HPT High-Point Ren.

RNS Number:9270L
High-Point Rendel Group PLC
22 October 2001

Trading Update


The Board of High Point Rendel plc ("HPR" or the "Company") has recently
concluded a review of its global operations in the light of the tragic events
of 11th September and the subsequent military action.


HPR is an international, multi-disciplinary group of companies, a significant
part of whose activities comprise capital project consultancy. A material
proportion of revenue is derived from countries in the Middle and Near East.


The current world crisis has caused particular uncertainty in the economic
climate of these countries. A significant part of the Company's business is
the provision of project management and advice on very large capital projects
with long term contracts for clients such as governments, international
financial institutions and insurers, in which payment is made in stages or
when significant milestones are reached. HPR's accounting policy in respect of
these contracts is to recognise profits on an accruals basis as they become
attributable to the work performed, having regard to the final anticipated
outcome.


The board believes that, as a consequence of the uncertainty, there may be
increased risk of delays to collection of both outstanding debts and stage
payments in respect of ongoing projects. Likewise, the ongoing fragility of
the insurance market may delay the payment of outstanding claims, even where
claims are fully justified.


It is not possible to predict the impact of these unique events but the board
believes that it is prudent to make a significant special provision of #3
million against the Company's exposure in the Middle and Near East. This
provision will materially affect the reported profit for the year to 31 July
2001. This is likely to result in HPR reporting a loss before interest and
tax, (but after exceptional items, which include the special provision) of
approximately #1.1 million. Hopefully, time will prove the provision to have
been prudently based, especially given the Company's long history of
successful fee collections.


In the absence of this provision, trading for the year to 31 July 2001 was in
line with market expectations.


As a further act of prudence the board has taken measures to reduce the
Company's overheads.


The Company continues to secure high quality projects around the world and to
date no cancellation of business has been experienced.


Other than those matters described above, which are outside the control of the
Company, the board is pleased to announce strong progress in other areas of
the business, including the award of new projects in the UK, in Europe,
Ukraine, Bangladesh and the Asia Pacific region. A record order book is in
place. Meanwhile, the Sure Power business continues to progress and is now in
a position where a range of products is available complete with a
demonstration facility. A strong marketing campaign is underway and Sure Power
has formed relationships with, and submitted proposals to, several major
institutions and developers.


The board believes that the Company, whose primary asset is the quality of its
employees, will continue (ignoring these exceptional items) to trade
profitably despite the current global uncertainty. Historically, economic
downturns have brought greater demand for the Company's internationally
renowned turnaround services.


The board believes that existing authorised bank facilities are sufficient to
cover the Company's cash needs despite the likely delays in payment against
which the special provision has been made.


The company will announce the results for the year to 31 July 2001 in November
2001.

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