RNS Number:5530B
Alba PLC
06 August 2007


Alba plc



Interim management statement

Alba plc is a leading distributor in the UK and Europe of consumer electrical
and leisure goods, with a portfolio of brands that includes Alba, Bush, Grundig,
Breville and Hinari



Overview

In line with the Group's new business plan, sales for the three months to June
30 2007 have been 36% lower than in the previous corresponding period last year,
but with improved margins. Stock levels at June 30 were 40% lower than at the
same date last year with net bank debt of £58.5m (2006: £82.5m).



UK Consumer Electronics

The Group has restructured the operations considerably and the new
organisational structure is now in place and working well from a single office
at Elstree, Hertforshire. New business has been obtained from significantly
wider distribution channels.



Grundig MultiMedia BV

The Company is starting to see an improved performance particularly with regard
to product reliability and a corresponding lower rate of returns which is
enabling both sales growth and margins to be in line with budgets.



Far East

Sales overall continue to be influenced by developments in the UK Consumer
Electronics division. The Medical Electrical Devices business continues to
develop strongly.



Leisure Division

The Board announced on 3 August 2007 the proposed sale of the Leisure Division
for £51.5m in cash, which is subject to Shareholder approval at an EGM.

For the three months to end June, performance, in a subdued market environment,
has been towards the low end of the range of management expectations.



Management and Board

Digby Jones resigned as non-executive Director on his appointment to a role in
Government. David Allen stepped down as an executive Director whilst
negotiations continued with regard to the sale of the Leisure Division.  A
search for new non-executive directors is underway.




Current trading and prospects

The Board maintains its previously stated position with regard to expectations
for current year trading and future prospects.

Trading in the current financial year is in line with the Board's expectations
and the new business plan. The benefits to be accrued from the restructuring and
re-positioning programme are expected to become apparent in the second half of
the current financial year.

The Board believes that Alba plc has fundamentally changed the way it manages
its business. Brands & product ranges are focused, customer partnerships have
been strengthened and operational efficiency is now market leading.

Having refocused the brands and removed a significant amount of the fixed cost
base, the Board expects the company to experience a strong recovery in margins
in the current financial year. Whilst revenues are expected to fall, the
business model is expected to remain cash generative.

Over the course of the next three years the Board believes that value will be
created and realised for shareholders through organic growth, recovery in
margins and the proceeds received from the sale of non-core assets.




                                                                 6 August 2007

ENQUIRIES:


Alba plc                                                    Tel: 020 8238 7650
Daniel Harris, Chief Executive
Andrew Rose, Finance Director


College Hill                                                Tel: 020 7457 2020
Anthony Parker
Gareth David




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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