Trading Statement

LUPUS CAPITAL PLC
                          TRADING STATEMENT
                 Update for 6 months to 30 June 2008


As stated  at  our  AGM  on  2  July  the  start  of  2008  has  been
challenging.   US housing has continued  its declining trend and  the
overall  European   building   products  market   showed   signs   of
deterioration.   However, Gall Thomson, our oil services business, is
thriving.

With the inclusion  of the  Laird businesses  for 6  months in  2008,
group sales  and profits  will be  considerably higher  than for  the
first  half  of  2007.    However,  like  for  like  group  sales  in
comparison to the similar 2007 period are around 5% down.

Costs have been aggressively  attacked.   Employee numbers have  been
reduced by  over  10%  affecting  office  staff  and  the  production
workforce; in  addition  temporary  labour  has  been  flexed.    Raw
material input prices, particularly steel and polypropylene, as  well
as freight, have increased dramatically  and we have been  successful
in passing  some of  these on.    A number  of facilities  have  been
closed, with further manufacturing relocated  to China and a new  low
cost factory in Mexico has been  built to deal with work  transferred
from higher cost USA plants.

Continuing inventory and working capital controls have enabled us  to
generate cash  despite the  seasonal increase  in business  activity.
Rigorous examination of capital  expenditure has limited  unnecessary
cash outflows.   After some major first half expenditure including an
£8.5m debt repayment, a  £5.6m share buyback, as  well as the  £12.5m
interest free deferred acquisition  cost due to  Laird, our net  debt
position as at 30 June 2008 stood at £112.4m.

The last six months of the year are undoubtedly going to be difficult
and uncertain.   Sales and  order books  appear to  be changing  from
historically  relatively   predicable  patterns   to  more   volatile
fluctuations.   Raw  materials  prices need  constant  attention  and
costs have to be  reduced. Our share price  regrettably has been  hit
hard by both the general stockmarket malaise and sentiment  regarding
the housing industry.   However, we  are confident that once  markets
improve we will emerge stronger and more profitable.


29 July 2008

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