Save Group PLC
10 January 2001
SAVE GROUP PLC
Response to newspaper comment
The Board of Save Group PLC ('Save' or the 'Company') has noted the article in
the Daily Mail today concerning an environmental consultancy report and
possible costs to Save of rectifying leaks from underground fuel tanks.
The Board is not aware of any such report or of any current fuel leaks on any
of its sites or of significant historic problems arising from leaks. The
Company's routine stock control procedures would identify any leaks on a
timely basis and remedial action would be taken in accordance with guidelines
published by LACOTS, an association of local authorities' trading standards
departments, and other regulatory authorities.
On 12 July 2000, the Board announced that it was having discussions, which
might or might not lead to an offer for the whole of the Company's issued
share capital. The Board continues discussions with more than one party. The
substantial disruption to margins and sales volumes during the second half of
2000 from the fuel crisis, the weather and political interference in petrol
pricing temporarily distracted the attention of these parties from Save's
underlying strengths. Supplies are now, however, readily available again
following the fuel crisis and subsequent weather problems and sales volumes
with continuing competitive pricing are again making progress year on year.
Margins, which became negative in September and October 2000, recovered with a
price rise in November and subsequent product price reductions to a level at
which pump prices once again began to be reduced. Some recent pump price
reductions and product price rises are reducing margins, in some areas, to
unsustainable levels. The first two weeks of 2001 have, however, traded ahead
of the equivalent weeks in 2000.
A further announcement will be made as soon as appropriate.
10 January 2001