
activity.


As part of the review, the Company has introduced new accounting and internal
controls including back office and compliance systems, and this will remain a
key area of focus for management.


The Company has also substantially completed three major marketing initiatives
with the assistance of external consultants to re-examine its methods of
developing its profile in the marketplace.


Outlook


The directors still anticipate that the Company will make a trading loss for the
full year in line with its interim statement, before the costs associated with
the reorganisation.  The directors estimate that the reorganisation costs which
include the exceptional costs of redundancies are approximately £190,000.
Following this reorganisation, the Company is a simpler and more focussed
financial services business.


Results


It is anticipated that the results for the year ended 31 March 2005 will be
released in July.


Further information:


Nigel Paul - Chief Executive Officer, The 4Less Group Plc
Tel: [phone]


Olly Cairns - Corporate Synergy Plc
Tel: [phone]






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