Marlwood Plc

April 30, 2010 11:46 ET

Quarterly update - March 2010


Marlwood  plc  ("Marlwood, the Company or the Group") (CSX:MARL KY), a group specialising  in  the
licensed goods business today announces its trading update for the quarter ended 31 March 2010.


    *   New Licence agreements signed and introduced for sales activity starting during the second
        half of the year under the Gotcha, RAC, Marilyn Monroe and Bang on the Door brands.  We believe
        all  licenses  will strengthen the current product offering, add diversity and  widen  the
        distribution of the products across a broader demographic and geographical base.

    *   Appointment of two distributors and two sub-licensees to sell and promote our brands and
        products in Norway, Sweden, Australia and New Zealand.

    *   Strengthened our Hong Kong sourcing office by the introduction of new supply factories
        across our product range.

    *   Negotiation of the sale of the clearance business which management believe will add focus
        and strength to the licensed business.


Trading  across  the group was inline with management expectations with the first quarter  of  the
year  typically being one of relatively low activity.  Turnover was in line with forecast and more
positively  gross  margins  were maintained at 34%.  Distribution and  overhead  costs  were  well
managed being marginally under budget.

The  financial  position of the group as at 31 March 2010 is strong with a Net Asset  position  of
over GBP4.2m.

As at 31 March 2010, the Group had cash in hand or available from funding of over GBP300k.

As  at  31  March  2010, the Group had a sales order book for 2010 delivery  of  GBP1.9m  (2009  -


With  quarter 1 being in line with management expectations and the sales order book building  more
quickly  than in 2009 the outlook for the balance of the year looks positive.  The board  believes
that the introduction of new products and new brands across a wider geographical area will provide
the  sales  team with the ability to build on current sales and distribution and which  should  be
evidenced in the second half of the year.

The board is confident that 2010 should see an improvement over 2009.

The Directors of the Company take responsibility for this announcement.

For further information, please contact:

Marlwood plc                                                   
Pam Hulme, Managing Director                                   +44 161 487 5130
Corporate Advisor                                              +44 207 251 3762
Nick Michaels, Alfred Henry Corporate Finance Limited
Broker                                                         +44 1481 732 766
Robert Tannahill, Cenkos Channel Islands Limited

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