Prior to the preliminary results being announced in February, Associated British Ports Holdings Plc has issued its trading statement for the year ending December 31, 2002.

ABP's business has continued to grow during 2002, with turnover for the year expected to have increased by five per cent. Underlying operating profits form the UK ports and transport activities is expected to have grown by three per cent. While underlying pre-tax profit for the year should be slightly ahead current market expectations.

And the sale of the group's Aviation operations in the US is expected to produce an exceptional pre-tax gain of at least £6m.

The UK ports business has continued to develop throughout the second half of the year, adding new revenue-related investments totalling £11m. These include an agreement in principle with Saint-Gobain Building Distribution for the development of a terminal at the Port of Newport, a term contract for a terminal at the Port of Immingham, and the development of a cruise terminal at the Port of Southampton.

Southampton Container Terminals and Tilbury Container Services have experienced increased container throughput this year. In overall terms, associates are expected to produce an operating profit, which will be at least 15 per cent ahead of last year.

The general economic climate remains uncertain. However, ABP's UK ports business has the advantage of having many long-term contracts with strong customers.

This, together with the group's strong cash flow and diverse spread of geographical and cargo risk, leads the group to remain confident of making further progress in 2003.