10 October 2008

NEUTRAHEALTH PLC ('the Company')

OPERATIONAL CONSOLIDATION

NeutraHealth plc, one of the leading UK vitamins & supplements companies, announces that it is improving efficiency and reducing overheads by relocating all of its Bristol based operations to Swadlincote, Derbyshire.

Consolidation

Brunel Healthcare, a subsidiary of NeutraHealth, has distributed from two sites since NeutraHealth acquired operations at Swadlincote in June 2008. This structure, with duplicated warehouse and support costs, has been under review since acquisition. The decision has now been made to consolidate the two into one operation based entirely in Swadlincote. Remaining Bristol based administrative and operational functions will be transferred to the larger Swadlincote facility by the end of the year. 

This will allow the Company to reduce overheads as the multiple retail division focuses on delivering its organic growth strategy within this key sales channel. The board further anticipates that the move will result in cost savings of more than £0.5million in 2009.  

The Company is trading in line with current market expectations.

Ray Myers, Chief Executive, commented:

'This consolidation will make the Company more effective in delivering service, quality and innovation to customers, while reducing overheads. This operating structure is more suitable for achieving future growth and is more appropriate for the continuing profitability of the Group.'

For more information:

Further information for investors is available on the Company's website at www.neutrahealthplc.com/