DIP Dipford Grp

RNS Number:0799J
Dipford Group PLC
18 September 2006



                               DIPFORD GROUP plc



Annual General Meeting  and  Trading Statement



At today's AGM, all the resolutions tabled were passed.

The Executive Chairman, Jonathan Custance Baker announced that trading was
currently running at a level which meant that the Group could not now be
expected to meet market expectations for the full year to 30 April 2007. Profits
before tax and goodwill amortisation are likely to be lower than last year. The
two most recent acquisitions, Kings Business Transfer and Bruce & Company
Limited, have been trading in line with expectations. The third, Redwoods
Dowling Kerr, has not achieved its anticipated sales targets, in either volume
or value. While we have not yet completed the first half of our financial year,
the Board feels that it is prudent to assume that this situation is likely to
continue for the balance of the Group's financial year. We have also conducted a
debt collection review that has led to materially increased provisions. However,
a significant proportion of the current year charge for bad debts relates to the
end of the earnout year for Kings Business Transfer and is not expected to
re-occur in future periods.



As a consolidator, the Group has made one or more acquisitions in every
completed financial year to date. The Group continues to have a number of
acquisition projects under review. The Board does not, however, feel that any of
these are likely to contribute in the current year.



An analysis of the Redwoods Dowling Kerr sales indicates that these have been
completed at a lower price per deal than that achieved by Dowling Kerr prior to
its absorption of Redwoods. Tighter bank lending requirements and more
conservative business valuations have contributed to the reduction in the number
and speed of deal completions. Buyers' interest rate fears and the Chancellor's
major announcement on nursery sector funding have also affected the market.



The effect of these factors was masked by significant trading volatility during
the summer months which has now become clearer and resulted in the need for this
announcement.



Looking forward, one of the long-term indicators of future turnover and profit
is the number of businesses signed up for sale. This has been on a long-term
upward trend which the Board remains confident will continue. This should enable
us to return to the growth which has characterized the Group since its creation
four years ago.




For further information please call:



Jonathan Custance Baker - Executive Chairman     Tel:   01392 256800
Barrie Newton - Rowan Dartington                 Tel:   01179 330011






                      This information is provided by RNS
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