/raid1/www/Hosts/bankrupt/TCREUR_Public/040426.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Monday, April 26, 2004, Vol. 5, No. 81

                            Headlines

F I N L A N D

METSO CORPORATION: Sets Interim Review Conference Call April 28


G E R M A N Y

JENOPTIK AG: Lower-than-expected Results Earn Ratings Downgrade


H U N G A R Y

NABI RT: Creditors Extend Maturity of US$91 Million Debt


I R E L A N D

JSG FUNDING: To Release First-quarter Results May 14


I T A L Y

PARMALAT CAPITAL: Prosecutors Unearth New Evidences
PARMALAT FINANZIARIA: Investors Question Mr. Bondi's Mandate


N E T H E R L A N D S

ROYAL DUTCH: Moody's Cuts Long-term Debt Ratings of Subsidiaries


N O R W A Y

DNO ASA: Acquires 4.1% Stake in Petrolia Drilling ASA


P O L A N D

KRAJOWA SPOLKA: Plan to Shut down Sugar Plants Abandoned


R U S S I A

BANK MENATEP: Long-term Rating Cut to 'CCC+'; Outlook Negative
BUILDING-CONSTRUCTIONS: Under Bankruptcy Supervision Procedure
ELECON+: Saint-Petersburg Court Appoints Insolvency Manager
ENTRANS: Bankruptcy Proceedings Begin
MENKOVSKAYA AGRICULTURAL: Deadline for Proofs of Claim May 8

PEREMYSHLSKY BREAD: Court Commences Bankruptcy Proceedings
RADIATOR: Insolvent Status Confirmed
SEYMSKY SUGAR: Bankruptcy Proceedings Start
SUE KRIVEZKY: Declared Insolvent
TATFLOT: Under Bankruptcy Supervision Procedure
VODOKANAL: Creditors Have Until June 8 to Submit Proofs of Claim


S W I T Z E R L A N D

VAN DER: Books EUR4.3 Million First-quarter Net Income


U K R A I N E

AGROTEHSERVIS: Declared Bankrupt
ELLADA: Exits Bankruptcy Proceedings
KASKAD 2001: Dnipropetrovsk Court Appoints Insolvency Manager
KIJ: Under Bankruptcy Supervision Procedure
SKOR: Declared Insolvent
VINNITSYA: Proofs of Claim Deadline May 16


U N I T E D   K I N G D O M

ABBEY NATIONAL: Returns to Profit at 'Group Statutory' Level
ACTION PACKED: Creditors Meeting May 5
ANSOLL INVESTMENTS: Winding up Resolutions Passed
ARC PROMOTIONS: Creditors to Meet April 29
A.R.T. INSULATION: Claims Deadline May 5

ASERA ENGINEERING: Meeting of Creditors Set May 5
BALTIMORE TECHNOLOGIES: Posts Audited 2003 Group Accounts
BLUSHING BRIDE: Creditors to Meet May 7
BT ALDER: Appoints Stoy Hayward Liquidator
CANARY WHARF: Songbird Nominates Derek Bonham as Chairman

CAPITAL STRATEGIES: Hires Liquidators from Grant Thornton
CARDDEAL LIMITED: Calls in Liquidator
CHARTERHOUSE WILLIS: Creditors Meeting Set April 30
CITYCHARM LIMITED: Appoints Administrative Receiver
CORPORATE CATERING: Meeting of Creditors Set May 4

CORUS GROUP: Returns to Operating Profit in First Quarter
ECO-BAT TECHNOLOGIES: Outlook Positive as Lead Market Improves
EUROTUNNEL PLC: French Ministry Supports Strategy
EUROTUNNEL PLC: Loses Chief Financial Officer
FORGE TECH: Names PricewaterhouseCoopers Administrator

GILLS COMPONENTS: Appoints Receivers from CBA
HILL & JACKSON: Creditors Meeting Set April 29
J W LIMITED: Appoints PwC Administrator
LEEDS UNITED: May Announce GBP20 Million New Funding Soon
MARCONI CORPORATION: Sales Slightly Down After U.S. Asset Sale

MAYFLOWER CORPORATION: Mayflower Energy Files for Administration
MERRICKS LLP: Hires Joint Administrators from Numerica
MIDSHIRES MEAT: Hires Receivers from Begbies Traynor
MOODY HALL: Winding up Special Resolutions Passed
MYFAST LIMITED: Names Critchleys Liquidator

PGS ENGINEERING: Appoints Moore Stephens Administrator
ROYAL DOULTON: Shareholders Re-elect Chairman Hamish Grossart
SILVERMINES EQUIPMENT: Appoints Liquidator from Critchleys
SOCIETY SCREEN: Hires Liquidator
SUPREME WINDOWS: Names Poppleton & Appleby Administrator
T.E.P. RETAIL: Appoints Moore Stephens Liquidator
WH SMITH: Senior Unsecured Rating Lowered to 'BB+'


                            *********


=============
F I N L A N D
=============


METSO CORPORATION: Sets Interim Review Conference Call April 28
---------------------------------------------------------------
Metso Corporation's Interim Review for January-March 2004 will
be published on Wednesday, April 28, 2004 at 1:00 p.m. Finnish
time.  A news conference will be held on the same day at Metso
Corporation's headquarters, Fabianinkatu 9 A, Helsinki, Finland
at around these times:

(a) 8:00 a.m. U.S. EST

(b) 1:00 p.m. GMT

(c) 2:00 p.m. CET

(d) 3:00 p.m. Finnish time

The news conference can be followed live via Internet at
http://www.metso.com

Conference call

You will be able to follow the news conference also in a
conference call to be arranged simultaneously.  Conference call
participants are requested to call these numbers a few minutes
prior to the start of the teleconference:

(a) U.S.: +1 334 420 4951

(b) Other countries: +44 (0) 20 7162 0197

A replay is available for 48 hours after the conference:

(a) U.S.: +1 334 323 6222 (access code: 839 932)

(b) Other countries: +44 (0) 20 8288 4459 (access code: 839
    932).

Interim Review presentation material is available before the
news conference at http://www.metso.com. You are most welcome
to participate in the news conference or the conference call.

Metso Corporation

Helena Aatinen
Senior Vice President, Corporate Communications

Eeva Makela
Manager, Investor Relations

                            *   *   *

Metso Corporation, whose corporate credit is rated 'BB+' by
Standard & Poor's, is a global supplier of process industry
machinery and systems, as well as know-how and aftermarket
services.  The Corporation's core businesses are fiber and paper
technology (Metso Paper), rock and mineral processing (Metso
Minerals) and automation and control technology (Metso
Automation).  In 2003, the net sales of Metso Corporation
reached EUR4.3 billion.  It has approximately 26,000 employees
in 50 countries.  Metso Corporation is listed on the Helsinki
and New York Stock Exchanges.

CONTACT:   METSO CORPORATION
           Eeva Makela,
           Manager, Investor Relations
           Phone: +358 204 843 253


=============
G E R M A N Y
=============


JENOPTIK AG: Lower-than-expected Results Earn Ratings Downgrade
---------------------------------------------------------------
Fitch Ratings downgraded Jenoptik AG's Senior Unsecured rating
to 'BB-' from 'BB' and placed it on Rating Watch Negative.  The
'BB' rating on Jenoptik's EUR150 million senior notes has also
been downgraded to 'BB-' and placed on Rating Watch Negative.
The rating actions follow the release of Jenoptik's preliminary
2003 financial results, which are well short of expectations and
which indicate a sharp increase in net total leverage.  Fitch
aims to resolve the Rating Watch in May 2004 following receipt
of audited 2003 accounts and a meeting with Jenoptik management.

Reported group EBIT was EUR7.9 million, down from Fitch-adjusted
EBIT of EUR21.5 million in 2002.  Clean Systems, the larger of
Jenoptik's two divisions, reported an increase in sales of
nearly 30% but only just reached break-even compared to the
EUR20.3 million reported profit seen in 2002.  The company did
not manage to benefit from the recovery in the semi-conductor
industry during the year.  Contracts taken on from other sectors
in Germany earned lower margins and some were loss-making.  The
smaller Photonics division reported a more modest sales gain of
5% but also suffered a reduction in profitability.  The reported
EBIT for the Photonics division of EUR26.6 million was down 4%
compared to 2002 and the margin fell to 9.5% from 10.3%.

The group order book stood at EUR2.51 billion at FYE03, up 4.8%.
The group states that the proportion of higher-margin
electronics contracts has increased since autumn 2003.
Following the significant decline in profitability in FY03,
Fitch estimates that net total leverage increased substantially
to above 3.0x.  A large proportion of debt is long-term
following the 2003 bond issue.  However, Fitch has no
information at this stage on the company's current liquidity
position.  Jenoptik will not be paying a dividend for 2003.

CONTACT:  FITCH RATINGS
          Sharon Westley, London
          Phone: +44 (0)20 7862 4025

          Monica Klingberg Insoll
          Phone: +44 (0)20 7417 4281

          Media Relations
          Alex Clelland, London
          Phone: +44 20 7862 4084


=============
H U N G A R Y
=============


NABI RT: Creditors Extend Maturity of US$91 Million Debt
--------------------------------------------------------
NABI Bus Industries Rt and its financiers have formally signed
the documents containing the terms of its debt restructuring.
Pursuant to the terms of the deal, NABI reduced its debt by
US$12 million in the first quarter of 2004.  It will further
improve its debt/equity ratio when it repays US$10 million of
its debt by end of 2004.  Approximately US$91 million was
reclassified as long-term debt maturing in 2006 and US$16
million remained as short-term debt.  As a result of the
negotiations, NABI's annual interest expenses increased in 2004
by only approximate 60 bp.

The financiers were granted collateral on part of the Group's
assets in addition to 1,713,000 warrants as part of the debt-
restructuring package.  The warrants' duration is December 2006
and the strike price is HUF1,087.  The agreement also includes
restrictions on dividend payments until 2006.

Because of the one-time costs of restructuring the Group's bank
debts and other related charges, NABI expects to post some
losses after taxes in 2004.  However, this represents a
significant improvement in the company's results compared with
2003.

Since last November NABI has been negotiating the restructuring
of its US$130 million debt.  The negotiations involved eight
Hungarian financial institutions, plus one American and one
British institutional lender.  Harmonizing the different legal
and business approaches and regulations involving organizations
and laws of four jurisdictions was a time-consuming exercise,
and was a process that took longer than originally anticipated.
Upon the completion of the transaction, Peter Rona, founding
chairman will retire from the NABI Group.

CONTACT:  NABI RT
          Andras Bodor Corporate Affairs Director
          Phone: +36.1.401.7100
          E-mail: andras.bodor@nabi.hu


=============
I R E L A N D
=============


JSG FUNDING: To Release First-quarter Results May 14
----------------------------------------------------
JSG Funding plc, incorporating Jefferson Smurfit Group, will
release 2004 first quarter results on Friday, May 14 at 12 p.m.
BST (7:00 a.m. EST).  The Jefferson Smurfit Group management
team will discuss fourth quarter financial performance with
investors during a conference call scheduled for 3:00 p.m. BST
(10:00 a.m. EST) on the same day.  The purpose of the call is to
provide investors and analysts with an overview of the financial
results, a perspective on product market conditions and progress
relative to corporate and financial objectives.

For more details, contact K Capital Source by phone: +353 1 631
5520 or by e-mail: smurfit@kcapitalsource.com

                            *   *   *

The Group reported a EUR19 million loss before tax in the fourth
quarter compared to a profit of EUR20 million in 2002.
Subsidiaries accounted for a loss of EUR21 million while
associates contributed a profit of EUR2 million, against profits
of EUR15 million and EUR5 million in 2002 respectively.  Full
year 2003 profit before tax of EUR12 million declined from
EUR236 million in 2002.  This decline mainly reflects the net
interest charges associated with the Group's leveraged capital
structure.

CONTACT:  JEFFERSON SMURFIT GROUP
          Phone: +353 1 202 7000
          or

          K CAPITAL SOURCE
          Phone: +353 1 631 5500
          E-mail: smurfit@kcapitalsource.com


=========
I T A L Y
=========


PARMALAT CAPITAL: Prosecutors Unearth New Evidences
---------------------------------------------------
The visit paid by Italian prosecutors to Malta more than a week
ago yielded new documents about Parmalat Capital Finance,
according to Malta Media News.

The report did not specify what these documents are, but said
they are presently with the Malta Financial Service Authority.
Citing judicial sources interviewed by Reuters, the paper said,
"PricewaterhouseCoopers who are consulting the proxy hope that
these documents will fill in the gaps in [Parmalat Capital's]
documentation."

Parmalat Capital Finance Ltd. is registered in the Cayman
Islands but maintains its fiscal office in Malta.  It is
controlled by Bonlat, the company allegedly used by the Italian
parent to divert funds.  According to reports, EUR600 million
out of the EUR2.5 billion in Parmalat's books were irregularly
transferred from Parmalat to the Maltese subsidiary between 1999
and 2003.  Both Bonlat and Parmalat Capital are subject of
liquidation petitions filed by Bank of America.  Malta has
repeatedly denied any link to the scandal.


PARMALAT FINANZIARIA: Investors Question Mr. Bondi's Mandate
------------------------------------------------------------
Two lawsuits are challenging the control of Parmalat
administrator Enrico Bondi over the Italian dairy group and its
subsidiary, Eurofood, Reuters says.

One case is pending in Rome, for which a trial has been
scheduled for June 10.  It questions Mr. Bondi's administration
of the group.  Another case, set for hearing on May 31, concerns
his control of Irish unit, Eurofood.

Parmalat filed for bankruptcy in December.  Italian authorities
then passed a fast-track insolvency procedure that appointed Mr.
Bondi as administrator.  Eurofood, Bank of America and Deminor,
a group representing two private French investors in Parmalat
bonds, are now challenging the legality of this new bankruptcy
procedure, which gave Mr. Bondi and Industry Minister Antonio
Marzano control of the company.  According to the report, the
aggrieved parties are seeking a fair say in the recovery of
missing funds and their distribution.

Meanwhile, the legal wrangle over Eurofood's jurisdiction
continues.   The first hearing will be on May 27, involving the
appeal filed by Parmalat in Dublin on the appointment of Pearse
Farrell as liquidator.  The other hearing on May 31 concerns
Pearse Farrell's appeal on a previous Parma ruling giving Italy
jurisdiction over Eurofood.

CONTACT:  PARMALAT FINANZIARIA
          Via Oreste Grassi, 26
          PR 43044 COLLECCHIO
          Phone: 39-05218081
          Fax: 39-0521808327
          Contact:
          Enrico Bondi, Administrator


=====================
N E T H E R L A N D S
=====================


ROYAL DUTCH: Moody's Cuts Long-term Debt Ratings of Subsidiaries
----------------------------------------------------------------
Moody's Investors Service downgraded the long-term debt ratings
of the guaranteed subsidiaries of the Royal Dutch/Shell Group of
companies to Aa1 from Aaa, acting on a rating review initiated
on January 9, 2004.

The ratings downgraded to Aa1 from Aaa include the securities of
Shell Finance (Netherlands) B.V. and Shell Finance (U.K.) PLC.
The Prime-1 guaranteed commercial paper ratings of both entities
are affirmed.  Also downgraded to Aa2 from Aa1 are the issuer
rating and certain long-term IRBs of Shell Oil Company, a wholly
owned subsidiary and holding company for the Group's U.S. based
operations; the global notes of Pennzoil-Quaker State to Aa3
from Aa2; and the preferred stock of Shell Frontier Oil & Gas to
A1 from Aa3.  All of the affected long-term ratings remain under
review for possible further downgrade.

The downgrades reflect the diminished prospects and positioning
of Royal Dutch/Shell's key upstream oil and gas operations
relative to its highly rated peer group, as well as the
organizational and cultural challenges manifested by the serious
breaches in executive level oversight and governance.  A weaker
fundamental upstream position is evidenced by the series of
large petroleum reserve re-categorizations announced since
January 2004.  Since that time, some 4.35 billion BOE reserves,
or more than 22% of the Group's proved reserves, have been "de-
booked" to bring its reporting practices in line with industry
convention and, importantly, in compliance with U.S. SEC
standards for proved reserves, which address the certainty and
timing in which reserves will be developed and produced.

The immediate financial and cash flow impacts of the de-bookings
are not substantial in relation to Royal Dutch/Shell's asset
base and financial position.  However, the competitive pressures
that drove senior management to book and report the hydrocarbons
as proved reserves over an extended period of reflect more
serious trends in declining reserve replacement, a shortening
reserve life index, and understated costs, than had been readily
apparent in the Group's internal exploration and development
efforts.

While the entire petroleum industry faces similar reserve
replacement and cost structure challenges, the results of the
independent investigation to the Group Audit Committee (GAC)
show that Royal Dutch/Shell took a more aggressive tack than its
peers to demonstrate reserve growth and the potential for rising
production in the face of large embedded production declines.

Equally important, the report to the GAC indicates a range of
reporting and oversight flaws inconsistent with a highly rated
entity, and raises major questions about Royal Dutch/Shell's
controls, reporting standards and corporate governance.  Royal
Dutch/Shell is taking significant and necessary remedial actions
to address these reporting and governance shortcomings.  While
these efforts could be effective, considerable time and effort
will be necessary to absorb the changes given the Group's dual
corporate and board structures and global operations, and to
enhance its credibility in the financial community.  Moreover,
efficient, low-cost replacement of large volumes of oil and
natural gas production will remain the Group's central
challenge.

The Aa1 long-term rating continues to be supported by Royal
Dutch/Shell's global scope and managerial depth, its strong base
level cash flow, its conservative balance sheet management, and
a roster of large long-term projects that should support reserve
replacement and production growth in the future.  However, in
the near-term Moody's is keeping the parent level and linked
ratings under review, pending the Group's publication of its
restated 2002 and 2003 financial statements and reserve
reporting.  The continuing review will focus on the restated
results, the magnitude of the changes resulting from the
restatement, and a comparative assessment of the restated
results including the Group's reserves and operating position
with its highest rated industry peers.  While other
uncertainties stem from the reserve re-categorization and
investigation, including remedial governance and control issues,
Moody's believes that in the absence of additional adverse
changes, the Aa1 long-term rating could potentially be confirmed
with a stable outlook.

Moody's notes that pending resolution of the Royal Dutch/Shell
and Shell Oil Company ratings, certain other ratings for Shell
Oil Company affiliates also remain under review.  These include
Motiva Enterprises LLC (A1/Prime-1), Deer Park Refining Limited
Partnership (A1/Prime-1) and Coral Energy Resources LLC (A1
Issuer Rating).

The Royal Dutch/Shell Group comprises one of the world's largest
integrated petroleum companies through the combined holdings of
Royal Dutch Petroleum and Shell Transport and Trading,
headquartered in The Hague and in London, England, respectively.

CONTACT:  Royal Dutch/Shell Group of Companies
          Carel van Bylandtlaan 30
          2596 HR The Hague, The Netherlands
          Phone: +31-70-377-9111
          Fax: +31-70-377-3115
          Web site: http://www.shell.com


===========
N O R W A Y
===========


DNO ASA: Acquires 4.1% Stake in Petrolia Drilling ASA
-----------------------------------------------------
Reference is made to the stock exchange notice concerning DNO's
subscription of shares in Petrolia Drilling ASA repair issue,
dated April 19, 2004.

The annual general meeting of Petrolia Drilling ASA on Wednesday
allotted DNO ASA and its subsidiary, Independent Oil Tools AS,
8,795,065 shares and 42,000,000 shares, respectively in Petrolia
Drilling ASA at a subscription price of NOK0.50 per share, the
total number of shares being 50,795,065.

After the allotment, DNO ASA and Independent Oil Tools AS hold
10,554,078 and 50,400,000 shares, respectively in Petrolia
Drilling ASA, in all 60,954,078 shares, corresponding to 4.1 and
19.5%, respectively of the share capital of Petrolia Drilling
ASA after the repair issue, in all 23.6%.

In addition, DNO ASA and Independent Oil Tools AS own rights to
shares in Petrolia Drilling ASA in the form of convertible bond
loans and independent subscription rights.  In aggregate, DNO
ASA and IOT's shares and rights represent between 45.5 and 83.4%
of Petrolia Drilling ASA's share capital after the repair issue,
depending on how many other holders of rights to shares in
Petrolia Drilling will make use of their rights to have shares
issued.

                            *   *   *

In November, Standard & Poor's Ratings Services placed its 'B'
corporate credit rating on DNO ASA on CreditWatch with
developing implications.  At the same time, Standard & Poor's
withdrew its senior unsecured rating on DNO's proposed US$175
million bond due to its cancellation.  The action follows DNO's
decision to sell two of its main operating subsidiaries, DNO
Britain Ltd. and Island Petroleum Developments Ltd., as well as
some of its operating assets in Norway.

"The placement on CreditWatch with developing implications
reflects current uncertainties over the company's medium-term
business strategy, growth prospects, and financial policy," said
Standard & Poor's credit analyst Eric Tanguy.  "It also reflects
our expectation that DNO may redefine its financial policy
toward lower debt leverage than is factored into the current
rating.  Failure to conclude the planned disposal before mid-
year 2004 may result in refinancing difficulties and would
likely result in the rating being lowered."

CONTACT:  VAN DER MOOLEN
          Helge Eide, Group Managing Director
          Phone: (+47) 55 22 47 00/(+47) 23 23 84 80
          Home Page: http://www.dno.no


===========
P O L A N D
===========


KRAJOWA SPOLKA: Plan to Shut down Sugar Plants Abandoned
--------------------------------------------------------
The government has decided to continue operating Sokolow and
Znin sugarplants, according to Warsaw Business Journal.  The
Senate's Agriculture Committee discussed the Polish Sugar
Industry's restructuring on Tuesday, and decided after a heated
debate to defer the closure of the plants this year.

"We need to take another close look at what the company can do
for those plants and their workers," said Jozef Wozniakowski,
deputy Treasury Minister.

Workers launched a hunger strike on Easter to protest the
closure of the plant.  This was after Krajowa Spolka Cukrowa, a
sugar holding, decided to close four sugar factories, located in
Sokolow, Borowiczki, Znin and Klemensow.

A report from the Web site of Polishmarket.com quoted Rajowa
Spolka Cukrowa's President Krzysztof Kowa saying: "Restructuring
is necessary if the company wishes to survive on the market in
the face of competition from Western sugar companies."

Krajowa Spolka Cukrowa was established in 2002 and remodeled
into a holding company of 22 plants last year.  It is the
largest producer of sugar in Poland, with a market share close
to 40%.


===========
R U S S I A
===========


BANK MENATEP: Long-term Rating Cut to 'CCC+'; Outlook Negative
--------------------------------------------------------------
Fitch Ratings downgraded the long-term rating of Russia's Bank
Menatep St. Petersburg to 'CCC+' from 'B-' and its Short-term
rating to 'C' from 'B'.  The Outlook for the long-term rating
remains Negative.

The rating actions reflect the agency's heightened concerns over
the potential impact of the escalating "Yukos affair,"
highlighted by the recent court order banning Russia's oil major
Yukos from selling assets pending the outcome of a US$3.5
billion tax claim against the company, on Bank Menatep's
reputation and financial standing.  Bank Menatep is ultimately
majority-owned by Group Menatep, which also holds a substantial
stake in Yukos.

Bank Menatep receives a substantial amount of funding from
Menatep Group companies, including Yukos, and Fitch believes the
worsening of Yukos' liquidity position could have a knock-on
effect on the stability of Bank Menatep's funding base and
liquidity.  The reputational impact of the deepening
Yukos/Menatep crisis could also result in further customer
attrition, including retail customers (25% of the bank's
customer funding base), whose funds have recently been showing
some signs of stabilizing after significant outflows in H203.

Bank Menatep's management has responded sensibly to the pressure
being experienced by the Menatep group, notably by boosting its
liquid resources in 2004: cash and inter-bank assets accounted
for over one-third of assets at end-Q104.  However, this,
together with a falling loan book, has negatively affected the
bank's net interest earnings and overall profitability in Q104.

Bank Menatep's business on both sides of the balance sheet is
concentrated and its capitalization, while improving due to a
combination of earnings retentions and a contracting balance
sheet, remains low by international standards.  These factors
limit Bank Menatep's ability to withstand significant shocks, to
which it has become more vulnerable, and are reflected in both
the bank's Long-term rating and Individual rating of 'D/E'.

MSPB was established in 1995 and a subsidiary of the Moscow-
based Bank Menatep until the collapse of its parent in the 1998
Russian financial crisis.  It is one of the 20 largest banks in
Russia by assets, providing mainly corporate and retail banking
services through a network of c.60 branches in Russia.

CONTACT:  FITCH RATINGS
          James Longsdon, London
          Phone: +44 20 7417 4309
          Vladlen Kuznetsov, Moscow
          Phone: +7 095 956 9901


BUILDING-CONSTRUCTIONS: Under Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Arbitration Court of Republic of Tatarstan commenced
bankruptcy supervision procedure on LLC Building-Constructions
Factory.  The case is docketed as A65-25883/2003-SG4-31.  Mr. V.
Petlin has been appointed temporary insolvency manager.

Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at: 420066, Russia, Republic of
Tatarstan, Kazan, Post user Box 188.  A hearing will take place
on June 3, 2004 at the Arbitration Court of Republic of
Tatarstan.

CONTACT:   Mr. V. Petlin, temporary insolvency manager
           420066, Russia, Republic of Tatarstan, Kazan,
           Post User Box 188


ELECON+: Saint-Petersburg Court Appoints Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Saint-Petersburg and Leningrad region
declared LLC ELECON+ insolvent and introduced bankruptcy
proceedings.   The case is docketed as A56-5342/04.  Mr. B.
Remnev has been appointed insolvency manager.  Creditors are
asked to submit their proofs of claim to the insolvency manager
at: 191036, Russia, Saint-Petersburg, Post User Box 44.

CONTACT:  ELECON+
          198095, Saint-Petersburg, Stachek prosp.4

          Mr. B. Remnev, insolvency manager
          191036, Russia, Saint-Petersburg, Post User Box 44


ENTRANS: Bankruptcy Proceedings Begin
-------------------------------------
The Arbitration Court of Saint-Petersburg and Leningrad region
declared Closed JSC Entrans insolvent and introduced bankruptcy
proceedings.   The case is docketed as A56-49520/03.  Mr. B.
Remnev has been appointed insolvency manager.  Creditors are
asked to submit their proofs of claim to the insolvency manager
at: 191036, Russia, Saint-Petersburg, Post User Box 44.

CONTACT:  ENTRANS
          193019, Saint-Petersburg, Knipovich str.9

          Mr. B. Remnev, insolvency manager
          191036, Russia, Saint-Petersburg, Post User Box 44


MENKOVSKAYA AGRICULTURAL: Deadline for Proofs of Claim May 8
------------------------------------------------------------
The Arbitration Court of Vladimir region commenced bankruptcy
supervision procedure on CJSC Menkovskaya Agricultural
Machinery.   The case is docketed as A11-522/2004-K1-15B.  Mr.
Y. Babkin has been appointed temporary insolvency manager.
Creditors have until May 8, 2004 to submit their proofs of claim
to the temporary insolvency manager at: 601780, Russia, Vladimir
region, Kolchugino, 3-Internazional str.67-24, Phone: (09245) 2-
38-31.

CONTACT:  MENKOVSKAYA AGRICULTURAL MACHINERY
          Russia, Vladimir region, Melenki

          Mr. Y. Babkin, temporary insolvency manager
          601780, Russia, Vladimir region, Kolchugino,
          3-Internazional str.67-24
          Phone: (09245) 2-38-31


PEREMYSHLSKY BREAD: Court Commences Bankruptcy Proceedings
----------------------------------------------------------
The Arbitration Court of Kaluga region declared Peremyshlsky
Bread-baking Complex insolvent and introduced bankruptcy
proceedings.  The case is docketed as A23-1991/03B-10-67.
Ms. V. Morozova has been appointed insolvency manager.
Creditors have until June 8, 2004 to submit their proofs of
claim to the insolvency manager at: 248003, Russia, Kaluga,
Tulskaya str.121-69, Phone: (0842) 73-76-21.

CONTACT:  PEREMYSHLSKY BREAD-BAKING COMPLEX
          249130, Russia, Kaluga region,
          Peremyshl, Lenin str.2

          Ms. V. Morozova, insolvency manager
          248003, Russia, Kaluga, Tulskaya str.121-69
          Phone: (0842) 73-76-21


RADIATOR: Insolvent Status Confirmed
------------------------------------
The Arbitration Court of Orenburg region declared OJSC Radiator
insolvent and introduced bankruptcy proceedings.  The case is
docketed as A47-14202/2003-14GK.  Mr. D. Mazurovsky has been
appointed insolvency manager.  Creditors have until May 8, 2004
to submit their proofs of claim to the insolvency manager at:
620000, Russia, Sverdlovsky region, Ekaterinburg, Post User Box
106.

CONTACT:  RADIATOR
          460000, Russia, Orenburg, Komsomolskaya str.175,

          Mr. D. Mazurovsky, insolvency manager
          620000, Russia, Sverdlovsky region, Ekaterinburg,
          Post User Box 106


SEYMSKY SUGAR: Bankruptcy Proceedings Start
-------------------------------------------
The Arbitration Court of Kursk region declared LLC Seymsky Sugar
Combine insolvent and introduced bankruptcy proceedings.  The
case is docketed as A35-7438/03.  Mr. A. Fomin has been
appointed insolvency manager.  Creditors are asked to submit
their proofs of claim to the insolvency manager at: 125167,
Russia, Moscow, Planetnaya str.29, build 1.

CONTACT:  SEYMSKY SUGAR COMBINE
          307024, Russia, Kursk region, Manturovsky district,
          Seym, Proletarskaya 2

          Mr. A. Fomin, insolvency manager
          125167, Russia, Moscow, Planetnaya str.29, build 1


SUE KRIVEZKY: Declared Insolvent
--------------------------------
The Arbitration Court of Kursk region declared Sue Krivezky
Sugar Combine insolvent and introduced bankruptcy proceedings.
The case is docketed as A35-7439/03.  Mr. A. Fomin has been
appointed insolvency manager.  Creditors are asked to submit
their proofs of claim to the insolvency manager at: 125167,
Russia, Moscow, Planetnaya str.29, build 1.

CONTACT:  Mr. A. Fomin, insolvency manager
          125167, Russia, Moscow, Planetnaya str.29, build 1


TATFLOT: Under Bankruptcy Supervision Procedure
-----------------------------------------------
The Arbitration Court of Republic of Tatarstan commenced
bankruptcy supervision procedure on shipping company OJSC
Tatflot.  The case is docketed as A65-4645/2004-SG4-16.  Mr. S.
Kondratyev has been appointed temporary insolvency manager.

Creditors are asked to submit their proofs of claim to the
temporary insolvency manager: 420126, Russia, Republic of
Tatarstan, Kazan, Post user Box 188.  A hearing will take place
on September 07, 2004 at the Arbitration Court of Republic of
Tatarstan.

CONTACT:  TATFLOT
          Russia, Republic of Tatarstan, Kazan, Portovaya street

          Mr. V. Petlin, temporary insolvency manager
          420126, Russia, Republic of Tatarstan, Kazan,
          Post User Box 188


VODOKANAL: Creditors Have Until June 8 to Submit Proofs of Claim
----------------------------------------------------------------
The Arbitration Court of Nizhny-Novgorod region declared
municipal enterprise Vodokanal insolvent and introduced
bankruptcy proceedings.  The case is docketed as A43-12113/03-
18-41.  Mr. I. Korostylev has been appointed insolvency manager.
Creditors have until June 8, 2004 to submit their proofs of
claim to the insolvency manager at: 603050, Russia, Nizhny-
Novgorod region, GSP-1152, Kerchenskaya str.15, Fax: (8312) 58-
37-54.

CONTACT:  VODOKANAL
          603950, Russia, Nizhny-Novgorod region, GSP-1152,
          Kerchenskaya str.15,
          Fax: (8312) 58-37-54

          Mr. I. Korostylev, insolvency manager
          603050, Russia, Nizhny-Novgorod region, GSP-1152,
          Kerchenskaya str.15,
          Fax: (8312) 58-37-54


=====================
S W I T Z E R L A N D
=====================


VAN DER: Books EUR4.3 Million First-quarter Net Income
------------------------------------------------------
Van der Moolen (NYSE:VDM)(AEX:VDMN) reports EUR4.3 million net
income from ordinary activities before exceptional NYSE/SEC
provision of net EUR1.6 million for the first quarter of 2004.
These are the highlights (compared with fourth quarter 2003):

(a) Organic revenue growth 15%, including 11% at VDM
    Specialists;

(b) Improved underlying operating performance;

(c) Solvency rose from 27% at year-end to 36% on March 31, 2004;

(d) Significant repayment on credit facilities.  As of today
    EUR24.1 million is drawn under facilities (December 31,
    2003: EUR36.3 million).

Van der Moolen earned net income from ordinary activities of
EUR4.3 million in the first quarter of 2004, before an
exceptional NYSE/SEC provision.  Net income, which includes a
charge of EUR1.6 million after minority interest to fund the
remainder of the provision for settlement with the NYSE and U.S.
SEC that was not provided for in our December 31, 2003 accounts,
was EUR2.7 million, or EUR0.05 per common share.  An amount of
approximately EUR1.8 million for professional fees is included
in the first quarter results relating to the NYSE/SEC
investigation.

Net income from ordinary activities -- excluding impairment of
fixed assets taken in the fourth quarter of 2003 and exceptional
provisioning for the NYSE/SEC settlement in both the fourth
quarter of 2003 and the first quarter of 2004 -- declined by
22%, from EUR5.5 million in the fourth quarter of 2003 to EUR4.3
million.  Net income from ordinary activities before the
exceptional NYSE/SEC provision was 46% below the EUR7.9 million
achieved in the first quarter of 2003.

Van der Moolen was able to close all (100%) of its 64 trading
days in the first quarter with a trading profit.  Our NYSE
participation rate was 25.3%, compared to 26.0% in the fourth
quarter of 2003 and 31.7% in the first quarter last year.  Our
realization rates were 3.0, 3.0 and 4.2 basis points,
respectively.

F.M.J. (Fred) Boettcher, CEO of Van der Moolen, commented, "A
lot of factors affect our first quarter report.  The effects of
recent sales or closures of business units, provisioning for the
remainder of the NYSE/SEC settlement, higher professional fees,
the resumption of normal bonus accruals all complicate the
picture.  Stripping these out, we witnessed a moderate
improvement in underlying operating performance compared to the
fourth quarter of 2003.  Although these results are by no means
as healthy as we would like, we think we have made a positive
start to 2004.  Furthermore we improved our financial condition,
with our solvency rising to 36% on March 31, 2004."

A copy of these results is available free of charge at
http://bankrupt.com/misc/Vande_Q12004.htm

CONTACT:  VAN DER MOOLEN
          Investor Relations/Corporate Communications
          Phone: +31 (0)20 535 6789


=============
U K R A I N E
=============


AGROTEHSERVIS: Declared Bankrupt
--------------------------------
The Economic Court of Zaporizhya region declared OJSC Zaporizhya
Enterprise Agrotehservis (code EDRPOU 03742328) insolvent and
introduced bankruptcy proceedings on March 31, 2004.  The case
is docketed as 21/66.   Mrs. Kretova O. A. (license holder
487803 approved April 24, 2003) has been appointed
liquidator/insolvency manager.

CONTACT:  AGROTEHSERVIS
          Juriditial address: 69089, Ukraine, Zaporizhya,
          Sonyachne Shosse str., 2

          Mrs. Kretova O. A., Liquidator/Insolvency Manager
          69006, Ukraine, Zaporizhya, a/b # 123
          Phone: 8 (067) 614-47-49 or 8 (0612) 13-32-14

          ECONOMIC COURT OF ZAPORIZHYA REGION
          69001, Ukraine, Zaporizhya, Shaumyana str., 4


ELLADA: Exits Bankruptcy Proceedings
------------------------------------
The Economic Court of Zaporizhya region finished bankruptcy
proceedings on LLC Ellada (code EDRPOU 22118618) and started the
Common Court Procedure on March 29, 2004.  The case is docketed
as 19/14.   Mr. Kirichenko Viktor Petrovich, holder of license
AA 047730 approved September 12, 2001, has been appointed
temporary insolvency manager.

Creditors have until May 16, 2004 to submit their proofs of
claim.  Ellada maintains this account number, 26000301246279,
with the Prominvestbank of Zaporizhya, Shevchenko branch, MFO
313322.

CONTACT:  ELLADA
          69054, Ukraine, Zaporizhya, Lenin avenue, 117a

          Mr. Kirichenko Viktor Petrovich,
          Temporary insolvency manager
          Phone: (0612) 34-76-11 or 34-30-19

          ECONOMIC COURT OF ZAPORIZHYA REGION
          69001, Ukraine, Zaporizhya, Shaumyana str., 4


KASKAD 2001: Dnipropetrovsk Court Appoints Insolvency Manager
-------------------------------------------------------------
The Economic Court of Dnipropetrovsk region declared LLC Kaskad
2001 (code EDRPOU 31313460) insolvent and introduced bankruptcy
proceedings on March 30, 2004.  The case is docketed as
B29/45/04.  Mr. Yasnogor Igor Vjacheslavovich (license holder AA
630052) has been appointed liquidator/insolvency manager.

Kaskad holds account number, 26009115578001, with CB Privatbank,
MFO 305299.

CONTACT:  KASKAD 2001
          49089, Ukraine, Dnipropetrovsk,
          Fabrichna-Zavodska str., 25/14

          Mr. Yasnogor Igor, Liquidator/Insolvency Manager
          49040, Ukraine, Dnipropetrovsk, a/b # 2350
          Phone/Fax: (0562) 31-82-12

          ECONOMIC COURT OF SUMI REGION
          40477 Ukraine, Sumi, Ribalko str., 2


KIJ: Under Bankruptcy Supervision Procedure
-------------------------------------------
The Economic Court of Kyiv commenced bankruptcy supervision
procedure on LLC production-commercial company, Kij (code EDRPOU
21622823).  The case is docketed as 23/155-6.  Mr. Kapilushnij
Igor Viktorovich, holder of license AA 249639 approved October
19, 2001, has been appointed temporary insolvency manager.

Creditors have until May 16, 2004 to submit their proofs of
claim.  Kij holds account number, 2600777, with PKF APPB Aval of
Kyiv branch, MFO 322506.

CONTACT:  KIJ
          03124, Ukraine, Kyiv, Vasilenko str., 8/122

          Mr. Kapilushnij Igor Viktorovich,
          temporary insolvency manager
          03037, Ukraine, Kyiv, a/b 53

          ECONOMIC COURT OF KYIV
          01030, Ukraine, Kyiv, B. Hmelnitski str., 44b


SKOR: Declared Insolvent
------------------------
The Economic Court of Poltava region declared building company,
SKOR (code EDRPOU 13943235), insolvent and introduced bankruptcy
proceedings on February 5, 2004.  The case is docketed as 8/564-
10-144a.  Mr. Bonchak Stepan Antonovich (license 250145 approved
December 5, 2001) has been appointed liquidator/insolvency
manager.  Skor holds account number, 260059801171, with JSCB USB
of Kremenchug, MFO 331348.

CONTACT:  SKOR
          39600, Ukraine, Poltava region, Kremenchug,
          Naberezhna Lejtenanta Dniprova str., 52/37

          Mr. Bonchak Stepan Antonovich,
          Liquidator/insolvency manager
          39600, Ukraine, Kremenchug, 50 years USSR str., 17/5

          ECONOMIC COURT OF POLTAVA REGION
          36000, Ukraine, Poltava, Zigina str., 1


VINNITSYA: Proofs of Claim Deadline May 16
------------------------------------------
The Arbitration Court of Vinnitsya region declared LLC football
club, Vinnitsya (code EDRPOU 30362585), insolvent and introduced
bankruptcy proceedings on March 30, 2004.  The case is docketed
as 5/552-03.  Mr. Boyko Oleg Vasilyovich (license holder A249518
approved December 15, 2001) has been appointed
liquidator/insolvency manager.  Creditors have until May 16,
2004 to submit their proofs of claim at: 21050, Vinnitsya,
Arhitektor Artinov str., 51/2.  Phone: 35-63-98.

CONTACT:  VINNITSYA
          21001, Ukraine, Vinnitsya, 50th Anniversary of
          Victory str., 16

          ECONOMIC COURT OF VINNITSYA REGION
          21100, Ukraine, Vinnitsya, Hmelnitske Shosse str., 7


===========================
U N I T E D   K I N G D O M
===========================


ABBEY NATIONAL: Returns to Profit at 'Group Statutory' Level
------------------------------------------------------------
This statement provides a summary of business and financial
trends up to March 31, 2004.  Unless otherwise stated, the
statement relates to the 3 months to end March, compared to a
pro-rata equivalent of second half 2003 (e.g. PFS trading profit
before tax of GBP433 million divided by 2).

Summary

"We are making good progress and the restructuring efforts
remain on schedule 14 months into our 3-year plan.  It is tough
work and is inevitably having some negative impact on current
trading.  We continue to drive the business hard as we push on
with our plans.  We believe that the huge changes we are making
across the entire company will start to have a positive impact
from the second half of the year," says CEO Luqman Arnold.

Financial highlights from the statement include:

(a) return to profit at a Group statutory level, representing a
    sharp recovery from the losses of 2002 and 2003, as a result
    of lower PBU and PFS charges;

(b) PFS trading profit before tax in the first quarter, slightly
    lower than a pro-rata equivalent of second half 2003
    reflecting the anticipated reduction in net interest margin,
    largely offset by lower expenses and the non-recurrence of
    the product mis-selling provision of GBP50 million;

(c) a further 17% reduction in Portfolio Business Unit (PBU)
    assets since December 2003 to GBP10.2 billion from GBP12.3
    billion, with risk weighted assets falling by 13%, and
    disposals made across most asset classes.

    Exit costs in the debt securities and loan portfolios have
    been consistent with mark-to-market disclosures made at the
    year-end.  The PBU achieved a small profit before tax in the
    first quarter;

(d) gross mortgage lending of GBP6.7 billion, ahead of the same
    period last year and equivalent to a 10.1% estimated market
    share, broadly consistent with recent performance.  Net
    lending of GBP2.1 billion was down 16%, due to increased
    capital repayments (consistent with overall market trends);

(e) the first quarter performance across other product areas was
    mixed.

    Given the disruption from change currently being effected
    around the business, progress was satisfactory in some
    areas, such as unsecured personal loans and protection, but
    below our future aspirations in others, such as savings and
    investments; and

(f) PFS credit quality remains very strong with no evidence of
    deterioration.

The first half PFS Banking spread is likely to be around 160
basis points (2003 Half 2: 1.75%), primarily reflecting the
expected reduction in asset spread.  The decline in the second
half of 2004 is expected to slow materially, as described
herein.

Despite the restructuring being on schedule, the outlook for
Abbey's PFS trading profit is moderately weaker than originally
expected reflecting year to date results below our forecasts.
Business results are expected to improve during the year as the
planned turnaround becomes more visible.  Nevertheless, we
remain appropriately cautious given the early stage in the year,
the challenge of reversing revenue trends in the second half of
the year, and the potential for unforeseen volatility in some
parts of the life assurance and treasury businesses.

The equity tier 1 ratio has improved slightly since the year-
end, in line with the profitability trends given, and the
continued success in winding down the PBU.  Progress continues
to be made to finalize the impact on Abbey of the Life
companies' realistic balance sheets and related matters, with
much greater clarity anticipated by the time of the Interims.

In terms of the PFS transformation program, we have continued to
make good progress in the first quarter, including:

(a) announcing the closure of a further 3 operational sites,
    bringing the total to 10, as we move work from smaller sites
    to larger centers;

(b) successfully transitioning all equity and bond funds
    previously managed by Abbey National Asset Managers to State
    Street Global Advisers at the end of January 2004.  Five of
    our larger retail funds have moved into the multi manager
    environment in April and we plan to rationalize the existing
    fund range on offer, removing complexity for customers;

(c) further progress in the pilot of our advice model for
    savings and investments;

(d) over 10,500 staff now actively using the new customer
    relationship management system, up from 8,000 at the year-
    end, with 12,000 staff expected to be online by September;

(e) making progress in re-writing customer letters in plain,
    everyday language, with the total re-written now almost
    2,500, covering well over half of our correspondence.  We
    expect to have completed the re-write exercise by June;

(f) launching a successful 'managing your borrowing' campaign,
    talking to customers about their borrowing needs in the
    round.  This led to an increase in branch originated
    unsecured loan business compared to the same point last
    year;

(g) a further improvement to our mortgage range, with the launch
    of a new specialist unit to handle large loans, the
    introduction of a new 15 year fixed rate mortgage, and our
    innovative new reward mortgage;

(h) a range of initiatives launched this month to support new
    savings business including the re-pricing and promotion of
    Flexible Saver, and the promotion of multi-manager
    commencing; and

(i) the re-branding of branch fascias, with c.400 completed to
    date.  We will have launched trials of new branch and cash
    machine formats by the time we report our interim results,
    marking the beginning of a five-year branch refurbishment
    program.  In addition, our new Branch Distribution Director
    is now in place, marking another important step in
    strengthening our branch performance.

Despite the scale of change and disruption to the business,
customer satisfaction scores remain steady in the middle of the
range of our peer group.

There is still much work to do, including systems enhancements
in general insurance and unsecured personal lending.
Nevertheless, by the second half of this year, we aim to be
materially closer to our goal of having the right people, in the
right places, with the right tools to meet the needs of our
customers better.  In addition, the burden of change that our
people have been asked to cope with in recent months should be
declining, allowing them more time to focus on serving our
customers and driving business growth.

Personal Financial Services - Financial Update

PFS trading profit before tax for the 3 months to the end of
March was slightly lower than a pro-rata equivalent of second
half 2003 earnings.

By profit & loss line, the main highlights include:

(a) a reduction in trading income, primarily due to lower net
    interest income in Banking and Savings as anticipated;

(b) the PFS Banking spread expected to be around 1.60% for the
    half year.

    Spread narrowing is expected to slow materially in the
    second half, reflecting stable SVR margins, an element of
    liability margin widening, and the higher mortgage new
    business and retention margins now being achieved.  This
    should allow Banking and Savings net interest income to
    stabilize and potentially improve in that period;

(c) the largest element of the first half spread reduction is on
    the asset side, reflecting a full period impact of SVR re-
    alignment completed in November 2003, and lower redemption
    fee income due to lower levels of early redemptions given
    rising interest rates, and lower average fees.

    In addition, there is a smaller proportion of the book on
    SVR following recent periods of new business growth and an
    increased proportion of customers maturing to lower margin
    non-SVR products at the end of their incentive period.  As
    at the end of March, the proportion of the mortgage book on
    free-to-go SVR stood at c.15%, compared to 18% at December
    2003.

    The liability spread has been comparatively stable with the
    cost of funding asset growth from wholesale sources offset
    by deposit margin actions;

(d) Investment and Protection trading income in line with the
    half 2 2003 run-rate, before the potential impact of any
    current year experience variances in the life businesses,
    which are reviewed semi-annually.  The first quarter result
    does include reductions in "expected return" as a result of
    lower embedded value balances, discount rate and projected
    investment returns (following the move to an "active
    embedded value basis" at the 2003 year end).  Higher
    protection and investment sales are targeted as the year
    progresses;

(e) higher trading income in Treasury Services(1), benefiting
    from a favorable trading environment and normal seasonal
    trends;

(f) Group Infrastructure trading income in line with the second
    half 2003 run-rate.  The adverse impact on net interest
    income of maturing interest rate hedges, protecting earnings
    on the Group's capital, has been allocated to the business
    lines, and therefore negatively impacts margin and net
    interest income in these segments;

(g) trading costs are lower than the second half 2003 run-rate
    and consistent with cost guidance for the year as a whole.
    Underlying inflation and investment spend continues to be
    offset by cost savings; and

(h) total trading provisions materially better than the second
    half run-rate, benefiting from the non-recurrence of the
    product provision raised in December 2003.  We remain
    comfortable with credit quality, with a further 12%
    reduction in 3 month+ arrears cases to 7,200 and properties
    in possession falling to 291.

Mortgage credit quality             March 2004 December 2003
3 month+ mortgage arrears (cases)       7,200      8,200
Properties in Possession (cases)          291        325
New Business:
(a) % First Time Buyers                     19%        17%
(b) LTV > 90%                                8%         9%
(c) Average LTV (on new business)           57%        57%

PFS non-trading items reported at the Interims will include any
life assurance items relating to investment variances and the
finalization of the 'realistic balance sheets' and related
matters.  In addition for the full year, implementation costs
relating to the restructuring program are expected to be lower
than in 2003, reflecting the non-recurrence of material asset
write downs, offset by increased costs in relation to the
ongoing cost program and mandatory regulatory change projects.

(1) In our 2004 reporting, all of the short-term market
    portfolios are being moved to a mark to market accounting
    basis.  In doing so, this switches income from net interest
    to non-interest income, and will mean that substantially all
    of Treasury Services income from 2004 will be reported as
    non-interest income

Personal Financial Services - New Business update

                           3 months to 3 months to 3 months to
                           Mar 2004   Mar 2003     Dec 2003
Banking and Savings

Gross mortgage lending    GBP6.7bn    GBP6.5bn      GBP8.2bn
Capital repayments        GBP4.6bn    GBP4.0bn      GBP5.2bn
Net mortgage lending      GBP2.1bn    GBP2.5bn      GBP3.0bn

Market share - gross mortgage lending (estimate)
                           10.1%       11.4%          10.7%
Market share - net mortgage lending (estimate)
                            9.2%       12.6%          10.9%
Total net deposit flows    GBP(1.2)bn  GBP0.9bn     GBP0.3bn

Bank account openings       99,000      117,000       80,000

Gross unsecured personal loan lending
                          GBP0.7bn     GBP0.4bn     GBP0.4bn

Credit card openings        40,000      78,000        46,000

Investment Sales

Investment - annualized equivalent
                            GBP26m     GBP47m         GBP43m

Insurance Sales

Protection - annualized equivalent
                            GBP31m     GBP32m         GBP33m

General Insurance new policy sales
                            93,000     104,000       114,000


New business highlights for the 3 months to March include:

(a) gross mortgage lending of GBP6.7 billion slightly ahead of
    last year (March 2003: GBP6.5 billion).  The estimated share
    of capital repayments was slightly lower than the equivalent
    period last year despite a widening of margins on retention
    products, but at GBP4.6 billion was up in absolute terms,
    reflecting the size of the market.  As a result, net
    mortgage lending was lower at GBP2.1 billion (March 2003:
    GBP2.5 billion), representing an estimated market share of
    9.2%.  New business volumes have remained robust despite a
    10 basis point increase in new business pricing;

(b) deposit outflows of GBP1.2 billion which are unsatisfactory.
    Of this, approximately 1/3 relates to Abbey branded
    household liability, largely driven by less profitable
    accounts.  The balance of the outflow elates to Abbey
    Business, Cater Allen and Offshore banking operations.  The
    repayment of GBP50 billion of PBU wholesale funding has
    provided greater freedom to compete less aggressively for
    negative margin new deposit business, which has influenced
    the headline figures.  We expect to see improvement in
    underlying flows through the remainder of the year;

(c) robust bank account openings consistent with the 2003 half 2
    run-rate, and strong unsecured personal loan growth, mostly
    through cahoot;

(d) annualized investment sales of GBP26 million in the quarter
    were poor, and weaker than expected.  The business is
    currently being completely re-engineered, and has suffered
    from an adverse reaction to with-profit bonus news flow.
    Improving trends are targeted in the latter part of 2004 and
    in 2005, as the benefits of the re-engineering process begin
    to bear fruit; and

(e) protection sales of GBP31 million consistent with 2003
    levels but benefiting from improved margins and with a
    sustained strong market share of the IFA channel.

Portfolio Business Unit
                               March 2004  December 2003
                                 Assets      Assets
                                 GBP bn      GBP bn
Debt securities                   0.7         1.0
Loan portfolio                    1.7         2.0
Leasing businesses                4.3         4.7
Private Equity                    0.1         0.4
Other                             0.2         0.2
Wholesale Banking exit portfolios 7.0         8.3

First National                    1.7         2.1
European Banking and other        1.5         1.9
Total PBU assets [1]             10.2        12.3

[1] Excludes the net assets of the international life assurance
businesses.

PBU assets have been reduced by 17% since the year-end, down
from GBP12.3 billion to GBP10.2 billion.  There have been some
notable areas of progress, namely aircraft ABS where exposures
have been reduced to nil, and private equity where all assets,
except for deferred consideration and GBP57 million of residual
position, have been sold.  In total, sub-investment grade
exposures stood at GBP0.9 billion compared to GBP1.3 billion in
December 2003, comprising mainly of asset finance lending.  In
March, we announced the completion of sale of Royal Saint
Georges Banque to GE Capital Bank France.

Losses on sale to date have been broadly consistent with the
provisioning and mark to market disclosures included in the 2003
full year results announcement.

There has been no material change in credit quality of the
remaining PBU assets during the quarter.  The PBU achieved a
small profit in the first quarter.

However, for the remainder of 2004, a loss for the PBU is
probable reflecting further wind down costs, provisions and
losses on asset disposals, albeit at a level substantially lower
than in 2003.

Future diary dates

2004 Interim Results 29th July 2004

2004 Q3 Trading Statement 27th October 2004

Important notice

This announcement should be read in conjunction with the Full
Year Results release for the year ended December 31st 2003,
released on February 26th 2004.

CONTACT:  ABBEY NATIONAL
          Thomas Coops (Communications Director)
          Phone: 020 7756 5536

          Jon Burgess (Head of Investor Relations)
          Phone: 020 7756 4182

          Matthew Young (Media Relations)
          Phone: 020 7756 4232

          E-mail: investor@abbey.com


ACTION PACKED: Creditors Meeting May 5
--------------------------------------
There will be a Creditors Meeting of the Action Packed
Entertainment Limited Company on May 5, 2004 at 10:30 a.m.  It
will be held at Taylor Rowlands, 8 High Street, Yarn, Stockton
on Tees TS15 9AE.

A list of names and addresses of the Creditors will be available
for inspection free of charge at the offices of Taylor Rowlands,
8 High Steet, Yarn, Stockton on Tees TS15 9AE at 10:00 a.m. and
4:00 p.m. on May 3 and 4, 2004.

CONTACT:  TAYLOR ROWLANDS
          8 High Street, Yarn,
          Stockton on Tees TS15 9AE


ANSOLL INVESTMENTS: Winding up Resolutions Passed
-------------------------------------------------
At an Extraordinary General Meeting of the Members of the Ansoll
Investments Limited Company on March 29, 2004 held at 22
Grenville Street, St Helier, Jersey, the Special, Ordinary and
Extraordinary Resolutions to wind up the Company were passed.
Peter John Robertson Souster and Ross David Cannock of Baker
Tilly, Spectrum House, 20-26 Cursitor Street, London EC4A 1HY
have been appointed Joint Liquidators for the purpose of such
winding-up.

CONTACT:  BAKER TILLY
          Spectrum House
          20-26 Cursitor Street,
          London EC4A 1HY
          Contact:
          Peter John Robertson Souster, Liquidator
          Ross David Cannock, Liquidator


ARC PROMOTIONS: Creditors to Meet April 29
------------------------------------------
There will be a Creditors Meeting of the ARC Promotions Limited
Company on April 29, 2004 at 11:30 a.m.  It will be held at the
offices of Begbies Traynor, 1 Winckley Court, Chapel Street,
Preston, Lancashire PR1 8BU.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to 1 Winckley Court, Chapel Street, Preston,
Lancashire PR1 8BU not later than 12:00 noon, April 28, 2004.

A list of names and addresses of the Creditors may be inspected
free of charge from 10:00 a.m. and 4:00 p.m. at Begbies Traynor,
1 Winckley Court, Chapel Street, Preston, Lancashire PR1 8BU on
April 27 and 28, 2004.  By Order of the Board.

CONTACT:  BEGBIES TRAYNOR
          1 Winckley Court
          Chapel Street, Preston
          Lancashire PR1 8BU


A.R.T. INSULATION: Claims Deadline May 5
----------------------------------------
Pursuant to section 98 of the Insolvency Act 1986, a Creditors
Meeting of the A.R.T. Insulation Co. Ltd will be on May 6, 2004
at 10:30 a.m.  It will be held at the offices of Bennett Verby,
7 St Petersgate, Stockport, Cheshire SK1 1EB.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to 7 St Petersgate, Stockport, Cheshire SK1 1EB not
later than 12:00 noon, May 5, 2004.

A list of names and addresses of the Creditors may be inspected
free of charge at 7 St Petersgate, Stockport, Cheshire SK1 1EB
at 10:00 a.m. and 4:00 p.m. on May 4 and 5, 2004.

Address:  7 St Petersgate
          Stockport, Cheshire SK1 1EB


ASERA ENGINEERING: Meeting of Creditors Set May 5
-------------------------------------------------
Pursuant to section 98 of the Insolvency Act 1986, a Creditors
Meeting of the Asera Engineering Solutions Limited Company will
be on May 5, 2004 at 11:00 a.m.  It will be held at 129 New
London Road, Chelmsford, Essex CM2 0QT.

A list of names and addresses of the Company's Creditors will be
available for inspection free of charge at 129 New London Road,
Chelmsford, Essex CM2 0QT on May 3 and 4, 2004.  By Order of the
Board.

Address:  129 New London Road,
          Chelmsford, Essex CM2 0QT


BALTIMORE TECHNOLOGIES: Posts Audited 2003 Group Accounts
---------------------------------------------------------
Baltimore Technologies (London: BLM) posted its audited 2003
Report and Accounts to all shareholders.

David Weaver, Chief Executive of Baltimore said:

"With the filing and posting of Baltimore's audited 2003
Accounts, I believe our shareholders will now acknowledge that
Acquisitor's cynical position that it needs to obtain control of
the Company in order to ascertain Baltimore's financial position
before it unveils its plans, if it indeed it has any, is nothing
but a smokescreen.

"As Acquisitor knows, Baltimore has no operating business.  All
remaining liabilities and assets are clearly accounted for in
the report and accounts, which has been fully audited by KPMG
and filed with the U.S. SEC.  In addition, we have addressed all
relevant questions raised by Acquisitor with reference to
information contained in these and previously published accounts
and other public documents.  Contrary to Acquisitor's inaccurate
and ill researched statements regarding Baltimore, Baltimore's
finances could not be more transparent.

"Acquisitor has been described as a Vulture Fund.  We believe
this description is reflected in its cynical and opportunistic
attempt to seize control of Baltimore's assets when, by its own
admission, it has no strategic plan for the future and no
permanent management team.  We have found no substantive
evidence and explanation of its claimed track record in building
businesses.

"By contrast we have laid out an actionable strategy and have
put in place a world class management team to implement it.
This will see Baltimore operating in the European mid-sized
business market for clean energy solutions, which is expected to
grow significantly in the medium term.

"I urge shareholders to back our strategy which comprises a real
plan for profitable growth in an exciting industry under a
management team with a proven track record."

About Baltimore Technologies

Following the completion of the disposal of Baltimore
Technologies' core PKI business on 2 December 2003, the
continuing Group's assets consist primarily of cash.
Home Page: http://www.baltimore.com

CONTACT:  SMITHFIELD
          Phone: +44 (0) 207 360 4900

          Andrew Hey
          Phone: +44 (0) 7836 276 068
          Nick Bastin
          Phone: +44 (0) 7931 500 066
          Will Swan
          Phone: +44 (0) 7787 197 508


BLUSHING BRIDE: Creditors to Meet May 7
---------------------------------------
There will be a Creditors Meeting of the Blushing Bride Limited
Company on May 7, 2004 at 4:00 p.m.  It will be held at the
offices of Valentine & Co., 4 Dancastle Court, 14 Arcadia
Avenue, London N3 2HS.

A list of names and addresses of the Creditors may be inspected
free of charge at 4 Dancastle Court, 14 Arcadia Avenue, London
N3 2HS at 10:00 a.m. and 4:00 p.m. on May 5 and 6, 2004.

CONTACT:  VALENTINE & CO
          4 Dancastle Court,
          14 Arcadia Avenue, London N3 2HS


BT ALDER: Appoints Stoy Hayward Liquidator
------------------------------------------
At an Extraordinary General Meeting of the BT Alder One Limited
Company on March 31, 2004 held at BT Centre, 81 Newgate Street,
London EC1A 7AJ, the subjoined Special Resolution to wind up the
Company was passed.  Malcolm Cohen of BDO Stoy Hayward LLP, 8
Baker Street, London W1U 3LL has been appointed Liquidator for
the purpose of such winding-up.

CONTACT:  BDO STOY HAYWARD LLP
          8 Baker Street,
          London W1U 3LL
          Contact:
          Malcolm Cohen, Liquidator


CANARY WHARF: Songbird Nominates Derek Bonham as Chairman
---------------------------------------------------------
Songbird Estates plc is pleased to announce the proposed
appointment of Derek Bonham to the board of directors of
Songbird Estates as Chairman and the Independent Director.

His appointment will become effective following completion of
the acquisition of Canary Wharf Group plc by Songbird
Acquisition Limited.  His appointment as Independent Director
will be subject to ratification by the Class B and Class C
Shareholders at a meeting of those shareholders, which will be
held on the same day as the first AGM of Songbird Estates.

Derek has extensive commercial and corporate governance
experience and will provide leadership and guidance in his role
as Chairman.  The proposed appointment of a candidate of his
caliber and experience demonstrates the commitment of Songbird
Estates and the Consortium members to ensure that the business
is managed in the best interests of all shareholders.

Derek Bonham, commenting on his appointment, said:

"I am delighted that Songbird Estates has invited me to become
Chairman.  I believe that the combination of the financial and
property expertise brought by the consortium members creates an
exciting opportunity for accepting shareholders to participate
in the future success of Canary Wharf."

Stephane Theuriau, a director of Songbird Estates, said:

"We are delighted to welcome Derek Bonham, who brings a great
wealth of experience to the board."

Biography:

Derek Bonham (aged 60) is Chairman of Imperial Tobacco Group
plc; CamAxys Group plc (AIM listed) and a non-executive director
of TXU Corporation (U.S.A.).  He was Chairman of Cadbury
Schweppes plc from 2000-2003, interim Chairman of Marconi plc
from 2001-2002 and served as a non-executive director of Glaxo
Wellcome plc/Glaxo Smithkline plc from 1995-2001.  A chartered
accountant by qualification, he was chief financial officer of
Hanson plc from 1981-1992 and chief executive from 1992-1997.

CONTACT:   MORGAN STANLEY
           Phone: +44 20 7425 5000
           Mark Warham
           Brian Magnus

           ROTHSCHILD
           Phone: +44 20 7280 5000
           Alex Midgen
           Ben Davey

           HOARE GOVETT
           Phone: +44 20 7678 8000
           Nigel Mills
           Ranald McGregor-Smith

           TULCHAN COMMUNICATIONS
           Phone: +44 20 7353 4200
           Andrew Grant
           Katie Macdonald-Smith

           SMITHFIELD FINANCIAL
           Phone: +44 20 7360 4900
           John Antcliffe


CAPITAL STRATEGIES: Hires Liquidators from Grant Thornton
---------------------------------------------------------
At an Extraordinary General Meeting of the Capital Strategies
Limited Company on April 8, 2004 held at 90 Fetter Lane, London
EC4, the Special, Ordinary and Extraordinary Resolutions to wind
up the Company were passed.  Martin Ellis and Nicholas Wood of
Grant Thornton, Grant Thornton House, Melton Street, Euston
Square, London NW1 2EP have been appointed Joint Liquidators of
the Company.

CONTACT:  GRANT THORNTON
          Grant Thornton House
          Melton Street, Euston Square,
          London NW1 2EP
          Contact:
          Martin Ellis, Liquidator
          Nicholas Wood, Liquidator


CARDDEAL LIMITED: Calls in Liquidator
-------------------------------------
Name of Companies:
Cardeal Limited
Flowsurf Limited
Hammerstand Limited
Malletcondor Limited
Mallethammer Limited
Netglen Limited
Paperwater Limited
Ravenmallet Limited

At Extraordinary General Meetings of these Companies on March
31, 2004 held at BT Centre, 81 Newgate Street, London EC1A 7AJ
the subjoined Special Resolution to wind up the Company was
passed.  Malcolm Cohen of BDO Stoy Hayward LLP, 8 Baker Street,
London W1U 3LL has been appointed Liquidator for the purpose of
such winding-up.

CONTACT:  BDO STOY HAYWARD LLP
          8 Baker Street,
          London W1U 3LL
          Contact:
          Malcolm Cohen, Liquidator


CHARTERHOUSE WILLIS: Creditors Meeting Set April 30
---------------------------------------------------
There will be a Creditors Meeting of the Charterhouse Willis
Limited Company on April 30, 2004 at 12:00 noon.  It will be
held at the offices of Irwin & Company, 75 Coleshill Street,
Sutton Coldfield, West Midlands B72 1SH.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy form must be submitted together with written
debt claims to 75 Coleshill Street, Sutton Coldfield, west
Midlands B72 1SH not later than 12:00 noon, April 29, 2004.

CONTACT: IRWIN & COMPANY
         75 Coleshill Street
         Sutton Coldfield,
         West Midlands B72 1SH


CITYCHARM LIMITED: Appoints Administrative Receiver
---------------------------------------------------
Name of Company: Citycharm Limited

Nature of Business: Property Development

Trade Classification: 35

Date of Appointment: April 2, 2004

Administrative Receiver:  TOMLINSONS
                          St Johns Court,
                          72 Gartside Street,
                          Manchester M3 3EL
                          Receiver:
                          Alan Howard Tomlinson
                          (IP No 6585)


CORPORATE CATERING: Meeting of Creditors Set May 4
--------------------------------------------------
There will be a Creditors Meeting of the Corporate Catering
Company Limited on May 4, 2004 at 11:00 a.m.  It will be held at
Baker Tilly, 1st Floor, 46 Clarendon Road, Watford WD17 1JJ.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Baker Tilly, 1st Floor, Clarendon road, Watford,
Hertfordshire WD17 1JJ not later than 12:00 noon, May 3, 2004.

CONTACT:  BAKER TILLY
          1st Floor, Clarendon Road,
          Watford, Hertfordshire WD17 1JJ
          Contact:
          Mark John Wilson, Joint Administrator
          Tracey Elizabeth Callaghan, Joint Administrator


CORUS GROUP: Returns to Operating Profit in First Quarter
---------------------------------------------------------
AGM Trading Update

"As a result of continued strong demand from China in the first
quarter of 2004, the global steel industry has experienced
unprecedented increases in input costs and shortages of some key
raw materials.

Sales price increases now taking effect will offset these higher
costs.  Further price rises have been announced for the third
quarter.

Notwithstanding the above challenges and against the background
of sluggish demand in our core European market, the performance
of the Group has continued to improve, and I am pleased to
announce a return to operating profit in the first quarter of
2004.

Looking ahead, the planned benefits from our Restoring Success
initiatives and announced price increases should result in
continued progress in margins and profits as the year develops."


ECO-BAT TECHNOLOGIES: Outlook Positive as Lead Market Improves
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on U.K.-
based lead recycling group Eco-Bat Technologies Ltd. to positive
from stable, due to a robust fourth-quarter performance on the
back of a strong rebound in the price of lead.  At the same
time, Standard & Poor's affirmed its 'B+' corporate credit
rating on Eco-Bat and its 'B' senior unsecured debt rating on
related entity Eco-Bat Finance PLC, guaranteed by Eco-Bat.

The lead price has staged a remarkable recovery in the second
half of 2003 and in the beginning of 2004, in response to
capacity reductions, low inventories, strong demand in Asia, and
a weak U.S. dollar.

"In light of the market evolution, the weak performance of Eco-
Bat in the first eight months of 2003, and subsequent strong
recovery in the past four months, can be attributed to the
extreme volatility in the price of lead and lag effects," said
Standard & Poor's credit analyst Tommy Trask.

"Furthermore, Standard & Poor's takes some comfort in the fact
that Eco-Bat managed to ride out the recent trough in the lead
cycle relatively unharmed."

The company has made efforts to reduce the impact of such
effects on its performance in the future by introducing delivery
premium escalation provisions into its supply contracts. In
addition, it has entered into a hedging arrangement (one year
forward) that will compensate Eco-Bat when the London Metal
Exchange lead price is below a certain level, and help offset
the typical margin erosion that occurs when the lead price is
weak.

It is possible that the ratings on Eco-Bat could be upgraded by
one notch if stronger cash flows expected in the second half of
2004 are used for debt repayment and reinvestment into the
business.  FFO to net debt and net interest coverage are
expected to average about 15%-20% (15% for 2003) and 2.5x (2.2x
for 2003), respectively, over a cycle for the 'B+' rating.

CONTACT:  FITCH RATINGS
          Analyst E-mail Addresses:
          tommy_trask@standardandpoors.com
          olivier_beroud@standardandpoors.com
          CorporateFinanceEurope@standardandpoors.com


EUROTUNNEL PLC: French Ministry Supports Strategy
-------------------------------------------------
On Tuesday 21 April 2004, Nicolas Sarkozy, the French Minister
for the Economy, Finance and Industry received a delegation from
the Board and new management of Eurotunnel, including Chairman,
Jacques Maillot, Chief Executive, Jean-Louis Raymond, and board
member, Pierre Cardo.

The constructive meeting allowed the participants to explain the
situation of the company, and on the other hand, to clarify the
position of the French government.

During the talks, the new management gave a broad outline of the
strategy that it plans to describe in greater detail and put in
place within the next 90 days.

The Minister confirmed that the French government is closely
monitoring the situation at Eurotunnel, and that the French
Ministry for the Economy, Finance and Industry would bring its
technical expertise in financial matters.

The delegation thanked the Minister for his time and his
willingness to contribute to finding a positive solution to a
very complex situation.

Eurotunnel manages the infrastructure of the Channel Tunnel and
operates accompanied truck shuttle and passenger shuttle (car
and coach) services between Folkestone, U.K. and
Calais/Coquelles, France.  It is market leader for cross-Channel
travel. Eurotunnel also earns toll revenue from other train
operators (Eurostar for rail passengers, and EWS and SNCF for
rail freight), which use the Tunnel.  Eurotunnel is quoted on
the London, Paris and Brussels Stock Exchanges.

CONTACT:  EUROTUNNEL PLC
          Kevin Charles
          Phone: + 44 (0) 1303 288 728

          Investor Enquiries:
          Xavier Clement
          Phone: + 33 1 55 27 36 27


EUROTUNNEL PLC: Loses Chief Financial Officer
---------------------------------------------
Roger Burge resigned on Wednesday as the chief financial officer
of Channel Tunnel operator, Eurotunnel plc.

The executive who survived the board shakeup at the company
early this month said he was leaving for "personal reasons."

Mr. Burge was with Eurotunnel since 1992, and has helped former
chief executive Richard Shirrefs lay the foundation of the
Galaxie plan aimed at improving the state of affairs at the
company.

Deputy Chief Executive Herve Huas said his departure would not
"change much," but people on Mr. Burge's side thinks otherwise.
City sources are as well worried as they see Mr. Burge, who is
the only one remaining who knew much of the company's finances,
as crucial to the company's discussions with banks.

Eurotunnel owes GBP6.4 billion to a consortium of banks and
financial institutions.

CONTACT:  EUROTUNNEL PLC
          Xavier Clement
          Phone: + 33 1 55 27 36 27


FORGE TECH: Names PricewaterhouseCoopers Administrator
------------------------------------------------------
Name of Company: Forge Tech Industries Limited

Nature of Business: Forging and Welding

Registered Office of Company:
Churchfield House, 36 Vicar Street, Dudley, West Midlands DY2
8NG

Trade Classification: 06

Date of Appointment: April 14, 2004

Joint Administrative Receiver:  PRICEWATERHOUSECOOPERS LLP
                                Cornwall Court
                                Cornwall Street,
                                Birmingham B3 2DT
                                Receivers:
                                Mark David Hopkins
                                Alistair Michael Grove
                                (IP Nos 8365, 7913)


GILLS COMPONENTS: Appoints Receivers from CBA
---------------------------------------------
Name of Company: Gills Components Limited

Nature of Business: Casting of Other Non-ferrous Metals

Trade Classification: 2754 Casting of Other Non-ferrous Metals

Date of Appointment: April 14, 2004

Administrative Receiver:  CBA
                          Lichfield Place,
                          435 Lichfield Road,
                          Aston, Birmingham B6 7SS
                          Receivers:
                          Geoff Robbins
                          Neil Richard Gibson
                          (IP Nos 6622, 9213)


HILL & JACKSON: Creditors Meeting Set April 29
----------------------------------------------
There will be a Creditors Meeting of the Hill & Jackson (Radio &
Television) Limited Company on April 29, 2004 at 10:30 a.m.  It
will be held at Maclaren House, Skerne Road, Driffield, East
Yorkshire YO25 6PN.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Maclaren House, Skerne Road, Driffield, East
Yorkshire YO25 6PN not later than 12:00 noon, April 28, 2004.

Contact: A J Nichols, Joint Administrator
         Maclaren House, Skerne Road,
         Driffield, East Yorkshire YO25 6PN


J W LIMITED: Appoints PwC Administrator
---------------------------------------
Name of Company: J W Non-Trading Limited
                 (formerly Carr Gate Nurseries Limited)

Nature of Business: Garden Centre

Trade Classification: 22-Other Retail

Date of Appointment: April 14, 2004

Joint Administrative Receiver:  PRICEWATERHOUSECOOPERS LLP
                                Benson House,
                                33 Wellington Street,
                                Leeds LS1 4JP
                                Receivers:
                                Ian D Green
                                David M Walker
                                (IP Nos 9045, 3606)


LEEDS UNITED: May Announce GBP20 Million New Funding Soon
---------------------------------------------------------
Owners of Leeds United have agreed to an offer of new investment
for the football club with a group headed by businessman Steve
Parkin, Yorkshire Evening reported, according to Leeds Today.

The deal is estimated at more than GBP20 million, which means a
new director could ascend to the club's board before the end of
the season.   A new board is currently being assembled and will
be unveiled when the agreement is finally signed off, the report
said.

The company was saved from administration last month after
Yorkshire-based consortium Adulant Force Limited took over the
company for GBP30 million.  The transaction brought in Gerald
Krasner, David Richmond, Simon Morris, Melvyn Levi, Melvyn Helme
and Peter Lorimer as directors of the team.


MARCONI CORPORATION: Sales Slightly Down After U.S. Asset Sale
--------------------------------------------------------------
Marconi Corporation plc (LSE: MONI; NASDAQ: MRCIY) provided a
trading update for the fourth quarter ended 31 March 2004.

Mike Parton, Chief Executive, said: 'Trading in the final
quarter of the year was in line with our expectations and
previous guidance.  The company achieved all of its operating
targets in the year.  We have a strong product portfolio, cash
in the bank and a tightly managed cost base that positions us
well for the coming year."

Preliminary Results FY04 - 18 May 2004

We will announce preliminary results for the three months and
twelve months ended 31 March 2004 on 18 May 2004 and will host a
meeting and conference call for analysts and investors at 3 p.m.
on that date.  Full details will be issued shortly.
Consequently, we will not host a conference call in connection
with this trading update.  Analyst and investor enquiries should
be directed to Heather Green, EVP Investor Relations.

Basis of Preparation

The financial information in this trading update is unaudited
and has been prepared in accordance with U.K. accounting
policies set out in Marconi Corporation plc's 2003 Annual Report
and Accounts.

Following the previously announced disposal of our North
American Access business in February 2004, this unit is
accounted for as a discontinued operation at 31 March 2004.

The following table sets out the U.S. Dollar/Sterling and
Euro/Sterling exchange rates used in preparing our financial
information:

FY04                      Q1        Q2        Q3        Q4
US Dollar:
Year to Date          1.6288    1.6227    1.6594    1.7023
Average
Period End            1.6502    1.6614    1.7902    1.8379

Euro:
Year to Date          1.4206    1.4262    1.4301    1.4435
Average
Period End            1.4370    1.4267    1.4193    1.4956

Trading Update

Sales

Sales from Continuing Operations amounted to GBP378 million, a
1% increase on sales of GBP374 million recorded in the third
quarter.  Sales growth in local currencies was partially offset
by adverse foreign exchange movements on translation to
sterling, mainly as a result of the continued weakening of the
U.S. dollar as well some depreciation of the Euro.  At Q3 FY04
exchange rates, fourth quarter sales from Continuing Operations
amounted to GBP395 million, representing a 6% increase on the
previous quarter on a constant currency basis.

Group sales amounted to GBP394 million compared to sales of
GBP408 million recorded in the third quarter.  The main reason
for this 3% decline was the disposal of our North American
Access business completed on 20 February 2004.

Sales by Product Area

in GBPm                                   3 months ended
                                 Mar 31     Dec. 31    Mar. 31
                                  2004        2003       2003
Optical Networks                   84         81           101
Access Networks                    73         62            61
Other Network Equipment            10         17            17
                                ------      -----        ------
Europe/RoW                        167        160           179
Network Equipment
IC&M                               44         48            57
VAS                                72         68            69
                                ------      -----        ------
Europe/RoW Network                116        116           126
Services                        ------      -----        ------

Europe/RoW - Total                283        276           305
                                =====       =====        ======

BBRS Equipment                     34         30            37
OPP Equipment                      38         43            30
                                ------      -----        ------
US Network Equipment               72         73            67
BBRS Services                      12         13            15
OPP Services                       11         12            15
                                ------      -----        ------
US Network Services                23         25            30
                                ------      -----        ------
US businesses - Total              95         98            97
                                ======      =====        ======
Network Equipment and             378        374           402
Network Services - Total
Other                               -          -             3
                                ------      -----        ------
Continuing Operations             378        374           405
Discontinued Operations            16         34            25
                                ------      -----        ------
Group                             394        408           430
                                ======      =====        ======


Sales by Geographic Destination

in GBPm                                   3 months ended
                                  Mar 31     Dec. 31    Mar. 31
                                   2004        2003       2003

EMEA                                253         241          264
North America                        90          88           93
CALA                                 10          13           16
APAC                                 25          32           32
                                  -----       -----        -----
Continuing Operations               378         374          405
Discontinued Operations              16          34           25
                                  -----       -----        -----
Group                               394         408          430
                                  =====       =====        =====

The main trends impacting sales from Continuing Operations
during the fourth quarter compared to the third quarter were:

(a) There was no significant change in market conditions in
   Optical Networks where demand remains relatively flat.  Sales
   of optical equipment to Telecom Italia were down quarter on
   quarter as this customer re-allocated planned optical spend
   to focus on deployment of its broadband access network.  This
   was more than offset however by an increased level of SDH
   sales to BT, as expected, resulting from the phasing of
   certain supply contracts and following the lower level of
   deliveries in the previous quarter.  Also in the quarter, we
   recorded initial sales of our new multi-haul DWDM platform
   under the recently awarded frame contract from TeliaSonera.

(b) Telecom Italia's accelerated broadband deployment was the
   major contributor to the substantial increase in Access Hub
   sales during Q4; this and the recognition of sales (in
   accordance with the contract terms) relating to Access Hubs
   delivered to Telecom Italia at the end of Q3 led to a
   doubling of Access Hub sales to approximately GBP20 million
   in the fourth quarter.  In the U.K., deliveries under our
   Access Hub frame contract signed with BT in August 2003 will
   commence, as planned, during the first quarter of the current
   financial year.

(c) Sales of Fixed Wireless Access dropped slightly from GBP26
    million in Q3 to GBP24 million in Q4.  As expected, a number
    of the German mobile operators have reduced their spending
    after meeting the German regulator's 31 December deadline
    for 25% 3G mobile coverage.  Sales to Vodafone increased
    quarter on quarter however, as our largest German wireless
    customer continued to invest aggressively in its 3G build-
    out program in the final quarter of its financial year.

(d) Sales of BBRS equipment and services, which are mainly U.S.-
    dollar denominated, increased by 7% to GBP46 million
    (Q3 FY04 GBP43 million) on a reported basis, after a GBP4
    million negative U.S. dollar/sterling translation impact.
    This improved sales performance resulted from a strong
    increase in sales to the U.S. Federal Government including
    additional sales of our BXR-48000 multi-service switch-
    router.  This was as expected and in line with this major
    customer's typical seasonal spending pattern.

(e) Sales of OPP equipment and services fell to GBP49 million
    during the quarter (Q3 FY04 GBP55 million). This was partly
    due to the negative U.S. dollar/sterling translation effect
    (approximately GBP5 million).  Underlying sales performance
    as impacted by the lower level of orders recorded in the
    previous quarter as OPP's major US wireless customers slowed
    planned network builds and also as a result of a slowdown in
    outside plant deployments during the winter months.

(f) The reduction in sales of Other Network Equipment related
    mainly to phasing of contracts within our Hong Kong-based
    legacy operations; sales of Interactive Systems remained
    stable.

(g) European/RoW Network Services was stable at GBP116 million.
    Sales of Installation, Commissioning and Maintenance
    services were down quarter on quarter, mainly as a result of
    reduced activity with Italian second operators and certain
    German mobile operators as well as reduced sales to Dubai
    Marina in line with the phasing of this long-term contract.
    This was offset by growth in Value-Added Services mainly
    driven by the first deliveries under our extended 3-year
    maintenance support contract in the Middle East as well as
    increased sales under Integrated Systems contracts in
    the U.K. (West Coast Main Line and University College London
    Hospital).

Our ten largest customers during the three months ended 31 March
2004 were (in alphabetical order) AT&T, BT, E-Plus, Metro City
Carriers Germany), Sprint, Telecom Italia, Telkom South Africa,
the U.S. Federal Government, Verizon and Vodafone Group.  In
aggregate, these customers accounted for 55% of sales from
Continuing Operations (Q3 FY04: ten largest customers 47%).

BT accounted for 22% of sales from Continuing Operations (Q3
FY04: 18%).

Book-to-Bill

In Network Equipment, book-to-bill increased from 0.90 in Q3 to
0.94 in Q4.  This was mainly due to the higher level of BBRS
equipment orders received from the U.S. Federal Government,
which more than offset a reduced level of orders from mobile
operators in Germany.

Book-to-bill ratio in Network Services is less meaningful due to
the long-term contract nature of this activity, where the total
value of a firm order is booked at the time of contract
signature and then traded through sales over the life of the
contract.  Contracts can typically run for two to five years or
more.

No major long-term contracts were booked during Q4 compared to
support contracts for TollCollect in Germany and BT and the
Highways Agency in the U.K. during Q3.
This led to a reduction in the book-to-bill ratio in Network
Services from 1.18 in Q3 to 0.83 in Q4 and consequently to a
reduction in overall book-to-bill in Continuing Operations from
1.00 to 0.90.

Sales Outlook
The following outlook is based on our view of the expected like-
for-like sales profile of our Continuing Operations and does not
take into consideration any impact of future foreign exchange
movements.

We re-affirm our view that market demand is stabilizing and are
anticipating a return to year-on-year stability in the first
quarter compared to the level of sales recorded in the
corresponding period of the last financial year (GBP342 million)
on a constant currency basis and excluding North American
Access.  This profile is in line with the typical seasonal
buying patterns of our major customers.

It remains difficult to accurately predict the timing and volume
of deliveries beyond the current quarter but based on our latest
view of existing frame contract run-rates and our order
pipeline, we see potential for low single digit growth in sales
for the current financial year as a whole (compared to the year
ended 31 March 2004).  From a product perspective, we expect
relatively stable trading in Optical Networks, BBRS, OPP and
Value-Added Services with strong growth in Access Networks,
mainly fuelled by the initiation of volume deployment of our
Access Hub into BT's 21st Century Network.

We continue to experience a strong level of interest in our next
generation multi-service network offering through ongoing
tenders and product trials and believe that we are well-
positioned for this to translate to growth opportunities for the
business in the medium-term.

Operational Performance

We have made further strong progress with our initiatives to
improve gross margin and reduce operating costs.

Based on preliminary management information, underlying adjusted
gross margin (before exceptional items) came in at the top-end
of our targeted range of 28 to 30%.  In addition, as expected,
we benefited from the non-recurring sale of software licenses.

The main drivers of underlying gross margin improvement during
the quarter were further supply chain and procurement savings as
well as improved profitability on long-term service contracts
following our usual contract risk reviews.

Equally, based on preliminary management information, we exited
the financial year at an annualized adjusted operating cost run-
rate (before share option costs, goodwill amortization and
exceptional items) slightly better than our previously stated
target.

At 31 March 2004, we employed 12,425 people in our Continuing
Operations compared to 12,775 at 31 December 2003.

This data remains subject to further management and audit
review.  We will disclose full details of gross margin,
operating costs, exceptional items (relating mainly to our
ongoing operational restructuring process) and overall operating
result in our preliminary results announcement on 18 May.

Cash Flow

We achieved a further quarter of positive operating cash flow
(before exceptional items) as a result of our improved operating
performance and further contribution from working capital
reductions.  Cash collections were particularly strong during
the final month of our financial year, boosted by the earlier
than scheduled receipt of payments from one major European
customer and a GBP10 million one-off reduction in other debtors
following the settlement of a vendor finance arrangement,
involving the supply of North American Access equipment,
extended to Grande Communications Inc in December 2001. This
reduces Marconi's total vendor finance exposure to GBP26
million, all of which pre-dates our financial restructuring.

Cash generated from operations was sufficient to cover the cash
costs of our operational restructuring (mainly severance
payments and onerous lease commitments) and interest paid on our
Junior and Senior Notes during the period.

In addition, we received $240 million (approximately GBP129
million) gross cash proceeds from the disposal of our North
American Access business in February 2004.

We will disclose full cash flow information in our preliminary
results announcement.

Cash and Debt

Overall, we further reinforced our net cash balance to GBP214
million at 31 March 2004 (from GBP108 million at 31 December
2003).

The following table sets out the composition of the Group's net
cash balances at these dates:


In GBPm                          March 31, 2004   Dec. 31, 2003
US$-denominated Senior Notes          (265)        (400)
US$-denominated Junior Notes             -         (133)
Other bilateral and bank debt          (40)         (46)
                                    --------    ---------
Gross financial indebtedness          (305)        (579)
Cash and liquid resources              519          687
                                    --------    ---------
Net Cash                               214          108
                                    ========    =========

During the quarter, we completed the pay-down of our Junior
Notes (GBP133 million) and reduced the principal amount
outstanding of our U.S.-dollar denominated Senior Notes by
approximately GBP135 million to GBP265 million ($487 million).

Approximately GBP128 million of this reduction in principal
amount resulted from partial mandatory redemptions at 110% of
par value and market repurchases.  We funded the partial
mandatory redemptions from the proceeds from the disposal of our
North American Access business (approximately GBP129 million),
from releases of cash collateral relating to performance bonding
(approximately GBP60 million) and from the previously reported
balance in the Mandatory Redemption Escrow Account as at 31
December 2003 (GBP32 million).  In addition, we used
approximately GBP68 million of our unrestricted cash balances to
fund repurchases of the Junior and Senior Notes in a number of
open market transactions.  Approximately GBP12 million of the
debt reduction related to foreign exchange.

Following the end of the reporting period, we further reduced
the principal amount outstanding of the Senior Notes to GBP242
million ($445 million) through the settlement of repurchases of
Notes transacted prior to 31 March 2004 (GBP8 million) and a
fourth mandatory redemption on 22 April 2004 (GBP15 million).

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications
equipment, services and solutions company.  The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services.  The company's customer base includes
many of the world's largest telecommunications operators.

The company is listed on the London Stock Exchange under the
symbol MONI and on Nasdaq under the symbol MRCIY.

Additional information about Marconi Corporation can be found at
http://www.marconi.com

Marconi Corporation PLC
22 April 2004

CONTACT:  MARCONI CORPORATION
          David Beck
          Phone: 0207 306 1490
          E-mail: david.beck@marconi.com

          Investor enquiries:
          Heather Green
          Phone: 0207 306 1735
          E-mail: heather.green@marconi.com


MAYFLOWER CORPORATION: Mayflower Energy Files for Administration
----------------------------------------------------------------
On 31 March 2004, Nicholas Dargan and Nicholas Edwards (both of
Deloitte & Touche LLP) were appointed as Administrators of The
Mayflower Corporation PLC.

Administrators (also of Deloitte & Touche LLP) have also been
appointed to the following Mayflower subsidiaries:

Subsidiary                                        Administrators
Date of Appointment

TransBus International Limited                    Nicholas
Dargan             31 March 2004
                                                  John Reid

Mayflower Management Services Limited             Nicholas
Dargan             31 March 2004
                                                  Nicholas
Edwards

Mayflower Vehicle Systems plc                     William Dawson
31 March 2004
                                                  Nicholas
Dargan
                                                  Andrew Peters

Mayflower Energy Limited                          Nicholas
Dargan             2 April 2004
                                                  Ian Brown

TransBus Fleet Management Limited                 Nicholas
Dargan             7 April 2004
                                                  John Reid

Mayflower Energy Holdings Limited                 Nicholas
Dargan             21 April 2004
                                                  Ian Brown

Since the date of their appointment the Administrators have been
seeking to achieve either sales of the companies in the
Mayflower group or sales of the businesses and assets under
their control.

The Administrators are optimistic that the disposals of either
the companies or the businesses and assets will be concluded
satisfactorily.  However, given the level of debt across the
Mayflower group, the Administrators do not anticipate that there
will be a return to The Mayflower Corporation Plc shareholders.

In light of this situation, there is no current intention to
request that the suspension of shares of The Mayflower
Corporation PLC from listing on the Official List and trading on
the London Stock Exchange be lifted.


MERRICKS LLP: Hires Joint Administrators from Numerica
------------------------------------------------------
Name of Company: Merricks LLP

Registered Office: 207-208 Moulsham Street, Chelmsford, Essex

Nature of Business: Solicitors

Administration Order made: April 8, 2004

CONTACT:  NUMERICA
          PO Box 2653, 66 Wigmore Street,
          London W1A 3RT
          Joint Administrators:
          Nicholas Hugh O'Reilly
          Jonathan Mark Birch
          (Office Holder Nos 8309, 5328)


MIDSHIRES MEAT: Hires Receivers from Begbies Traynor
----------------------------------------------------
Name of Company: Midshires Meat Packaging Limited

Nature of Business: Production Meat and Poultry Products

Trade Classification: 1513

Date of Appointment: April 14, 2004

Joint Administrative Receiver:  BEGBIES TRAYNOR
                                Elliot House
                                151 Deansgate,
                                Manchester M3 3BP
                                Receivers:
                                P Stanley
                                G N Lee
                                (IP Nos 8123, 9204)


MOODY HALL: Winding up Special Resolutions Passed
-------------------------------------------------
At an Extraordinary General Meeting of the Moody Hall Nursing
Home Limited Company on April 5, 2004 held at The White House,
61 Newcastle Road, Congleton CW12 4HL, the subjoined Special
Resolution to wind up the Company was passed.  Robert Michael
Young of Poppleton & Appleby, Brampton House Mews, 10 Queen
Street, Newcastle under Lyme, Staffordshire ST5 1ED has been
appointed Liquidator for the Company.

CONTACT:  POPPLETON & APPLEBY
          Brampton House Mews
          10 Queen Street, Newcastle under Lyme,
          Staffordshire ST5 1ED
          Contact:
          Robert Michael Young, Liquidator


MYFAST LIMITED: Names Critchleys Liquidator
-------------------------------------------
At an Extraordinary General Meeting of the Myfast Limited
Company on March 29, 2004 held at Marlborough House, Charnham
Lane, Hungerford, Berkshire RG17 0EY, the Special, Ordinary and
Extraordinary Resolutions to wind up the Company were passed.
Susan Margaret Roscoe of Critchleys, Greyfriars Court, Paradise
Square, Oxford OX1 1BB has been appointed Liquidator of the
Company for the purpose of the voluntary winding-up.

CONTACT: CRITCHLEYS
         Greyfriars Court
         Paradise Square, Oxford OX1 1BB
         Contact:
         Susan Margaret Roscoe, Liquidator


PGS ENGINEERING: Appoints Moore Stephens Administrator
------------------------------------------------------
Name of Company: PGS Engineering Limited

Nature of Business: Engineering

Trade Classification: 07

Date of Appointment: April 13, 2004

Joint Administrative Receiver:
                           MOORE STEPHENS CORPORATE RECOVERY
                           Beaufort House
                           94-96 Newhall Street,
                           Birmingham B3 1PB
                           Receivers:
                           Roderick Graham Butcher
                           Nigel Price
                           (IP Nos 8834, 8778)


ROYAL DOULTON: Shareholders Re-elect Chairman Hamish Grossart
-------------------------------------------------------------
An overwhelming majority of Royal Doulton shareholders backed
chairman Hamish Grossart against an attempt by a labor MP to
oust him in the loss-making pottery group.

Newcastle-under-Lyme MP, Paul Farrelly, had wanted to block the
re-election of Mr. Grossart at last week's annual meeting
because of his alleged failure to run the business profitably.
He blamed Mr. Grossart for the major slump in the company.

He told him: "Since you became chair, Royal Doulton has racked
up GBP127 million of pre-tax losses, has never made a profit,
has never paid a dividend and has seen turnover halve,"
according to The Telegraph.

He went on to enumerate the effects of Mr. Grosshart's failure:
the closure of all 11 of the company's U.K. factories, the
dismissal of more than 4,000 workers, and the slump in the
company's shares.  He also attacked Mr. Grosshart's pay,
mentioning the latter received GBP120,000 salary for one day a
week as the company made a loss of GBP5 million.

Yet, more than 99% of shareholders voted to put him on the
position of chairman on Wednesday's meeting.

Mr. Grosshart said: "I know it is fashionable to attack
remuneration. . . but debts have been reduced and there were no
performance bonuses paid last year. My job is to save and fix
this company and that is what I intend to do."


CONTACT:  ROYAL DOULTON
          Wayne Nutbeen, Group Chief Executive Officer
          Phone: 01782 404040
          Geoff Martin, Group Finance Director
          Phone: 01782 404040
          Wendy Baker
          Hudson Sandler
          Phone: 0207 796 4133


SILVERMINES EQUIPMENT: Appoints Liquidator from Critchleys
----------------------------------------------------------
At an Extraordinary General Meeting of the Silvermines Equipment
& Systems Ltd Company on March 29, 2004 held at Marlborough
House, Charnham Lane, Hungerford, Berkshire RG17 0EY, the
Special, Ordinary and Extraordinary Resolutions to wind up the
Company passed.  Susan Margaret Roscoe of Critchleys, Greyfriars
Court, Paradise Square, Oxford OX1 1BB has been appointed
Liquidator of the Company for the purpose of the voluntary
winding-up.

CONTACT:  CRITCHLEYS
          Greyfriars Court
          Paradise Square, Oxford OX1 1BB
          Contact:
          Susan Margaret Roscoe, Liquidator


SOCIETY SCREEN: Hires Liquidator
--------------------------------
At an Extraordinary General Meeting of the Members of The
Society for Screen Based Learning Limited Company on April 4,
2004 held at Regents Park Holiday Inn, Carburton, London W1, the
Special Resolutions to wind up the Company were passed.  Eileen
Blackburn of French Duncan of 375 West George Street, Glasgow
has been appointed as Liquidator for the purpose of such
winding-up.

CONTACT:  FRENCH DUNCAN
          375 West George Street,
          Glasgow
          Contact:
          Eileen Blackburn, Liquidator


SUPREME WINDOWS: Names Poppleton & Appleby Administrator
--------------------------------------------------------
Name of Company: Supreme Windows & Conservatories Limited

Date of Appointment: April 13, 2004

Administrative Receiver:  POPPLETON & APPLEBY
                          32 High Street,
                          Manchester M4 1QD
                          Receiver:
                          Stephen Lord
                          (IP No 3443)


T.E.P. RETAIL: Appoints Moore Stephens Liquidator
-------------------------------------------------
At an Extraordinary General Meeting of the Members of the T.E.P.
Retail Investments (U.K.) Limited Company on April 6, 2004 held

at 166 Sloane Street, London SW1X 9QF, the Special, Ordinary and
Extraordinary Resolutions to wind up the Company were passed.
David Alan Rolph and Philip Rodney Sykes of Moore Stephens, 1
Snow Hill, London EC1A 2EN have been appointed Joint Liquidators
for the purpose of the voluntary winding-up.

CONTACT:  MOORE STEPHENS
          1 Snow Hill
          London EC1A 2EN
          Contact:
          David Alan Rolph, Liquidator
          Philip Rodney Sykes, Liquidator


WH SMITH: Senior Unsecured Rating Lowered to 'BB+'
--------------------------------------------------
Fitch Ratings on Wednesday downgraded WH Smith plc's Senior
Unsecured rating to 'BB+' from 'BBB-' (BBB minus) and the short-
term rating to 'B' from 'F3'.  The Rating Outlook has been
changed to Negative.

The downgrade reflects the deterioration in WH Smith's business
profile and its debt protections measures, which are
incompatible with an investment-grade rating.  In the case of a
takeover bid from Permira, further rating action is likely to
occur.

Although WH Smith remains a major player on the U.K. high
street, its core U.K. retail business is suffering from
significant competition from specialist retailers and
supermarkets.  U.K. retail, which consists primarily of high
street and travel retail, is the most important part of WH
Smith, accounting for some 85% of the GBP106 million of
operating profits before exceptional and goodwill amortization
in FY03.  U.K. retail's operating margin has declined over the
past two years (from 6.5% in FY02 to 6.2% in FY03) and this
trend continued in 1H04, where operating margin declined to
6.1%, from 10.0% in the first six months to February 2004.

Margin erosion has resulted from increased competition for WH
Smith's main high street product categories.  Market share has
been lost to specialist retailers, which benefit from a broader
product range, and also to supermarkets, who typically offer
better prices on the most popular products.  As a result, the
company's level of operating exceptional items in 1H04 was high
(GBP75 million), with a substantial part deriving from stock
impairment in the entertainment category.  The company's
strategy for its U.K. retail business is a medium-term one, and
consists of mainly cost control measures, the improvement of
stock availability, of the store offer and improvement in
product range planning.  These measures, however, bear
substantial execution risk.

Some comfort is gained from the sale of the group's U.S.
operations, which was announced in September 2003, and the
intended sale of the company's Asia/Pacific retail business.
This will enable the company to concentrate on its U.K.
operations.

WH Smith continues to rely heavily on operating leases to fund
its store portfolio.  As a result, on-balance sheet total debt
at the group is limited to GBP28 million at 1H04.  However,
substantial debt-like commitments remain in the form of annual
operating lease payments.  Using Fitch's lease-adjusted ratios,
the group's adjusted Net Debt/EBITDAR ratio remained stable at
4.3x in FYE03.  Adjusted interest cover for the group as
measured by EBITDAR/Interest + Rent deteriorated to 1.7x from
1.9x in FY02.  These ratios are not expected to improve over the
next few years.  For YE04, the company forecasts a substantially
lower net cash flow than in the same period of last year.

CONTACT:  FITCH RATINGS
          Britta Holt
          Phone: + 44 (0)20 7862 4022
          Jonathan Pitkanen
          Phone: + 44 (0)20 7417 4201

          Media Relations
          Alex Clelland, London
          Phone: +44 20 7862 4084


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
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Copyright 2004.  All rights reserved.  ISSN 1529-2754.

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