Trading Statement

Walker Greenbank PLC 9 February 2000 WALKER GREENBANK PLC Trading Statement The creation of the Walker Greenbank Group in the early 1990's resulted in it having a large number of incompatible IT systems. To address this problem and to provide a platform for e-commerce, as well as dealing with the Y2K risk, we have been working for over three years on an integrated systems strategy for the whole Group. Installation of this system was completed in December 1999. Whilst much of the new system has been implemented successfully, certain software problems at the Group's centralised warehouse in Milton Keynes have prevented it from operating at previous efficiency levels in the run up to the year end. This has had an impact on our ability to process the orders we have received, reducing our sales levels in the final period of the current financial year. Our staff are working closely with the software house which supplied and installed the package to resolve these difficulties. Considerable progress has been made and we anticipate that the new system will be working efficiently shortly. The Board has already agreed an approach with the supplier to substantially mitigate the financial impact of these implementation problems. The full year's results will contain an exceptional receipt relating to this matter. Taking this into account, profitability for the second half of the financial year ended 31 January 2000 will fall slightly below the Board's expectations as a result of the overall adverse impact of these events. Aidan Connolly, Chief Executive, commented: 'Despite all our best efforts, project overruns made it necessary to install this software in a critical period for our business. It was a disappointment that the installation did not go totally smoothly. However, our software partner has responded magnificently to the problems and as a result we are already moving back on track and forging ahead with implementing the next phase of our e- commerce strategy.' Walker Greenbank will announce its preliminary results for the year ended 31 January 2000 on 18th April 2000. Enquiries: Aidan Connolly, Chief Executive John Sach, Group Finance Director Walker Greenbank plc 0144 223 4666 John Rudofsky/Patrick Toyne- Sewell Citigate Dewe Rogerson 0207 638 9571
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