Q3 Interim Management Statement

Transformation to a UK-focused business on track.

Uniq plc, the convenience food group, provides the following Q3 interim management statement reflecting trading up to September 25 2009.

Transformation on Track

 We announced in March our intention to seek consolidation opportunities for our Continental businesses and re-invest the proceeds in the UK operation and/or reduce the UK pension deficit and bank debt.

 We have made significant progress in implementing this strategy, having completed the sale of the French business on 7 October 2009 and are well advanced in the process of crystalising value for our Northern Europe division. Accordingly, we expect to have largely completed the transformation to a UK-focused business by the end of the year as planned. 

Trading Performance

Continuing Businesses

 The continuing businesses are the UK desserts business (based in Minsterley & Evercreech) and the Food to Go business (based in Spalding & Northampton).

 Q3 performance has reversed the first half loss to become profitable year to date, as the benefits of our desserts restructuring have begun to have a positive impact.  This is primarily through the successful transfer of business into our Minsterley factory from Paignton.  The closure of the Paignton facility is on track for completion later this month which will deliver further benefits in the fourth quarter.

 The overall sales decline has slowed, with sales in the third quarter down 0.7% on the same period last year - an improvement on the 1.7% decline in the first half.  Sales in Food to Go moved back into 4.7% growth as the extra sandwich business recently won with M&S came into production. Desserts sales fell 5.8% compared with last year in quarter three as a result of the increasingly competitive nature of the market, being driven by higher levels of promotional activity.  In response we are planning significant investment in our desserts business to improve our competitive position, funded out of the proceeds from the Continent. 

 Discontinued Businesses

The Northern Europe division had a very strong third quarter building on the improvement of the first half. Sales were 1.3% down in the third quarter compared with a 4.5% decline in the first half.  The rate of decline in sales in Germany reduced further from a rate of 8.8% in the first half to 4.7% in quarter three. In Poland, the strong performance continued with sales growth of 12.3%. In the Netherlands, the salad business further improved, reporting a sales decline of only 3.0%, whilst continuing the year-on-year improvement in profitability. The Netherlands sandwich business delivered sales growth of 2.6% in the third quarter.

 The French business reported a sales decline of 5.0% in the third quarter. This represented an improvement on the first half performance.

 Pension Fund

 The last major legacy facing the Group is the disproportionate scale of the main UK pension fund deficit, the details of which were set out in the annual report, and more recently in the interim statement at the half year.  We have commenced discussions with the Trustee of the main UK pension scheme to address this issue as part of the Scheme Specific Funding (SSF) process.  The result of these discussions will have a fundamental impact on the long term future of the UK business and on shareholder value.

 Financial Position

 As at 25 September 2009, the net debt of the Group was £53.8m. Since that date, proceeds of the Marie disposal have been received (£60.9m gross, £51.3m net of retentions and costs) and have paid down debt and cancelled £25m of the £60m bank facility. Had these proceeds been received by 25 September, the pro forma net debt would have been £2.5m, inclusive of £11m of cash held in a separate account pending investment in the UK business or agreement on SSF with the pension Trustee.

 Outlook

 We have made significant progress in implementing our modified strategic plan.  The Board expects to have largely completed the transformation to a UK-focused business by the end of the year and to deliver a full year result in line with its expectations for the continuing businesses. 

 For further information:

 Uniq plc                                                     

+44 (0)1753 276011

Martin Beer        Finance Director

The Hogarth Partnership         

+44 (0)20 7357 9477

Julian Walker