GKLL Gaskell

RNS Number:6617I
Gaskell PLC
16 February 2005

Gaskell PLC ("Gaskell" or the "Group")



16 February 2005



Trading Statement


The Board of Gaskell last provided a trading update on 26 November 2004, which
referred to the continued difficult market conditions in certain of the Group's
markets, to Gaskell continuing to make losses, and to the Board considering
options to improve trading performance and strategic alternatives for the Group,
including the restructuring of certain parts of the business.

Gaskell continues to be loss-making and the Board continues to explore strategic
alternatives for the Group.  The Group's bankers have indicated a willingness to
extend Gaskell's borrowing facilities for a short time in order to facilitate a
solution, though the overdraft remains repayable on demand.  In light of this,
the Board is seeking to re-finance the Group in the short term, including the
arrangement of new working capital facilities, though securing such a
re-financing is by no means certain.  The Board is also reviewing other
initiatives including the sale of all or certain parts of the Group's
businesses, extended credit arrangements from certain of Gaskell's creditors and
the possibility of an injection of new equity.  However it should be noted that
the Board is also seeking to reach agreement on standstill arrangements with the
trustees of Gaskell's pension funds and this will be necessary before any
potential new equity injection could be considered.

Shareholders will be updated as appropriate.


Enquiries - 01254 770 222
Gerry Wheeler - Chief Executive
Richard Hopkin - Finance Director




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