RNS Number:6857L
Mallett PLC
14 January 2008

Mallett PLC ("Mallett" of "the Company")



Pre-Close Statement



Mallett today reports on trading for the year ended 31st December 2007 ahead of
the announcement of its preliminary results in March.



Following the Company's interim statement in August 2007, trading conditions
worsened, as with much of the retail sector, and the dollar weakened further.
This has meant that the group's profits for the year to 31st December 2007 are
likely to be below market expectations.



With the help of the sale of 550 items through an auction at Sothebys in March
2007, turnover is likely to be marginally higher than for the previous year.
However, the Sothebys sale contributed only a small amount to operating profit
and margins on general sales throughout the year have been squeezed. The Board,
therefore, now expects group profit before tax for the year to 31st December
2007 to be substantially lower than the previous year (excluding the
restructuring profit in the previous year).



The Company's balance sheet, though, remains strong including a net cash
surplus.  The Company has always looked to pay as high a level of dividends as
prudently possible, and whilst profits will be lower than last year, in light of
the Company's cash resources the directors currently expect to be able to
maintain the dividends for the full year within 10% of that paid for 2006.



Mallett Chief Executive Lanto Synge said "This is a disappointing outcome for
2007 which reflects the ongoing difficult trading conditions in the antique
furniture market and the prospect of a mild recession in the USA, our main
market. Nevertheless, there continue to be buyers of the very best furniture and
decorative arts - our stock in trade - and a relatively small number of high
value sales can have a significant impact on our results. Management are working
hard on a number of initiatives to enhance revenue, including our new
contemporary designs products which are now expected to be launched in the
Spring."




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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