2007 press releases

Financial Highlights

• Profit before tax* up 37.7% at £20.1m, with adjusted eps1 34.3% ahead at 3.21p
• Profit from operations* up 5.9% to £26.8m
• Operating margin* improved by 20 basis points to 6.1%
• Underlying revenue² up 2.7%
• Net debt³ reduced by 33.3% to £218.5m
• Interim dividend increased by 3.3% to 1.55 pence and payment date accelerated

Operating Highlights

• Continued progress against all elements of the performance improvement plan
• Chilled improvement continues, with underlying revenue up 5.4% and operating margin up by 200 basis points
• Repositioning of Fox’s progressing on plan
• Launch of Goodfella’s into the chilled category with ‘Goodfella’s Signatore’
• Recovery of recent commodity cost increases agreed

Financial highlights

Unaudited 26 weeks:	To 29 Sept 2007	To 30 Sept 2006	Increase/ (Decrease)
Continuing operations*:
Revenue	£438.6	£427.8m	2.5%
Profit from operations	£26.8	£25.3m	5.9%
Operating margin	6.1%	5.9%	3.4%
Profit before tax	£20.1m	£14.6m	37.7%
Adjusted earnings per share (eps)	3.21p	2.39p	34.3%
As reported – statutory (see reconciliation below):
Profit for the period (after tax)	£15.0m	£30.5m	(50.8%)
Dividend per share	1.55p	1.50p	3.3%

Commenting on the results, Stefan Barden, Chief Executive, said:

These results show that we are making continued progress in delivering the improvements which we set out in our strategy.  We have seen a strong six months from our Chilled business and a return to revenue growth in Bakery.  In the Frozen division, we have initiated plans to restore profitability in the Pastry and Meat grills operations.  For the second half, we have reached agreement for the recovery of recent commodity cost increases.

We continue to work to improve ongoing profitability from our business.  The markets in which we operate remain challenging and we retain a degree of caution in light of the current pressure on the consumer.  However, we have strong management teams in place and are focused on opportunities to expand, grow and improve returns.

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