RNS No 5942f
KENWOOD APPLIANCES PLC
24th March 1999



Trading Update


In  the  statement issued with the results  for  the  six
months  ended  2  October 1998, the Board indicated  that
sales and profits had been affected by a serious downturn
in consumer spending and that profits for the second half
would be no higher than in the first half.

Trading  conditions  in  a number of  markets,  including
Eastern  Europe  and  South  Africa,  have  continued  to
deteriorate in the second half.  This, combined with  the
recent  strength of sterling, means that  the  Board  now
expects  the  Group to make a pre-tax  loss  in  the  six
months  to  2  April 1999.  In the absence of  unforeseen
circumstances the result for the full year is expected to
be  around  break-even before tax and exceptional  items.
Working capital and cash flow remain under tight control.

The  continuing difficult market conditions reinforce the
Board's commitment to the strategy of moving Kenwood from
a  vertically integrated manufacturer to a focused  brand
company and the restructuring programme is continuing  at
pace.   The  Group's subsidiary in New Zealand  is  being
closed and restructuring programmes are being implemented
in South Africa, Poland and Germany.

These,  with  other restructuring plans and  asset  write
downs, will result in significant exceptional charges  in
the  full year's results.  These will be largely non-cash
items.

The   impact  of  the  new  product  programme   is   now
accelerating  and the transfer of further  production  to
China is proceeding to plan.  The benefits of these moves
are expected to show next year.


For further information please contact:

Colin Gordon
Chief  Executive, Kenwood Appliances plc      Tel:  01705 476000

Graham Wickenden,
Finance  Director, Kenwood Appliances  plc    Tel:  01705 476000

Simon Rigby, Alex Brown
Citigate  Dewe  Rogerson                      Tel:  0171 638 9571


END

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