TGI Tgi

RNS No 8665w
TGI PLC
29th January 1999

                           TGI plc
                   ("TGI" or "the Group")
                              
                       TRADING UPDATE

TGI  plc announces today that the Board expects results  for
the  year to 31 March 1999 to be significantly below current
market forecasts.

As  mentioned  at  the  time  of the  interim  statement  in
November, Tannoy Hi-fi suffered as a result of the  economic
problems  in  the  Far  East during the  six  months  to  30
September  1998, exacerbated by distributors in  the  region
running  down their stocks of Hi-fi products in response  to
general  market  uncertainty.  We expected  the  markets  in
China  and Japan to recover in the second half of  the  year
and  whilst  the Japanese market has shown some improvement,
the  market  in China has yet to recover.  Tannoy's  trading
performance  for  the full year is therefore  likely  to  be
significantly below budget and previous expectations.

In   addition,  TGI's  Automotive  business   has   seen   a
significant deterioration in sales since the interim results
were reported.  While it is not unusual for this division to
see a softening in volumes at this time of year, we have not
previously experienced such a sudden and substantial drop in
the level of short term activity.

These factors, coupled with the large exceptional cost which
was  announced  at the time of the Mordaunt  Short  closure,
mean   that  the  Group  profit  before  taxation   is   now
anticipated  to  break  even  for  the  full  year,   before
incurring  net  exceptional costs  of  approximately  #1.5m.
Operating  profit on continuing operations for the  year  is
expected to be approximately #1m.

Outlook

Despite  the  disappointing trading forecast  in  the  Hi-fi
business, the problems are specific to the Far East, and, in
particular, China and sales elsewhere in the Hi-fi  business
are  encouraging.   Furthermore, sales in  our  Professional
business  continue to hold up reasonably well  in  difficult
market conditions.  Within the Automotive business, we  will
address  the  slowdown with cost improvement programmes  and
the next financial year will also enjoy the full benefits of
our new Hungarian facility.

Notwithstanding  the disappointing full  year  forecast  for
trading, the Board anticipates that gearing at the year  end
will  remain very low.  Furthermore, at this stage the Board
intends to maintain the level of the final dividend.

Enquiries:

TGI plc                                        01705 400 090
Nigel Hamilton, Chief Executive
Peter Russell, Finance Director

Square Mile Communications Limited             0171 583 4567
Tim Jackaman / James Melville-Ross


END

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