Greggs Regulatory News (GRG)

4 Nov 2005 07:00

Greggs PLC04 November 2005 4 November 2005 GREGGS plc AUTUMN TRADING UPDATE Greggs is the UK's leading retailer specialising in sandwiches, savouries and other bakery products, with a particular focus on takeaway food and catering.It has over 1,300 retail outlets throughout the UK, trading under the Greggs and Bakers Oven brands. Group Managing Director Sir Michael Darrington reports: 'Group like-for-likesales since the start of the second half (the 19 weeks to 29 October 2005) haveincreased by 2.8%. After an increase in the first six weeks to 30 July of 3.0%,as already reported, sales trends improved slightly for a period with the onsetof more favourable weather. However, this has been more than offset by poorerperformance in recent weeks. Trading conditions have proved less positive than we expected at the time of ourinterim results announcement in August, and we believe that this is attributableto the well-publicised weakness of the retail market as a whole. This isresulting in lower footfall on the high street, which is affecting both ourbrands but having a greater impact on Bakers Oven, whose format is more exposedto the effects of reduced consumer traffic. Energy costs have risen, as expected, but we are taking action across the Groupto control all our variable costs in the light of the more challenging salesenvironment. Profits in the second half to date remain below budget and the level of lastyear. The final outturn for the period depends on performance in the weeksahead, and particularly over the Christmas period. However, given the goodfirst half, I believe that we will make modest progress over the year as awhole. So far this year we have opened a net 49 new shops, taking us to a total of1,312 at 29 October. Further openings are scheduled before Christmas and weexpect to approach 60 net openings over the year as a whole. This is ahead ofour stated targets and reflects our confidence in the long term prospects forthe Group.' ENQUIRIES:Greggs plc Hudson SandlerSir Michael Darrington, Managing Director Wendy Baker / James HillMalcolm Simpson, Financial Director Tel: 020 7796 4133Tel: 0191 281 7721 keithhann.communications Keith Hann Tel: 07831 521870 This information is provided by RNS The company news service from the London Stock Exchange