2003 press releases

Key Financials

	Before goodwill amortisation and exceptional items		FRS 3*
	2003	Change YOY	2003	Change YOY
Sales	£722.1m	+6.5%	£722.1m	+6.5%
Operating profit	£42.2m	-9.8%	£39.8m	+35.8%
Pre-tax profit	£32.5m	-16.2%	£25.8m	-65.5%
Earnings per share	5.03p	-8.5%	3.72p	-68.6%
Dividend per share	3.30p	+1.5%	3.30p	+1.5%

• Good sales growth despite tough trading conditions
• Operating profit affected by cost under-recovery, lost contract and exceptional weather
• Progressive dividend policy and share buyback programme continue
• Restructuring to increase focus on core operations and reduce costs
• Search for new chief executive well advanced
• Underlying sales in first five weeks of second half up 3.0%

“As we warned in our September trading update, performance in the first half has been
disappointing. However, it is important that these difficulties should not divert attention
from the fundamental strengths of Northern Foods. We have begun a restructuring
programme designed both to concentrate on our core abilities and to reduce our cost
base across the group. Whilst as always the Christmas trading period will be critical to
our results, with the actions we are taking we aim to stabilise second half pre-tax profits
before goodwill amortisation and exceptional items at around the level achieved in the
comparable period last year.”

Peter Blackburn, Chairman

^{* Last year's results included the effects of the profit on sale of Ski and Munch Bunch to Nestlé UK}