25th Sep 2007 07:00
Greencore Group PLC25 September 2007 CONTACT: Ms. C.M. Bergin TELEPHONE: +353 (0)1 605 1004 FAX: +353 (0)1 605 1104 PRE-CLOSE PERIOD UPDATE GREENCORE GROUP PLC ("Greencore" or "the Group"), one of Europe's leadingconvenience food and malt producers, today issues the following tradingstatement ahead of its financial year end on 28 September 2007. TRADING UPDATE The Group's expectations for current year earnings continue to improve. TheBoard now anticipates that adjusted earnings per share for financial year 2007will exceed the current market consensus level of 28.4 cent by approximately 5%.This further improvement in guidance since the Group's interim resultsannouncement on 31 May 2007 reflects a modest increase in anticipated Groupoperating profits, together with a reduction in the Group's tax charge,consistent with a change in the mix of Group profits. The Convenience Foods division has experienced a difficult second half of theyear, with unseasonal weather conditions in the UK, together with currentlyunrecovered raw material price inflation, contributing to an expected decline infull year operating profits of approximately 8% on FY06. Market conditionsremain challenging with significant further input cost inflation anticipated.Despite this, the Group is confident that the combination of strong operationalperformance, necessary pricing improvements (some of which have already beenagreed with customers), tight cost management and the delivery of key newcommercial initiatives will enable us to deliver good growth in FY08. The Ingredients and Related Property division has performed strongly in thesecond half of the year and is expected to deliver a significant increase onFY06 full year profitability. This improvement will more than offset the impactof the weak second half in Convenience Foods. Our Malt business, which suppliesleading international brewers and distillers, has strengthened as a result of animproved UK market structure, the benefits of restructuring investments made inFY05 and FY06, and an excellent operational performance this year such that itis now earning more acceptable returns. Profitability from each of the otheringredient businesses and from the disposal of small related properties is alsoanticipated to rise strongly year on year. We expect the excellent performance,evident across this division, to extend into FY08. On 31 August 2007, the Group completed the sale of its 50 per cent shareholdingin Odlum Group to Origin Enterprises plc, details of which were announced on 31July 2007. The Group is expected to record an exceptional profit on disposal ofEUR 24m in the current financial year. The Board is satisfied with Group performance in the year ending 28 September2007 and looks forward to reporting more fully when preliminary results areissued on 27 November 2007. RELATED PROPERTY UPDATE The Group continues to make good progress with respect to the unlocking of valuefrom its 970 acres of potential development property. In July 2007, our Mallowsite was allocated a zoning objective for high density mixed use and tourism/leisure use, with specifics now to be determined by agreement with Cork CountyCouncil. We await publication of the draft Carlow Town Environs Plan by CarlowCounty Council that will consider the 'Carlow Gateway' submission, made inNovember 2006. The promotional effort in Littlehampton, West Sussex, has madesignificant progress, albeit this development remains at an early stage.Finally, we have lodged a planning application for the first phase of a retailscheme on part of our 40 acre surplus site in Athy, with a second application tofollow in the coming months. Patrick CoveneyChief Financial Officer Greencore Group plcSt Stephen's Green HouseEarlsfort TerraceDublin 2 25 September 2007 FOR FURTHER INFORMATION, PLEASE CONTACT:Patrick Coveney, Chief Financial Officer Tel: +353 (0)1 605 1018Eoin Tonge, Capital Markets Director Tel: +353 (0)1 605 1018 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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