SGL CONFIRMS FY07 LOSS

Speirs Group Limited reports a loss after tax, attributable to the shareholders of the company, of $847,000 for the year ended 31 March 2007, as signaled in the company’s advice to its shareholders earlier this year.

Speirs Group Directors describe the result as disappointing, and advise that it was mainly due to the need to provide for larger than expected bad and doubtful debt. Bad debt and doubtful debt provisioning in 2007 amounted to $3,318,000, compared to $1,726,000 the previous year. Most of the bad and doubtful debt in 2007 arose from loans made during the financial years 2001-2005 under lending practices that have since been changed.

Over the last 18 months, new high quality Finance Division management and processes have been introduced. Lending standards have been tightened significantly, asset valuation and recovered asset disposal processes have been upgraded, and an exhaustive review of the receivables portfolio was undertaken during 2007. The Company’s Directors believe that the residual bad debt problem from the pre-2005 period has now been properly addressed with the write-offs and provisioning made in the 2007 financial year.

Speirs Group total revenue declined 2.0% to $43,835,000 in 2007. Finance division revenue increased 1.5% to $31,651,000, and Food division revenue decreased in very competitive conditions to $12,184,000.

Speirs Group Limited paid a fully imputed dividend of 3 cents per share on 26 June 2006. No further dividend will be paid for the 2007 year.

ENDS