AB Foods Regulatory News (ABF)

6 Feb 2008 14:30

Associated British Foods PLC06 February 2008 Associated British Foods plc Confirmation of permanent renunciation of 13.5% of UK sugar quota by British Sugar For immediate release 6 February 2008 Associated British Foods plc ("ABF"), the international food, ingredients andretail group, announces that the application by British Sugar to renouncepermanently 165,000 tonnes of UK sugar production from October 2008 has beenaccepted by the Rural Payments Agency. This is 13.5% of the UK national quota.The total for the renunciation of permanent quota across the EU is expected tobe announced by the European Commission in the coming weeks. The compensation will be €93m (£69m) payable to British Sugar in two instalmentsof €31m by June 2009 and €62m by February 2010. Payment is subject to thenormal audit processes of the Commission. As expected there will be relief fromthe restructuring levy on the renounced quota in the 2007/8 marketing yearamounting to €29m (£22m). This compensation will be shown as an exceptional credit in the group's incomestatements. Following this announcement, the unamortised cost arising from thepurchase of additional quota of 83,000 tonnes in 2006 and costs relating to theclosure of the York factory will be charged as an exceptional item totallingsome £45m. A separate decision is awaited in respect of the application to renouncepermanent quota of 26,000 tonnes in Poland. The financial consequences of thiswill also be treated as an exceptional item. For further information please contact: Associated British Foods Tel: +44 (0)20 7399 6500John Bason, Finance Director Citigate Dewe Rogerson Tel: +44 (0)20 7638 9571Jonathan Clare / Chris Barrie / Hannah Seward This information is provided by RNS The company news service from the London Stock Exchange