RNS No 3967t
FILOFAX GROUP PLC
1st April 1998
 
                         Filofax Group plc
                                 
            Disposal of Henry Ling and Son (London) Ltd
 
Filofax Group plc today announces the disposal of its greeting
card subsidiary Henry Ling and Son (London) Ltd ("Henry Ling").
 
This follows the announcement by the Group of a strategic review
on 10 November 1997 and the further announcement on 19 February
1998 regarding the tentative discussions held with a number of
parties in relation to its strategic options.  As part of the
review the Board has decided to dispose of its non-core greeting
card business.
 
The business, assets and liabilities of Henry Ling have been sold
to a private buyer for a maximum cash consideration of #1.0
million subject to the preparation of completion accounts.  The
proceeds will be added to the Group's existing cash balances.  The
disposal of the business, which was acquired in 1994 for #5.4m,
will involve a write off of goodwill and therefore result in a pre-
tax loss on disposal of over #6.5m.  The reduction in Group net
assets arising from the disposal is not expected to be greater
than #2.0m as the projected loss on disposal of #6.5m includes
goodwill previously written off of #4.8m.  The business made a
profit before tax of #188,000 in the year to 31 March 1997 and had
net assets of #2.4m at 31 March 1997.
 
Group trading in the second half of the 1997/8 financial year has
continued to be affected by the strength of sterling.
Nonetheless, underlying sales have grown in all areas except Henry
Ling, which in the current year was disappointing.  Pre-tax profit
on continuing activities for the year ending 31 March 1998 is
expected to exceed #6.0m (1996/7:#5.7m).
 
The Board is continuing discussions with third parties in relation
to strategic opportunities open to the business.  An announcement
will be made as soon as these discussions are concluded.
 
For further information, please contact:
 
Filofax Group plc                          0171 432 3000
Robin Field, Chief Executive
Chris Brace, Finance Director
 
Ludgate Communications                     0171 253 2252
Terry Garrett
Carolyn St Aubyn
 
 
END
 
 


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