3rd Oct 2005 07:01
MFI Furniture Group PLC03 October 2005 3 October 2005 MFI Furniture Group Plc Trading Update and Appointment of Chief ExecutiveTrading Since our last update on 8th September, trading in the UK Retail division hasdeteriorated further in a volatile market place. Net orders during this shortperiod show a year on year decrease of 31% on both a total basis and on a samestore basis, compared to the 15% decline reported for the previous 13 weeks on8th September. Howden Joinery and Hygena Cuisines continue to perform well and to trade in linewith our expectations. The supply chain is performing effectively. Historically, the remaining months of the year have relatively low sales volumesfor UK Retail. If the trend of the past few weeks were to continue for theremainder of the year, and assuming Howden continues to trade in line withexpectations, management would expect the Group to make a small loss before taxand exceptionals for the full year. Financing The Group is not in breach of any banking covenant. However, in the light of thedeterioration of retail trading conditions, management has been in discussionswith the Group's lenders regarding future arrangements. These discussions areconstructive and the board expects good progress to be made. Management changes John Hancock, Chief Executive Officer, has left the business with immediateeffect. Matthew Ingle, Managing Director of the Howden Joinery business, has beenappointed as Chief Executive. Matthew will review the Group's performance andstrategy and an announcement covering this review will be made when conclusionsare reached. Steven Round has been appointed Managing Director of UK Retail withimmediate effect. Ian Peacock, Chairman, said, "With his track record of building the successfulHowden business and his strong operational skills, we are very pleased thatMatthew is becoming Group Chief Executive. Matthew has over twenty yearsexperience selling kitchens and understands the issues faced by the Group. " Matthew Ingle, Chief Executive, said "This is fundamentally a good business. Myimmediate concern is to maintain the strong momentum of Howden and improve theperformance of UK Retail. I am urgently reviewing the strategy of the Group andI am determined to improve performance." Enquiries Mark Robson Chief Financial Officer 020 8913 5350 Susan Gilchrist / Fiona Laffan Brunswick 020 7404 5959Anna Jones Notes to Editors Matthew Ingle • Matthew Ingle joined MFI in 1995 and has successfully led the development of the Howden Joinery business over the past ten years • Under his leadership, in five years Howden has increased operating profit from £9 million in 1999 to over £100 million in 2004 • Matthew has twenty years experience in the kitchen market, and has been on the board of MFI for seven years Steven Round • Steven Round joined MFI in 2003, and was Commercial Director for UK Retail for a year before becoming head of Hygena Cuisines • Steven has a strong marketing background, having worked for Guinness and Beechams before spending 11 years at Kingfisher Plc, latterly as Managing Director of Woolworths General Store This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Howden Joinery