Date: 19th December 2008

Embargoed: 7.00am

Thomas Walker plc

('Thomas Walker' or 'the Company')

Pre-close trading update

Thomas Walker PLC is today providing an update on current trading to shareholders, before entering into its closed period ahead of the results announcement for the half year ending 31st December 2008.

Conditions in the wider economic environment have been very difficult, with low confidence and lack of available credit hampering business and consumer spending. The Group's operations have not been immune from these issues which, combined with the effects of falling Sterling, have had a major effect on the overall first half performance.

However, clothing accessories and I.D. products within Thomas Walker UK Ltd and Thomas Walker SEA Ltd have achieved a satisfactory first half year with sales holding up well, although profitability has been adversely impacted by the weakness of Sterling. 

TW Stampings Ltd has been more affected by the economic slowdown in the short term with reduced order intake and a slow build up from new customers and products. In light of this environment, the Board has decided to delay the proposed investment in new CNC machining capacity. As a short term measure existing plant has been re-tasked to carry out the work on new products, for which some orders have already been received and for which the new plant is ultimately intended.

In the last few weeks new TW Stampings Ltd business has started to come through and at the close of the first half TW Stampings Ltd orders stand at £978,000 (2007: £687,000); this new business will have no effect on the first half but will impact the second half of this financial year and the following year.