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Inter Link Foods - Acquires 50 year old malt loaf brand

February 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.

When we looked at InterLink in last May's issue, the shares had spurted ahead following a number of very earnings enhancing acquisitions. Since then the price has drifted back before taking a thump following the announcement of results for the six months to 31 October that were accompanied with an acquisition and an associated placing and open offer. The interim results were in line withmarket expectations with sales up 9% to £24.55m including oneadditional month from Lusty. Profit before tax and goodwill was up 11%to £1.61m and eps by 10% to 17.2p. What spooked the market was thehefty discount (15%) to the share placing and the slightly cautiousoutlook with trading in the runup to Christmas less than anticipated.Interlink ...

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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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