2008 press releases

OPERATING HIGHLIGHTS

FINANCIAL HIGHLIGHTS

• Continuing profit before taxation* up 25.3% at £50.1m (2006/07: £40.0m)
• Profit for the period £34.5m (2006/07: loss £22.5m)
• Adjusted EPS1 20.9% ahead at 7.88p (2006/07: 6.52p)
• Strong cash management continues to drive low net debt2 at £200.2m (2006/07: £174.2m)
• Robust balance sheet – continuation of share buyback programme in 2008/09
• Proposed dividend up 5.9% at 4.50p (2006/07: 4.25p)

£m	2007/08	2006/07
Continuing operations
Revenue*	931.9	888.5
Operating Margin*	5.2%	5.1%
Profit from operations*	58.2	58.2
Profit before taxation*	40.0	33.0
Adjusted earnings per share (EPS)	6.52p	5.68p
Group
Profit before taxation and restructuring items	41.3	45.1
Free cash flow	83.0	30.6
Loss for the period	(22.5)	(5.0)
Loss per share	(4.60p)	(1.03p)
Dividend per share	4.25p	4.25p

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

"We have made good progress during the past year in delivering our strategic plan.  Our profitability and return on invested capital have improved.  Our Chilled business has again achieved strong revenue and profit growth, and the progress made in our Bakery performance has been particularly pleasing.  We continue to take forward our plans to improve profitability in our Frozen division. 

"We have achieved these improvements through a focus on products with 'above average rates of sale', delivered through a commitment to quality, service and innovation.  By eliminating low margin business and driving efficiency, while progressively re-orientating the Group towards markets growing at above average rates, we are well placed to continue to make progress in realising the full potential of the business.

"The current trading environment remains challenging, with continuing commodity cost pressures which we are committed to recovering.  Despite some caution, we expect the underlying business to continue to make good progress in 2008/09."

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