2004 press releases

Key financials

	Before goodwill amortisation and exceptional items		After goodwill amortisation and exceptional items
	2004	Change YOY	2004	Chnage YOY
Sales	£1,542.1m	+8.5%	£1,542.1m	+8.5%
Operating profit	£107.0m	-7.4%	£85.0m	+20.4%
Pre-tax profit	£86.0m	-11.8%	£75.4m	-28.7%
Earnings per share	13.77p	-7.0%	12.78p	-31.8%
Dividend per share	8.90p	+2.3%	8.90p	+2.3%

• Good sales growth: underlying retail sales† up 3.5%
• Continuing Grocery profit* up to £45.2 million from £40.1 million
• Continuing Convenience profit* down to £56.1million from £72.9 million
• Solway acquired; Fox's Confectionery, Batchelors, Emile Tissot and Eden Vale sold
• New Chief Executive appointed
• Major structural cost initiatives in progress 
• New management structure announced and review of business under way
• Progressive dividend and share buyback programme continue
• Trading in line with expectations in first seven weeks of current year

"The inherent strengths of Northern Foods remain substantial. These are vital in a market place where competition is becoming ever more intense, as reflected in the recent slowing of food sales reported by some of our largest customers. Although this has been a difficult and disappointing year for Northern Foods, and we recognise that much remains to be done, I am confident that we have begun to take the right actions to equip the business to compete in this most demanding climate. I look forward to the increasing benefits to Northern from the refocusing and restructuring initiatives already in hand, and to further developments under the leadership of our new Chief Executive."

Peter Blackburn
Chairman

<sup>†Underlying retail sales exclude the impact of currency, acquisitions, divestments and the 53rd week
* Analysed in the turnover and segmental analysis</sup>