3rd Nov 2006 07:01
Greggs PLC03 November 2006 3 November 2006 GREGGS plc AUTUMN TRADING UPDATE Greggs is the UK's leading retailer specialising in sandwiches, savouries and other bakery products, with a particular focus on takeaway food and catering.It has over 1,300 retail outlets throughout the UK, trading under the Greggs and Bakers Oven brands. Group Managing Director Sir Michael Darrington reports: "Group like-for-likesales in the second half to date (19 weeks to 28 October 2006) have increased by0.2%. This represents a modest improvement on the flat performance reported forthe first six weeks of the period in our interim results announcement. A slowlyimproving sales trend has been constrained by particularly disappointing tradingin the four weeks to 7 October, as a result of the unseasonably mild and wetweather. "Consumer reaction to the launch of our initial Greggs' Healthier Options rangeof reduced fat and salt products has been encouraging, though these stillrepresent a relatively small part of our total offer. The next phase of thisimportant product development programme will be rolled out early in the NewYear. Much effort is being applied to a number of other innovatory trials,which will also be implemented in 2007. "As at 28 October we had a total of 1,334 shops under our two brands, a netincrease of 15 since the end of 2005. The rationalisation of Bakers Oven in theNorth and Scotland, announced in August, is proceeding according to plan. As aresult, several divisions are focusing on re-branding and driving transferredshops and this has meant the deferral of a few planned openings, so that we nowexpect to achieve a net addition of 15 - 20 shops over the year as a whole. "Our results for the year as a whole will depend on performance in the remainingnine weeks of the second half, and particularly over the Christmas period.However, having regard to the progressively easier sales comparatives over theremainder of the year, we continue to believe that performance in the secondhalf will be closer to that of the comparable period last year than was the casein the first half. "We have made no further purchases of shares for cancellation since theannouncement of our interim results on 4 August. As we stated then, our pre-taxprofits for the year will reflect lower interest receipts as a result of totalexpenditure by the Company on share buybacks in the year to date of £38.7million, and further expenditure of £16.4 million by the Greggs Employee BenefitTrust. There will also be exceptional closure costs of some £2.5 millionassociated with the Bakers Oven restructuring. Earnings per share will benefitfrom the share buyback programme." ENQUIRIES:Greggs plc Hudson SandlerSir Michael Darrington, Managing Director Jessica Rouleau / Michael SandlerRichard Hutton, Finance Director Tel: 020 7796 4133Tel: 0191 281 7721 Keithhann.communications Keith Hann Tel: 07831 521870 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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