27th Sep 2006 07:01
Greencore Group PLC27 September 2006 CONTACT: CAROLINE BERGIN TEL: +353 (0)1 605 1004 PRE-CLOSE TRADING UPDATE GREENCORE GROUP PLC ("GREENCORE") (IEX; GNC), the leading European conveniencefoods group, today issues the following trading statement ahead of its year-endon 29 September 2006. TRADING UPDATE The Group's expectations for the current year remain in line with previousguidance. Convenience Foods, our principal business division, continues to trade well. Weexpect operating profits for the division to match the market consensus level ofEuro 68.6 million, representing continuing operating profit growth of in excessof 5% for the full year. This performance will be delivered despite significantcost pressures, the most noteworthy of which is energy inflation costs of morethan Euro 5 million. We expect strong second half trading to compensate forlower profit growth reported in the first half. To date, second half tradinghas delivered revenue growth of more than 7% and operating margin levels thatare broadly in line with the prior year. We expect the Ingredients, Agribusiness and Related Property division to deliverprofits above the current market consensus of Euro 25.2 million. Since weannounced our decision to exit sugar processing on 15 March 2006, GreencoreSugar has traded above our expectations. This stronger than anticipated profitperformance in Sugar has compensated for a continued weakness in EU maltmarkets, a weakness compounded in the case of Greencore Malt by nearly Euro 4million of energy price increases. The combined performance of the two operating divisions is expected to be aheadof market consensus. However, these gains will in part be offset by a higherthan anticipated increase in the Group's tax charge, reflecting a greater thanexpected share of Group profits earned in the UK. SUGAR RESTRUCTURING AID UPDATE As announced on 28 July 2006, Greencore has been granted leave by the High Courtto challenge the Irish Government's decision on the allocation of the Euro 145million EU Restructuring Fund. This Fund was put in place to compensate sugarrefiners forced to leave the industry as a result of EU sugar regime reform. On31 July 2006, Greencore formally applied for restructuring aid by submitting arestructuring plan to the Irish Government (in accordance with EU Regulations320 and 968). As required by EU Regulations, this plan was deemed "complete" bythe Irish Government on 8 August 2006. Greencore has since agreed with the Irish Government that, conditional uponGreencore's restructuring plan being approved, the Group will amend the plan toreflect any lawful decision of Government taken pursuant to the outcome of ourlegal proceedings. On 19 September 2006, the Government deemed Greencore'srestructuring plan to be "eligible" for restructuring aid. This decisionensures that the payment of EU aid can begin in June 2007. Patrick CoveneyChief Financial Officer Greencore Group plcSt Stephen's Green HouseEarlsfort TerraceDublin 2 27 September 2006 FOR FURTHER INFORMATION, PLEASE CONTACT:Patrick Coveney, Chief Financial Officer Tel: +353 (0)1 6051018Eoin Tonge, Group Capital Markets Director Tel: +353 (0)1 605 1036Billy Murphy/Anne-Marie Curran, Drury Communications Tel: +353 (0)1 2605000Rory Godson/Victoria Brough, Powerscourt Tel: +44 (0)207 236 5615 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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