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Geest - Prepared salad sales reckoned to be +20% in May & June

August 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.

The pre-close trading statement indicated a  recovery in prepared salads and removes the biggest worry holding back the shares.  As it was, Geest has reported that total sales grew 10% in the first six months, 8% excluding acquisitions. Within this, prepared foods grew 5-6% but is expected to be better in the second half as new business wins kick in. In salads, the picture was very positive although Geest was unnaturally coy about reporting actual sales growth. Most brokers suggest the first half saw a resumption of the low double-digit growth enjoyed in this side of the business. And the fact that June was the fourth hottest since 1976 is expected to have seen salad sales in the last two months rise 20%. That said, Gees ...

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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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