com:20091015:RnsO8000A
                                                                                                                       .
RNS Number : 8000A  
  
Uniq PLC  
  
15 October 2009  
  
15 October 2009  
  
UNIQ plc  
  
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   
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
IMSEAXELFAENFFE