Disposal Completed, etc

Allen PLC
14 August 2000

                      
                  ALLEN PLC
(Hire Services, Utility Services, Building Contracting)

DISPOSAL OF HOUSEBUILDING DIVISION TO MORRIS GROUP LIMITED

Key highlights

    Exit from housebuilding

    Net cash consideration of £23.8 million

    Focus on increasing rate of expansion of
    Hire and Utility Services businesses

    Commitment to maintaining efficient capital structure


The Disposal

Allen  Plc ('Allen' or the 'Company') announces that  it  has
completed  the  sale  of  its  Housebuilding  Division   (the
'Disposal') to Morris Group Limited ('Morris'), a North  West
based   private   housebuilding   company,   for   net   cash
consideration  of  £23.8  million.   The  Disposal  concludes
Allen's exit from housebuilding which commenced with the sale
on 20 December 1999 of housebuilding land at Lymm, Cheshire.

The  consideration for the Disposal is payable £13.3  million
immediately  on  completion, £5.5  million  12  months  after
completion and £5.0 million 24 months after completion.   The
funds  received  will  be used to reduce  the  Allen  Group's
borrowings  in the short term.  The consideration is  subject
to  a  minimum  level  of  net assets for  the  Housebuilding
Division at completion.

The £10.5 million deferred consideration has been secured  by
way  of  a  mortgage debenture in favour of  Allen  over  the
assets  of  the  enlarged Morris Group.  This debenture  will
rank after security granted to Morris' bankers.  £2.5 million
of  the deferred consideration has been guaranteed by Bank of
Scotland plc and the remaining £8.0 million has been  insured
by  Allen against any act of insolvency by Morris Group.  The
cost  to  Allen of the bank guarantee and insurance  is  £0.3
million.



Information on the Housebuilding Division

The    Housebuilding   Division   represents    the    entire
housebuilding  activities of the Allen Group, which  operates
in  the Midlands and the North of England.  In the year ended
2  April  2000  it  sold 523 properties  and  the  aggregated
turnover and operating profit before exceptional items of the
Housebuilding  Division were £41.9 million and  £4.2  million
respectively.  In that year, the Housebuilding Division  also
realised  an  exceptional  pre-tax  profit  of  £7.0  million
relating to the sale of housebuilding land at Lymm, Cheshire.

The  Allen  Group has retained development land at  Silkstone
Common,  Barnsley.  The Board is currently in discussions  to
sell  this  land at above its £1.2 million book  value.   The
Allen Group has also retained an interest in the future value
of a ransom strip of land at Burbage, Leicestershire.

The aggregated net assets of the Housebuilding Division as at
2  April  2000 were £24.6 million.  Morris will  assume  bank
debt   of   approximately  £4.5  million  relating   to   the
Housebuilding Division.


Background to, reasons for and benefits of the Disposal

In  its announcement on 26 June 2000 the Board stated that it
had  been  reviewing the Group's strategy and had decided  to
focus  on  the Group's core activities to enhance shareholder
value.   As  part of this new strategy the Board  stated  its
intention to exit from housebuilding.

After detailed consideration of the options for the exit from
housebuilding,  the  Board has concluded  that  the  Disposal
announced today represents the best price achievable  and  is
in the best interests of the shareholders as a whole.

The reasons for and benefits of the Disposal are:

       it will allow the Group to direct
  greater     funds     to    the    Hire     and     Utility
  Services      businesses,     which     provide      higher
  returns    on    capital    and    greater    opportunities
  for    profitable    growth    than    the    Housebuilding
  Division;

       it    will    enable   management   to    focus    on
  the Hire and Utility Services businesses;

         the     prospects     for     the     Housebuilding
  Division    as   a   small   regional   housebuilder    are
  limited as part of the Allen Group; and

       it    provides    a   clean   and   immediate    exit
  from    housebuilding    and    avoids    the    commercial
  pressures    associated    with    building     out     the
  existing landbank over a period of time.

The  Directors  believe there are considerable  opportunities
for growth in its Hire and Utility Services businesses.

Hire  Services - The Hire Services division ('Speedy')  is  a
leading   national  tool  hire  and  portable   accommodation
business.   It  accounted for 63 per  cent.  of  the  Group's
operating profit in the last financial year.

Increasing   Speedy's  geographical  presence  will   further
improve  its  ability to offer an efficient national  service
and to benefit from the trend towards an increasing number of
preferred  supplier agreements in the construction  industry.
The Disposal will enable the Board to focus further resources
on  Speedy  and to expand this business more rapidly  through
increasing the rate of new branch openings and the  continued
development of niche areas of the hire services sector.    It
is  intended that the increased rate of branch openings  will
be  achieved  through development of greenfield sites  and/or
acquisitions.

Utility  Services - Ryan has grown in recent  years  and  the
Board believes there are considerable opportunities available
to  it.   These opportunities will arise as utility providers
continue to outsource the management, maintenance and service
of  their infrastructure assets.  Additionally, the Directors
believe  that  regulatory pressure is  likely  to  result  in
increased  expenditure  by utility  providers.   The  Utility
Services  division's track record of success  and  innovation
means  that  it is well placed to benefit from these  trends.
To  exploit these opportunities fully, the Board announced on
3  August 2000 the appointment of Michael Rowan with a  remit
to  develop  this  division both organically  and/or  through
acquisition.   Michael Rowan joins the division from  Balfour
Beatty  where  he  gained  considerable  experience  in   the
utilities sector.

The  Board is committed to an efficient capital structure for
Allen.   In  the  event that it is unable  to  re-invest  the
proceeds  of the Disposal it will return surplus  capital  to
shareholders.  In this respect, increased authority  (from  5
per  cent.  to  14.99  per cent. of  the  share  capital)  in
relation  to share buy-backs was approved at the  AGM  on  26
July 2000.

Don Greenhalgh, the Chairman of Allen commented:

'The  disposal of Allen's housebuilding division is  a  major
step  in  our  strategy to focus on the  Group's  key  growth
businesses.  The proceeds of the disposal will enable  us  to
invest   further  in  these  growth  businesses  to   enhance
shareholder value.'


For further information contact:
Allen Plc
Ken Fox                                 01204 699 277
Neil O'Brien
Binns & Co Public Relations
Brian Coleman-Smith                     020 7786 9600
Simon Ellis
N M Rothschild & Sons
Paul Simpson                            0161 827 3800
Andrew Simpson
Credit Suisse First Boston
Chris Lloyd                             020 7888 8888
Alastair Cochran