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Richmond Foods - Sales up 30% for year just ended

November 2002

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.

In a pre-close update, Richmond Foods, the second largest ice cream manufacturer in value terms, has announced that results for the year to30 September will be in line with market expectations. Broker, Numis, is forecasting a rise in sales from £88.5m to £116m reflecting a strongcontribution from Nestle branded sales and the first full year cost benefits of the site rationalisation which took place during 2001. The profit forecast is £7.9m before exceptional items for earnings of 25.3p. Results are due on 27 November. We tipped the shares at 294p in August. Hold. ...

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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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