Trading Statement

Lupus Capital PLC
29 February 2008





Lupus is able to report that it foresees a satisfactory set of results for the
year ended 31 December 2007 that will be in line with analysts' expectations.
The integration of Laird Security Services ('LSS'), acquired on 27 April 2007,
has proceeded well.



With many benefits coming from operating improvements, LSS synergies with
Schlegel Building Products ('Schlegel') and our non-US activities including Gall
Thomson, we should achieve good financial performance despite the US building
products end markets, in which LSS and Schlegel are active, deteriorating
throughout 2007.



The eight month contribution from LSS, although incurring a number of
exceptional cost items, has been significant both in profit and as a result of
many changes and synergies achieved.  The reporting structures of both Schlegel
and LSS have been altered dramatically with the Schlegel US business now
integrated into LSS US and the LSS UK companies absorbed under the Schlegel
European management team.  The LSS loss making conservatory subsidiary was sold
on 27 July 2007; several US facilities were closed; purchasing power has
increased; cost savings have been made; cross selling opportunities grasped and
shared product development enhanced.  New financial disciplines in LSS UK have
generated significant cash out of working capital and a greater understanding of
financial performance and opportunity.



Gall Thomson Environmental, which manufactures products primarily for the oil
and gas sector, has had another record performance beating previous years in
sales, profits and cash generation. At the year end order books were strong both
in marine and industrial breakaway couplings.



All our businesses have generated good cash flow during 2007 enabling us to keep
our debt taken on for acquisitions under control.



The general economic climate for 2008 is uncertain.  The oil and gas sector
remains buoyant.  The US housing environment is at a low ebb and the European
building components market has become varied between countries.  These business
conditions require continuous examination and control of our cost base.



Nevertheless, with the continuing opportunities of our LSS acquisition, our
capable management teams and vigorous financial disciplines, we anticipate
another year of growth and development at Lupus Capital during 2008.




Enquiries to:               Greg Hutchings                 020 7976 8000
                            Lupus Capital
                            Alan Frame                     020 7405 7777
                            Westport Communications Ltd.   07850 944 187



29 February 2008


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