Bill Armstong comments on Spicers Results

Bill Armstrong, Chief Executive of Spicers commented on Spicers results for the year ended April 2003.

Spicers operations across Europe made good progress in the year.

The UK business successfully rebuilt service levels as well as operating and financial disciplines. This combined with the exiting of unprofitable business and substantial cost reductions resulted in a good improvement in profitability. This was a commendable turnaround involving a strong team performance.

The slowdown in the French market intensified in the course of the financial year and this adversely affected Spicers growth in the second half. Profits were lower principally as a result of increased costs put in to support future sales growth, including the establishment of a central warehouse.

Spicers Germany made good progress in rebuilding customer confidence by providing consistently high service levels and in expanding its dealer network; this resulted in sales growth despite weak market conditions.

The Spanish operation, launched in April 2002 is steadily building turnover; good catalogue sales in 2003 auger well for future development.

Spicers sales in continental Europe now account for 40% of its total sales and over the last three years business there has grown by 70%. In line with the strategy of continued development of Spicers in continental Europe, preparation is underway for entry into the Italian market in late 2004.

For further information please contact:

David Grassby,
Marketing Manager
Spicers, Sawston.

T: 01223 822417
M: 07876 446200
F: 01223 822703
E: david.grassby@spicers.net