Uniq plc Trading Update for year end 31 December 2007 - Significant second half improvements delivered

Uniq, the European Convenience Foods Group, gives the following update on trading, ahead of its preliminary results for the year to 31 December 2007 which will be announced on 25 March 2008.

Overall Group sales for the full year have grown by around 3% and the Group has improved margins significantly and achieved trading profitability in the second half of the year.

The UK operation has returned to profit in the second half, sufficient to more than offset the loss in the first half. Sales growth was lower in the second half and was approximately 3% for the year as a whole. Ahead of the important Christmas period, the Group renegotiated prices to recover the exceptional increases in dairy and wheat costs which came through from late summer. Excellent Christmas customer service levels and tight cost control measures have resulted in improved margins.

Progress in Northern Europe in the second half has been disappointing with a sales decline of 2%, resulting in flat sales for the year as a whole with losses in line with last year. This deterioration in performance has been most pronounced in the Netherlands where a new management team has been appointed to address weak commercial performance. Poland has continued to deliver the dramatic growth that was achieved in the first half, albeit at the expense of margins, as the Poznan production site experienced severe pressure to keep pace with the increased demand. In Germany we have continued to reduce losses broadly in line with our expectations.

In France the rate of sales growth has improved to around 5% for the full year, reflecting the return to growth in the Group’s branded frozen business and continuing strong growth in the chilled business. The French business has also returned to profit in the second half, in line with expectations, despite higher raw material costs which are now being recovered as part of the annual negotiations.

Geoff Eaton, CEO of Uniq, said, “In the face of some tough conditions in the 2^nd half of the year I am pleased with the progress we have been able to make in 2007. The significant structural and operational changes we have implemented over the last two years and our improved balance sheet mean we are better equipped to deal with the increased challenges of a difficult economic environment and trading uncertainties in 2008. We remain confident that we will continue to unlock the potential of Uniq.”