RNS Number:5654M
Malcolm Group PLC (The)
20 June 2003





20 June 2003


                             The Malcolm Group plc


                        Annual General Meeting Statement



Speaking at the Annual General Meeting of The Malcolm Group today, the Chairman
of the Group, Sir Donald MacKay, made the following comments on current trading:


Overall


The challenging trading environment I outlined in the Annual Report and Accounts
continues. Market conditions are very competitive and margins remains under
pressure. However the Group has retained its existing customer base and has
built on this with important new contract wins.


Logistics Services


Year to date activity levels in the Logistics Services Division are ahead of the
same period last year, due in the main to contract wins in the second half of
last year.


The investment in our depot infrastructure over the last few years, combined
with our new warehouse management system have contributed to the successful
renewal of several contracts with key customers, in addition to securing
substantial new business.


Construction Services


The temporary delays to project commencement dates experienced during the second
half of last year have ceased. The projects concerned have now started, giving a
positive impact in the current year.


Activity levels have been strong throughout the division, despite continuing
competitive pressures. The one-stop-shop approach continues to give a high
utilisation of the Division's assets.


Summary


Overall, the Group is competing successfully in difficult market conditions,
allowing us to view the future with some confidence.


I now pass the Chairmanship of the Group over to David Mackay, in the knowledge
that the Group has a committed management team, a strong balance sheet and a
robust development strategy to meet the challenges ahead.



Enquiries:

Sir Donald MacKay, Retiring Chairman
David Mackay, Incoming Chairman
Andrew Malcolm, Chief Executive
Alan Palmer, Finance Director
The Malcolm Group plc                                    01505 324321

Byron Ousey / Lindsey Harrison
Gavin Anderson & Company                                 020 7554 1400



Notes to Editors:


The Malcolm Group is a leading UK transport company, based in Glasgow, offering
both road and rail haulage. The business consists of two divisions, Logistics
Services and Construction Services. The Group has an expertise in operating
logistics services and specialises in the glass, building materials, building
products, paper and drinks sectors including the growing ready-to-drink market.
The Group offers 3rd party logistics controlling delivery from the end of the
production line to the ultimate delivery point.


Logistics Services


The Logistics Services Division supplies storage facilities, long-haul road and
rail transport and warehouse management services. The Division controls over 20
UK locations with major depots at Linwood, Newhouse and Grangemouth in Scotland,
and Haydock, Sharpness, Preston and Crick in England.


Construction Services


The Construction Services Division offers a package of services including site
excavation, earth removal, drainage, foundations, plant hire, landfill sites and
waste recycling - a "one stop shop" approach. The Division has recently won
major PFI contracts, including substantial school projects, together with
commercial and industrial developments.







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