2005 press releases

Northern Foods plc today provides a trading update for the 26 weeks ended 1 October 2005, ahead of the release on 15 November of its Interim Results for the period.

We have also published today a detailed analysis of the impact of IFRS on the comparative period results for the half year ended 2 October 2004 and full year ended 2 April 2005. All Group reporting is now stated on an IFRS basis.

Underlying sales for continuing operations show year-on-year growth of approximately 3.4%. Overall, first half operating margins1 are expected to be broadly maintained. A challenging trading environment and significant inflation in input costs have offset the gains from the Group’s procurement and efficiency programmes.

Performance across our ambient and frozen businesses remains robust. Whilst the chilled division is now operating as a unified business and is beginning to show progress, the process of improving profitability to an acceptable level will take time to achieve.

Pat O’Driscoll, Chief Executive of Northern Foods, said:

“As has been well documented, the trading environment remains tough and we will need to recover further input cost inflation in the second half year, particularly in utilities. Nevertheless, I am encouraged by the good progress we are making to restructure and refocus the business towards our goals.”

^{1 On an IFRS basis but excluding exceptional items previously shown separately under UK GAAP, which will continue to be shown separately for clarity}