ECL Eclipse Vct

RNS No 7827w
ECLIPSE BLINDS PLC
18th November 1998


Trading Statement

In announcing our results for the 6 months to June 1998 we reported that
business confidence was suffering in the UK due to concerns over economic
conditions.

The second half of the year is normally a very strong trading period. 
However, Eclipse's UK customers are reporting difficult market conditions,
with sales to the consumer market down on previous experience.  As a result
Eclipse is not experiencing the expected second half growth in profits, and
sales are currently running approximately 10% below last years level in the
UK.

Sales in the group's other main market - the USA - have continued to grow in
1998 and we believe results there will show very good progress on 1997.  Take
up of a new product launch in the US has however been slower than expected in
the second half of this year and the absence of some of the planned
contribution from this new product will also affect the outturn for 1998. 
Sales at OPM, Sweden, which was acquired in October 1997 continue to be good.

As a result of these factors Eclipse expects that the profit before tax for
1998 will be below last years pre-exceptional figure of #7.17 million.  Cost
reduction measures in the UK business are being implemented.  The Board
expects to maintain the final dividend at the same level as 1997 which
together with the increased interim paid earlier this year would result in a
total dividend payment of 3.72p for the year which would represent an increase
of approximately 3%.

Proposed Acquisition of Scientific Plastics

Despite the expectation that the second half will turn out to be disappointing
we believe the strategy of the group remains correct.  We are therefore
pleased to announce that we have, subject to contract, agreed to acquire the
entire issued share capital of Scientific Plastics Inc. ("Scientific"). 
Scientific which is based in the USA manufactures and distributes a range of
vertical blind components for sale in the USA and selected export markets.  It
has an extensive customer base and the directors believe that a number of
trading benefits will accrue from the acquisition, including:

-   greater penetration for Scientific's products through the Eclipse
    distribution system in the USA

-   enhanced sales for Eclipse products through Scientific's customers in
    the USA and access to certain export markets so far not entered by Eclipse

-   improved competitiveness in the US market by becoming a "full service
    supplier" of vertical blind products

-   vertical integration benefits from the application of Scientific's
    resources to Eclipse products

The terms of the proposed transaction are that Eclipse will pay a cash
consideration of $6 million (#3.6 million at $1.65/#) at completion and will
pay a maximum additional cash consideration of $1.5 million (#0.9 million) in
each of the two years following completion if certain profit targets are
achieved in each year.  In purchasing the company Eclipse will assume debt
which is expected to be approximately $1.3 million (#0.8 million) at
completion.  In the year to 30 June 1998 Scientific achieved a profit after
owners remuneration and interest, but before taxes, of $0.9 million (#0.55
million).  Scientific is expected to have net assets of approximately $1.3
million (#0.8 million) at completion.  The two principal shareholders of
Scientific who are actively involved in the business will remain with the
business following completion and will enter into service contracts for a two
year minimum period.


Ted Black
Chairman
18 November 1998


END

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