MYW Merrydown

RNS Number:8715A
Merrydown PLC
15 July 2004


                                                                    15 July 2004

                                 Merrydown PLC

             Merrydown's highly successful brand building strategy
                         takes a further important step

The Board of Merrydown PLC, which markets the Shloer adult soft drink and
Merrydown cider brands, today announces its decision to cease manufacturing and
focus on its successful brand management strategy.

   * After extensive evaluation of the options we have concluded that to make
     best use of the Group's resources and progress our successful brand
     management strategy we should close the manufacturing site at Horam. This
     will very regrettably mean the loss of approximately 35 jobs. During the
     period to 31 March 2005 production will be moved to a number of
     well-established sub-contract manufacturers.

   * Restructuring costs and fixed asset write-offs will amount to #2.5m in
     the year to 31 March 2005. We are advised that the gain on disposal of the
     site should be substantially in excess of this cost and is likely to be
     realised in the year to 31 March 2006.

   * In the current and next financial years the overall impact on operating
     profit before exceptional items will be neutral. In subsequent years we 
     will benefit from wider production capability and overhead efficiencies.

   * The net cash inflow from the exceptional transactions is expected to be
     at least #3.75m. It remains the Board's long-term intention that cash not
     required for the development of the Group's core strategy should be 
     returned to shareholders.

Nigel Freer, Merrydown's Chief Executive, commented:

"This decision is another important step in the strategy of focusing on the
management of our core brands which has transformed the Group since it was
refinanced and reorganised in 1998.

"Given Merrydown's history in Horam this is a painful decision which has not
been taken lightly but, in the final analysis, we believe this is the best use
of assets and concentrates our resources on the strategy of managing our
brands."

                                    - Ends -

For further information, please contact:

Merrydown PLC                                                     020 7067 0700
Nigel Freer, Chief Executive
Mike Dinnis, Finance Director

Weber Shandwick Square Mile                                       020 7067 0700
Chris Lynch / Katie Hunt                                           07884 494112

    Print resolution images are available from Weber Shandwick Square Mile.


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

END
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