SVE Starvest Plc

RNS No 7510b
SAVE GROUP PLC.
22nd July 1997


        TRADING UPDATE IN RESPONSE TO SHARE PRICE MOVEMENT
    
                                   
The Board of Save Group PLC. has noted the recent fall in the market price of
Save's shares for which it knows of no reason.

The Board anticipates that it will publish its results for the half year to 30
June 1997 in early September.

On 4 June 1997 at the Annual General Meeting, the Board stated that profits
for the first half of the current year were unlikely to be very different from
those of last year.  It is now anticipated that the first half will show
profits marginally ahead of the comparable period for 1996 (despite the LRG
duty advantage which applied in the first half of 1996) and the Board expects
to declare an unchanged interim dividend at that time.

Overall, trading margins in the petrol retailing market have improved over
recent weeks with part of the price rise in early June holding in most
locations and the market price for buying product having eased. The petrol
retailing market continues to be highly competitive.  In a small number of
areas, petrol is being sold at prices below the delivered cost of fuel by some
of our competitors.  In these areas, Save is not competing on price, but
continues to earn its normal margin on reduced volumes.

Total volumes of petrol being sold by Save in recent weeks are significantly
ahead of the comparable weeks in 1996 when the Price Watch campaign was at its
worst in pricing terms.  As always, Save's trading objective will remain the
maximisation of gross profit and, under current market conditions, the Board
considers that growing volumes by sacrificing margins would be counter
productive.

The Group's indebtedness has recently increased significantly in response to
stocking tanks ahead of the budget, a change in supply arrangements with one
of the Group's suppliers (which has improved overall profitability) and normal
seasonal features.  Despite this increase, the Group's borrowings are,
however, within existing facilities and there are no breeches of the covenants
relating to the facilities.  Borrowings will reduce significantly over coming
months in line with normal seasonal trends and as new duty paying arrangements
become effective, particularly after the ICI contract ends on 31 December
1997.

The outlook for the second half of the current year is little easier to
predict than at the time of the AGM statement.  The Board is, however,
confident that SAVE will continue to be one of the few profitable petrol
retailers/wholesalers in the UK.

Enquiries:

James Frost        Chairman               01296 436661
John Murgatroyd    Finance Director       01296 395951


END

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