RNS Number:8968W
Gowrings PLC
9 January 2001


FOR RELEASE                               7.00 AM
9 JANUARY 2001


                                 GOWRINGS PLC
             (Burger King Restaurants and Ford Motor Dealerships)


            Difficult trading conditions likely to impact profits
                        expect An IMPROVEMENT in 2001


At the time we issued our interim results in August we commented that trading
for the Group since the end of June had continued to be difficult and that
uncertainty in the motor industry had affected the performance of the
dealerships but we looked forward to an improved trading picture in the
autumn.  Unfortunately, trading has remained difficult in both our businesses
in the second half.  Consequently we expect the results for the year to be
below current market expectations.


In the motor business the improved trading levels expected in the second half
have not come through. This is due to lower manufacturers' incentives and
margins in a competitive market for new vehicles.  In addition, the fuel
crisis had a serious effect across the motor business during the busiest month
of the year.


In our Restaurant Division we commented that turnover during the summer was
behind last year but we expected to benefit from stronger trading in the
autumn.  We saw an uplift in early September; however, the drive-thru
restaurants in particular suffered as a result of the fuel dispute and the
improvement was not sustained.  In fact the situation in November and December
worsened when like-for-like sales remained negative as a result of continuing
poor weather and rail disruption.  In addition we believe that media
speculation over European beef had a negative influence on demand in the UK.
Overall like-for-like sales for year were down 2%.



A number of positive factors should improve the outlook in 2001, including
cost savings implemented in both businesses.  In Motor there should be
increased stability now that Ford has adopted a new lower price policy.  The
new Mondeo has been successfully launched, and we have a strong fleet order
book.  The Oxford bodyshop, opened in May 2000, should be in profit for the
whole of 2001. In Restaurants, the development continues, with five new stores
due to open this year at Sutton Coldfield, Havant, Martineau Square in
Birmingham, Gunwharf Quays in Portsmouth and including the recently contracted
site in Reading.


Despite the disappointment, caused primarily through external factors, the
company has an excellent management team and remains optimistic that its
future expansion plans remain on course.  We are underpinned by our strong
asset position of 168p per share and we expect that 2001 will see a return to
more normal trading conditions and an improvement in our trading performance.


Enquiries:

Derek Coulson, Chief Executive                       01635 866055

David Gray, Finance Director                         01635 866055

Brian Coleman-Smith / Amanda Sheehy                  020 7786 9600

Binns & Co Public Relations



Background note:

Gowrings is quoted under Restaurants, Pubs and Breweries.

The Group currently operates from 46 locations and has approximately 2,000
employees.

The Restaurant division operates a chain of 38 Burger King restaurants of
which 27 are in the South and South West of England and 11 are in the
Midlands.

The Motor division has three main Ford motor dealerships in Wokingham, Newbury
and Bracknell and four bodyshops in Newbury, Wokingham, Swindon and Oxford.