2004 press releases

Key Highlights

	2004	Increase YOY
Continuing sales	£699.3m	6.1
Operating profit*	£43.6m	3.3
Pre-tax profit**	£33.0m	1.5
Earnings per share**	5.28p	5.0
Pre-tax loss	£(35.9)m
Loss per share	(6.27)p

• Strong sales growth in tough trading conditions
  - Underlying sales up 3.4%
• Good operating profit growth in Ambient and Frozen
• Disappointing performance in Chilled
• Major restructuring programme continues:
  - Emile Tissot, Eden Vale and C&G Seafood sold
  - New divisional structure in place
  - Factory rationalisation under way
• Progressive dividend policy continues - increased 1.5% to 3.35p
• Business review completed
  - Aim to be ‘Supplier of choice in added value convenience foods’
  - Priority is to ‘Get Fit’ – better management of an integrated Northern Foods
  - Reverse operating margin and ROIC decline
  - Action already under way and delivering results

 “We are now entering the Christmas trading period, which is always critical to our results for the year.  Our markets remain extremely competitive, and we face significant additional uncertainty over the trading performance of Marks & Spencer where much change is taking place, making our performance this Christmas particularly difficult to predict.  Following completion of our business review, we are confident that we have the right structure and plans in place to enable Northern Foods to realise the full potential of its scale and product expertise in growing segments of the UK food market.  We are committed to ensuring that this delivers value for our shareholders and customers alike.”

Peter Blackburn, Chairman

 

^{* before operating exceptional items of £34.8 million and goodwill amortisation of £2.0 million}

^{** before operating exceptional items of £34.8 million, loss on disposal of businesses of £32.1 million and goodwill amortisation of £2.0 million}