MKM Mkm Group

RNS Number:8107H
MKM Group PLC
26 January 2005



                                   MKM GROUP PLC
                            ("MKM" or "the Company")

                                   TRADING UPDATE


The Board of MKM Group Plc, the travel promotions company, regrets to announce
that, as a result of two significant events which have happened in the past few
weeks, it is anticipated that the Group will not now be profitable in the full
year ending 31st March 2005. These events have transpired since the interim
statement which was issued by MKM on the 14th December 2004.


The factors, which will have a serious impact on the expected profitability of
the group, are as follows:


A principal area of business for MKM is the provision of travel and holiday
promotional vouchers and offers. Historically, the promotions that MKM has run
have attracted applicants whose profiles are such that MKM has been able to
generate turnover and profit on overall bookings in connection with the
promotion.


A major cruise promotion commenced last year. Firstly, it was badly affected by
the hurricanes in the Caribbean which caused difficulties and resulted in the
Company having to relocate bookings to Europe and South America. Secondly, in
January, upon contacting the applicants in order to commence the booking
process, it has become apparent that the campaign has produced a very different
booking requirement from that anticipated using management's experience of
previous promotions.  Early indications on this promotion are that a number of
bookings will be taken from travelers from whom the expected level of revenue
will not materialise. As a consequence, there will be a reduction in the overall
revenue anticipated from this promotion.


The management is taking steps to minimise the impact of this change on the
Company but current indications are that such actions will not produce
sufficient revenue to make up the shortfall.  Discussions have been entered into
with the client involved in the cruise promotion but it is too early to forecast
the outcome of these discussions which, in any event, are likely to have a
significant cost effect.



MKM had spent considerable time developing a new product which is a world wide
flight voucher; this had been taken up by a number of companies.  As a result of
the tragic events in the Far East arising from the Tsunami these companies have
decided that it is not appropriate to go to the market with a promotion of this
type and will not proceed at the present time. These decisions will lead to a
reduction in the Company's turnover.



A further statement will be issued when the Board is in a position to quantify
the impact of these events on the Company.



For further information, please contact:_



Mark Koch, MKM                              Tel:       0161 606 0733
David Youngman, W.H. Ireland                Tel:       0161 832 2174


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