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Toad Group PLC (TGP)

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Monday 27 September, 2004

Toad Group PLC

Trading Statement

Toad Group PLC
27 September 2004


                             Toad Group plc ('Toad')

The Board of Toad report that sales in August have been lower than expectations

The Board of Toad report that sales in August in the company's car audio
insurance replacement business and motorcycle security and accessories business
were lower than expectations and that although sales in September are showing
signs of recovery, their expectations for the outcome for the year are below
current market expectations.

The car audio insurance replacement business is acknowledged as a mature market
as an increasing number of vehicles are fitted with integral audio systems and
improved security.
To compensate for the anticipated decline we launched a new camera and computer
insurance replacement division ('C&C') in 2002, pioneered a new vehicle
inspection service ('VIS') to the insurance underwriters and expanded our
installation operation into the mobile phone hands-free installation market. The
hands-free installation service has been particularly successful, C&C is making
steady progress and we are encouraged by the number of insurers trialing the
vehicle inspection service. While August saw a far greater than expected drop in
the number of car audio claims being processed we remain the leading supplier in
this sector to the major insurers.

This accelerated decline of the audio replacement market has coincided with a
fall in registrations of new motorcycles and scooters which are down 30% when
compared to last year. This has a direct impact on our core bike alarm sales. To
counter this we have expanded our product range to reduce dependency on new
motorcycle registrations and expect to launch the revolutionary rear-view
motorcycle helmet, 'Reevu', at the NEC later this year.

Chairman, Peter Ward said:

'While the results for August are undoubtedly disappointing, the main shortfall
is in an area in which we had expected decline, albeit at a slower rate. We have
spent the last two years moving the business into new growth areas and expanding
the motorcycle accessories operation so that it is less affected by fluctuations
in new bike registrations. It will take time to develop our new initiatives
fully but I am very encouraged by the progress being made.

Our unaudited interim results to 30 June showed an operating profit of £1.1m
(2003: £1.0m) on sales of £18.1m (2003: 17.0m) and our unaudited management
accounts record a profit in both July and August. Cash flow and profit remain
comfortably within our bank covenants but it is unlikely that our new
initiatives will compensate for the recent drop in sales within this financial
year.'

For further information, please contact:

Peter Ward
Chairman of Toad Group plc 020-8710-4000

Wilson Jennings
Finance Director of Toad Group plc 020-8710-4000



                      This information is provided by RNS
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