Lincat Group plc ("the Group")

Lincat Group plc issues the following trading update covering the period since the release of its interim results to 30 June 2008.

Order levels around the Group have slowed in the second half of the year, as our customers respond to the worsening economic climate. At the time of the Chairman's statement in August we anticipated that a strong second half performance from Britannia would be sufficient to generate sales growth across the Group. Britannia is performing as forecast but nevertheless we now expect that Group turnover between July and December 2008 will show little change on the levels achieved from January to June 2008.

Despite recent falls in oil and metal prices, we are experiencing some pressure on gross margins; however, other operating costs are expected to be lower in the second half of the year. Overall, we now anticipate that July-December operating profits will be at a similar level to those recorded in the first half.

Following the receipt in September of a second £1m payment against the sale of IMC's former manufacturing site in Hertfordshire, the Group continues to reduce its borrowings ahead of schedule and remains on course to repay all of its bank debt by the end of June 2009.

6 November 2008