2006 press releases

Financial Performance

• Profit before taxation and exceptional items* from continuing and discontinued operations £16.0m (2005/06: £25.7m), in line with our expectations
• Profit for the period £30.5m (2005/06: £14.4m)
• Revenue from continuing operations £645.1m (2005/06: £651.9m) with underlying revenue* down 1.1%
• Encouraging performance from retained* businesses with underlying revenue up 3.6% and profit from operations before exceptional items £25.3m (2005/06: £25.8m)
• Interim dividend of 1.5 pence per share (2005/06: 3.4 pence per share), in line with rebasing announced in May 2006
• Significant reduction in net debt to £327.5m (2005/06: £399.2m) reflecting strong cash and capital management

Operational Performance

• Chilled division operational improvement and simplification progressing well
• Group central cost reduction programme on target
• Strong brand performances - Goodfella’s pizza breaks through £100m annual retail sales value with growing market share for Fox’s and Grassington’s
• Disappointing Bakery division performance, impacted by highly competitive market, hot weather and Speciality bread fire

Disposal Update

• NFT disposal completed for gross proceeds of £51.2m
• Remaining disposals progressing in line with plans to achieve £200m total proceeds
• Loss-making Trafford Park site closure announced in support of chilled Pastry disposal

Commenting on the results, Chief Executive Pat O’Driscoll said:

"2006/07 is a year of transition as we simplify and refocus the business around higher performing categories. Our improvement programmes are progressing to plan and our strong focus on cash generation will deliver significant incremental value. There is much still to do but I am encouraged by our initial progress."

^{* As disclosed in the Interim Statement for the 26 weeks ended 30 September 2006, underlying revenue excludes the impact of currency effects, discontinued operations and product groups no longer manufactured.  Items which are both material and non-recurring are presented as exceptional items.  The separate reporting of exceptional items helps to provide a greater understanding of the group’s underlying business performance.  Businesses to be retained following the anticipated completion of the current disposal programme comprise Pizza and other categories in the Frozen division, Biscuits, Sandwiches & salads, Ready meals and Christmas puddings.  Adjusted working capital excludes the impact of exceptional items.}

^{Reconciliation of profit before taxation and exceptional items}

	26 weeks 2006/07 £m	26 weeks 2005/06 £m
Continuing	14.9	23.9
Discontinued	1.1	1.8
Total	16.0	25.7