RNS Number:5984N
Blooms of Bressingham Holdings plc
16 July 2003

BLOOMS OF BRESSINGHAM HOLDINGS PLC
16TH JULY 2003


APPROACHES - DISPOSALS - TRADING UPDATE


APPROACHES


On 27th March the Board announced that it was in discussions, which may or may
not lead to an offer for the entire issued share capital of the Company.


The Directors can now inform shareholders that, after considering the proposals
and having concluded detailed discussions, the Board has unanimously decided
that a deal on acceptable terms was not on offer from any of the parties with
whom we had been in negotiation in recent months. As the Chairman indicated in
the Annual Report and Accounts any proposals would need to be on terms that
properly reflect the prospects for further development of the Group's excellent
property assets over the medium term. None of the proposals that have been
received to date have passed this test.


The unaudited Interim results for the 6 months to July 2003 will be announced in
October. These results will include an exceptional charge of not more than
#260,000 in respect of the abort costs associated with the offers.



POSSIBLE DISPOSALS


The Board has received an offer for its three remaining non-core smaller garden
centres, which includes stock at valuation.  In addition the Board has also
received a number of informal approaches for the new plant marketing business.
Providing a satisfactory conclusion to these approaches can be reached your
Board anticipates that the combined effect of these disposals will be to raise
between #1.4 million and #1.6 million, which will reduce net bank debt to under
#7 million.  Completion of these sales will have a small positive impact on
operating profit in the current year and further reduce interest charges.


Provided these sales complete as anticipated, exceptional costs will be at
breakeven apart from the abortive fees referred to above, estimated at #260,000.


Following these disposals, the Group will be focused on its core larger centres
with additional flexibility to take advantage of the considerable development
opportunities opening up to it on its major sites.



The above disposals combined with the disposals referred to by the Chairman in
the annual report, should bring the total cash raised from disposals since the
year end to between #2.8million and #3 million.



TRADING UPDATE



Trading continues to be satisfactory with sales to 13 July ahead by 9.6%
like-for-like and our latest revised forecast for operating profit is
comfortably in line with your Board's expectations.  The Board believes that
this is a particularly creditable result given the huge distraction to
management that has been caused by the unsolicited approaches to which we refer
above.



In addition to being close to having disposed of our smaller centres , we have
made progress with our green field site at Rugby, where our landlord has given
his informal approval to a revised planning application for a 50,000 sq. ft
heated covered sales facility. Early indications from the planners encourage us
to believe that our application will be approved and consequently we will
finally have a satisfactory solution.  Furthermore discussions are continuing
satisfactorily with the planning authorities in connection with our proposed
application to increase the heated covered sales area of our Gloucester site
from its current 9,000 sq ft of space to 50,000 sq ft.  It should be remembered
that our freehold site at Bicester already has planning consent to increase its
heated covered space area by 82,000 sq ft to 100,000 sq ft.



Charles Good, Chairman made the following comments: "We are firmly of the view
that Blooms has passed the low point in its financial fortunes.  The management
team is highly energized by the turn round which they have  delivered and are
looking forward to producing a period of sustained and above average growth in
profits."





Enquiries


Jon Kitching - 01452 887 530
Blooms of Bressingham Holdings Plc


Nick Bankes - 07786 276 368
Teather & Greenwood






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

MSCGUUBWMUPWGRA