PHD Proactis Holdings Plc

RNS No 8951t
PETERHEAD GROUP PLC
19th December 1997

Contacts: Campbell Allan, Chairman
          Peterhead Group PLC
          Tel:  0171 236 6236

          Alistair Mackinnon-Musson
          Ian Bailey
          Square Mile Communications
          Tel:  0171 583 4567

                   Peterhead Group PLC
             ("Peterhead" or the "Company")
                            
Current Trading

At   the  time  the  interim  results  were  released  in
September,  Peterhead  announced  that  the   levels   of
business   activity   in   its  principal   subsidiaries,
Peterhead  Crane  and the Birchwood companies  were  much
higher  than  previously  anticipated.   This  trend  has
continued  and the respective hire fleets are now  larger
than  at  any  time in their history.  Profits  in  these
subsidiaries in the second half of the financial year  to
31  January  1998  will, subject to  the  usual  seasonal
fluctuations in Peterhead Crane, match those realised  in
the  first half year.  In addition, the quarry  owned  by
Kells Sand and Gravel, relating to the Company's previous
activities,  is  proving  to  contain  larger  commercial
reserves  of stone and sand than was previously expected.
Consequently  Kells should make an increased contribution
to  the  Company's profits for the following year  to  31
January 1999.

In  September,  it  was also stated  the  performance  of
International  Cranes,  the Company's  equipment  broking
division,  had been slower than expected as a  result  of
lower  volumes of equipment disposals.  The disappointing
results  from  this division have continued  and  it  has
incurred  significant losses.  The  Board  has  therefore
decided  to close and/or dispose of the business and  has
taken steps to minimise its continuing negative impact on
the  Company's profits.  In future, Peterhead  Crane  and
Birchwood will respectively assume responsibility for the
disposal of its used cranes and forklift trucks.

As   a   result  of  the  losses  incurred  to  date   by
International  Cranes,  the  costs  associated  with  its
closure  and/or  disposal  and certain  other  unforeseen
write-offs,  unconnected to the activities  of  Peterhead
Crane  and Birchwood, as well as one-off costs in respect
of  the  decision  not to proceed with the  Opal  Tankers
transaction,  the Company's earnings per  share  for  the
current financial year will be substantially below market
forecasts.  The Board believes the Company has identified
all such losses, costs and write-offs and is taking steps
to obtain independent confirmation that such is the case.

The  previously announced review of Peterhead's debt  and
asset  finance structure, including additional debt taken
on  to  finance  the  increase in the crane  hire  fleet,
continues  and  is  expected  to  be  concluded  by   the
financial year end.

Capital Reconstruction

The    Supplementary   Listing   Particulars   sent    to
shareholders  in  March contained details  of  a  capital
reconstruction  whereby,  inter  alia,  the   accumulated
deficit  on  profit and loss account,  arising  from  the
Company's former activities, would be eliminated  by  way
of  a  capital reduction.  At the time, this deficit  was
stated  at  approximately IR#9.7 million,  based  on  the
Company's audited accounts for the year ended 31  January
1996  (the most recent then available), and the requisite
shareholder approvals were obtained in April 1997.  As  a
result of the losses incurred in the financial year to 31
January  1997  and  other  adjustments  to  reserves,  as
detailed in the Company's 1997 Report and Accounts,  this
figure  rose to approximately IR#11.7 million  as  at  31
January   1997.   The  Board  proposes  to  seek  further
shareholder approvals to eliminate the additional deficit
of  some  IR#2.0 million and to delay the application  to
the  High  Court in Dublin to confirm these arrangements,
referred  to in the Chairman's annual statement  in  July
1997, until such approvals have been obtained.

Board

As  has  already been announced, the Chief  Executive  of
Peterhead  resigned  in October.  The  Board  intends  to
announce his successor early in the New Year.


END

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