RNS Number:2032O
Heywood Williams Group PLC
31 July 2003


31 July 2003

                                Heywood Williams

                    Trading Update & Change of Directorate


In the light of a loss in the six month period ending 30 June 2003, an expected
shortfall in full year profits against current expectations, and the resignation
of the group's chief executive, Heywood Williams, following its board meeting
today, issues a trading update ahead of the formal announcement of the full
interim results on 3 September 2003.

In summary, the scheduled improvements in UK operations are not materialising as
quickly as anticipated, and US markets remain depressed.

Performance

Profit before tax (before exceptional items and goodwill amortisation) for the
first half of 2003 is expected to be a loss of approximately #1.7 million (H1
2002: profit of #10 million) reflecting the delayed turnaround in the UK
operations and poor market conditions in the US.

Net debt at 30 June 2003 is expected to be approximately #43.8 million (2002:
#35.9 million) after the receipt of #8.9 million in part settlement of the
legacy product rectification claim first announced in August 2002.

The balance sheet was further strengthened on 23 July 2003 with the receipt of
the gross proceeds to date of  #34.8 million following the sale of the Creation
Group to Dura.  This could be increased by a further amount of up to #1.8
million dependent on Creation sales over the next year.  This successful
divestment builds on Creation's record setting financial performance in 2002 and
maximises value for the group's shareholders.

Board Change

Ian Stuart has tendered his resignation as group chief executive in order to
seek a new business challenge.  With immediate effect, Hamish Bryce has been
appointed executive chairman, and fulfils the responsibilities previously
undertaken by Ian Stuart.  Roger Boyes, a non-executive director, has become
deputy chairman and William Schmuhl has assumed executive responsibilities for
US operations.  In due course, a search for a new group chief executive will be
initiated.

Dividend

In its circular to shareholders proposing the disposal of the Creation Group,
the company undertook to maintain the 2003 dividend at 2002's level of 15 pence
per share, in the absence of unforeseen circumstances.  The board confirms it
will maintain this undertaking post this announcement.

Operational Reviews

The UK turnaround has not progressed at the rate expected, particularly in the
Plastic Systems Division and Coldseal.

At Plastic Systems costs have to be reduced further and demand has yet to
recover to the levels anticipated following the supply chain disruption which
arose in late 2002 and early 2003.  The situation is slowly improving and all
efforts are being directed towards accelerating this process.

Coldseal, our retail double glazing business, underperformed our expectations.
Efforts to raise margins, improve productivity and strengthen management did
result in a better second quarter performance, but there is still a long way to
go to return this division to satisfactory profitability.

Mila, our specialised component wholesale division, performed satisfactorily,
although their results were held back because of the weakness of Sterling versus
the Euro.

In the US, the manufactured housing (MH) market remains depressed and well below
the level of the previous year.  Pipe volumes and margins have weakened as
recently distributor stocks have temporarily run ahead of final demand.   We
anticipate some recovery in pipe markets later in the year, but the timing of
the long awaited MH recovery remains uncertain.

Prospects

Overall, the second quarter showed an improving trend on the first and was
profitable.

Looking forward, we expect the second half to be below prior year levels.  In
the UK we will continue to drive the operational turnaround in the Plastic
Systems Division and at Coldseal.  Mila will build on its inherent strengths to
improve margin and grow market share.    The remaining US businesses will
continue their strong and proven focus on operational efficiency and cost
control as they await a return to more normal market conditions.

With the group's strong balance sheet, inherently cash generative businesses and
significant market positions in each of its five principal areas of activity,
the board, whilst fully recognising the challenges ahead, remains confident for
the longer term prospects of the group.


For further information please contact:

Heywood Williams                                     01484 487200
Hamish Bryce
Executive Chairman

Financial Dynamics                                   020 7831 3113
Jon Simmons
Meg Baker


Notes to editors:

In the UK, Heywood Williams is the market leader in  PVC windows, doors and
conservatories; in the US it is a leading supplier of components to the
manufactured housing and recreational vehicle market; and a major producer of
plastic pipe products.


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