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Richmond Foods - Building branded ice cream business on strong unbranded core

January 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Helped by the acquisition of the UK confectionery business of Nestlein October 2001, profit before tax and exceptionals for the year ended 29 September advanced by 63% to £8.21m before a £980,000 exceptional charge. Sales were £116.7m which represented growth of 32% in 2002 including Nestle or down 1.5% on an underlying basis. Earnings rose 63%to 27.1p. Midway in the year, Richmond closed the former Nestlesite at Telford, transferring handheld production to its Crossgatessite in Yorkshire. At the same point, it integrated the salesfunction, reducing the number of salesmen previously employed byNestle. Integration of the Nestle business gave rise to an exceptionalcharge of £980,000 reflecting termination costs. R ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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