RNS Number:9955L
Tenon Group PLC
06 June 2003


                                Tenon Group PLC
                            ("Tenon" or "the Group")
                        AGM Statement and Trading Update

Neil Johnson, Chairman of Tenon, will make the following comments at the Group's
Annual General Meeting to be held today:

"In our preliminary announcement on 26 March 2003 we confirmed our intention to
complete a fundamental review of the Group's operations.  Since that
announcement we have:

- withdrawn from a number of non-core business activities;

- continued the programme of reducing our fixed cost base and improving 
  productive efficiency, including significant reductions of staff at all 
  levels;

- revised our operational management structure, creating an executive team drawn 
  from the most successful leaders of our acquired businesses;

- focused upon performance management to encourage further development of 
  dedicated talent from within our businesses, and

- restructured our bank facilities to meet the needs of the business.

Following the 2002 results, we continue our work to establish consistent
profitability in the business. The Board of Tenon today announces:

- the withdrawal from our Dover Street head office and the transfer or
  absorption of head office functions into other existing locations,  resulting 
  in a significant reduction in  central costs;

- advanced negotiations in the appointment of a Group Finance Director to
  strengthen further the Executive Board and

- the change of our year end to 30 June to fit more suitably with the
  activity patterns of our business.  Interim statements to 30 June 2003 and 31
  December 2003 will include an appropriately enhanced level of information.

We expect that the full impact of the many changes that we have made in recent
months will incur exceptional and non-recurring  charges, including trading
losses on discontinued activities, of between #11m and #12.5m.  The benefits of
these necessary changes will be felt in the second half of this calendar year
and beyond.

During the past five months, our trading has not been immune from the influence
of global and local market conditions.  No notable improvement in business
climate has been apparent in comparison to the conditions that prevailed during
our disappointing 2002 second half-year.  However, we believe that, independent
of market conditions, the activities outlined above and the continuing search
for further efficiencies will secure a better performance and a more reliable
result in the near term and will demonstrate, from the second half of the
current calendar year, the prudence of rebasing our business costs and client
offering.

It is particularly pleasing to note that, throughout the past four months of
fast moving corporate changes, we have enjoyed the consistent support of our
staff and, most importantly, our strong client base.  On a business to business
basis our customers recognise our robust response to many of the same issues
that they are facing in their own companies."


                                                                    6 June 2003


Enquiries:

Tenon Group PLC                                      Tel: 020 7499 1666
Andy Raynor, Chief Executive

College Hill                                         Tel: 020 7457 2020
Kate Pope



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