CMM Commoditrade

RNS Number:4496R
Cammell Laird Holdings PLC
25 September 2000


                   Not for circulation in the United States

                          CAMMELL LAIRD HOLDINGS PLC


                     ANNOUNCEMENT OF PROPOSED FUNDRAISING
    Including first quarter results for the three months ended 31 July 2000


Cammell Laird Holdings PLC ("Cammell Laird"), the international marine
services company, today announces plans to raise Euro 125 million by means of
an offering of Senior Notes (due 2010) (the "Senior Notes").  The offering of
these notes requires that the group also publish its unaudited results
covering the three-month period ended 31 July 2000.

Offering of Senior Notes

Preliminary marketing will take place this week for a proposed issue of Euro
125 million in principal amount of Senior Notes, with the aim of pricing and
closing the issue in early October.  The proceeds of the issue will be used by
group companies to repay existing indebtedness and to strengthen the balance
sheet to allow increased working capital for newly acquired businesses and
possible strategic acquisitions and investments.

The Senior Notes will be offered to institutional investors in the United
Kingdom and, by way of private placement, in the United States and Europe.
Application has been made to the United Kingdom Listing Authority for the
Senior Notes to be admitted to the Official List and for their admission to
trading on the London Stock Exchange.  Full details of the Senior Notes will
appear in listing particulars to be issued in connection with such
application.

First Quarter Results

Following the issue of the Senior Notes, Cammell Laird will be required to
report its results on a quarterly basis.  The documentation relating to the
offering will contain unaudited results for the three-month period ended 31
July 2000 and accordingly details of these are being released today.

The results for the three months are as follows:-

                                     Three months    Three months
                                    ended 31 July   ended 31 July
                                             2000            1999
                                             #000            #000
                                                   
Turnover                                   26,148          21,098
Gross profit                                6,145           5,013
Amortisation of goodwill                     (196)           (167)
Other administrative expenses              (6,274)         (4,269)
Other operating income                        405             342
Operating profit                               80             919
Net interest                                 (422)           (217)
(Loss)/profit on ordinary                          
activities before taxation                   (342)            702
Tax                                            69            (204)
(Loss)/profit after taxation                 (273)            498


Commenting on the fundraising plans and the quarterly results, Juan Kelly,
Chairman of Cammell Laird said today:-

"In my July statement, I reported that we were seeking to raise funds to
expand our business.  Having considered various options, we concluded that a
debt issue combined with the recently completed equity placing was the
appropriate balance.  The offering of the Notes will enable us to repay all of
our existing indebtedness while significantly enhancing our ability to pursue
future corporate growth.  Immediately after completion of the offering the
Company's gearing will be materially unchanged from its pre-offering level of
approximately 90%.  On the basis of our market capitalisation at close of
business on 22 September, the debt will represent approximately 24% of our
market value.

Turning to our results, the first quarter, as usual, is the quietest time of
the year for us as it is the busiest time for many of our customers.  The
results reflect this seasonality and the additional planned investment
incurred to support the anticipated growth in turnover from our expanding
business.

Our enquiry levels for work commencing in autumn and winter are significantly
higher than last year, and, with a reasonable success rate from the enquiries,
we expect the benefits from our expanded operations to be reflected in our
performance for the remainder of this financial year.

The fundraising will provide a platform for further growth as well as
supporting planned growth in our existing businesses.  In particular, it will
assist us with developing the full potential of our recent strategic
acquisition in Marseille and investment in Portland.

In addition, the fundraising will enable us to pursue further acquisition
opportunities, which should develop our international network of marine
services and provide further benefits in terms of revenue enhancement and/or
operational efficiencies."


This announcement is not an offer of the Senior Notes for sale in the United
States.  The Senior Notes have not been registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an exemption from registration under that Act.  Any
public offering of the Senior Notes made in the United States will be made
solely by means of a prospectus that contains detailed information regarding
Cammell Laird Holdings PLC and its management, as well as financial statements
of Cammell Laird Holdings PLC, which may be obtained from Cammell Laird
Holdings PLC.

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