CHUK Choicesuk

RNS Number:9543P
ChoicesUK PLC
23 January 2007



Press Release
IMMEDIATE - TUESDAY, 23 January 2007

ChoicesUK plc - Christmas and pre-close trading update

ChoicesUK plc ("the Company") is making a Christmas and pre-close trading
statement for the first 36 weeks ("interim period") of the 60 weeks ending 28
July 2007 ("current year"), the first since the Company changed its accounting
date (see below).

Overall the Company had a record breaking Christmas, with total sales during the
eight weeks ended 13 January 2007 increasing by 15 per cent year on year. The
Company made a pre-tax profit over this period compared with a loss for the same
period last year, reflecting a strong performance by its Direct to Home and
Local businesses.

However, trading for the ChoicesUK stores remained difficult, particularly
during the first 8 weeks of the interim period which was adversely affected by
the audience lost during the World Cup. Despite this and the disappointing
retail trading environment, the Company expects to report a materially reduced
pre-tax loss for the interim period.

Management is considering a strategic plan to ensure the Retail division,
ChoicesUK stores, will not detract from the value and success of other Company
activities.

ChoicesUK Local, remains profitable and continues to expand its customer base.
For example, it recently won a fulfilment contract with Welcome Break for over
60 motorway service stations, and is actively developing other opportunities.

Following the successful integration of its games fulfilment business ChoicesUK
Direct the mail order and internet division returned to profitability and
continues to show substantial growth and opportunity.

Cost reductions continue to be a top priority for management and, as a result of
further restructuring, management plans to save approximately #500,000 per
annum, in addition to the #3 million per annum savings achieved to date. Cash
generation continues to be a key focus. Full interim results will be announced
on Tuesday, 20 March 2007.

Accounting date

Last year, the Board of ChoicesUK plc decided to change the Company's accounting
date to the end of July. This will enable the Company to focus its efforts
totally on the business during key trading periods, and the interim period will
now include the full impact of the Christmas trading period.


For the current year, the period ends for interim and full year financial
reports will be as follows:

Interim period                     10th February 2007 (2006: 17th December 2005)
Current year                       28th July 2007 (2006: 3rd June 2006)

As part of the transition to the new accounting date, interim results for the
current year will include the months of June and July 2006.

END

Contact

Simon Bloomfield or Andrew Harris
Bankside Consultants (Tel: 020 7367 8888)



                      This information is provided by RNS
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