GROWTH IN THE UK FRESH PREPARED MARKET CONTINUED TO OUTPERFORM THE TOTAL FOODS MARKET. WE HAVE BENEFITED FROM OUR MARKET-LEADING POSITIONS WITHIN THIS SECTOR.

OUR UK LOCATIONS

  1. Caledonian Produce
    West Lothian
  2. Melrow Salads
    Merseyside
  3. Hitchen Foods
    Wigan
  4. Yorkshire Fresh Fruit
    Selby
  5. New Primebake
    Barton-on-Humber
  6. New Primebake
    Nantwich
  7. New Primebake
    Crewe
  8. Welcome Foods
    Huthwaite
  9. Laurens Patisseries
    Newark
  10. Bakkavor Spalding
    Spalding
  11. Freshcook
    Holbeach St Marks
  12. Cucina Sano
    Boston
  13. Bakkavor Meals
    Sutton Bridge
  14. Wingland Foods
    Sutton Bridge
  15. Bakkavor Pizza
    Holbeach St Marks
  16. Bourne Prepared Produce
    Bourne
  17. Bakkavor Meals
    Park Royal
  18. Bakkavor Meals
    Elveden
  19. Anglia Crown Ltd
    Colchester
  20. Tilmanstone Salads
    Dover
  21. Bakkavor Meals
    Wembley
  22. Bakkavor Pizza
    Harrow
  23. Alresford Salads
    Alresford
  24. Isleport Foods
    Highbridge

SEGMENT DESCRIPTION

Our UK businesses primarily manufacture private label fresh prepared food products on behalf of all major grocery retailers in the UK.

FACILITIES

We operate 32 facilities and employ 15,440 people.

MARKET POSITIONS

We have over 40 years' experience in the UK and and enjoy leading or number two positions in all of the 16 market categories in which we are present. We estimate our consolidated market share across the categories in which we operate in the UK is close to 30% and two times larger than that of our nearest competitor.

SALES PERFORMANCE

Our UK segment generated revenue of £1,407.0 million in 2012, 83% of Group revenue and a 1.4% increase on 2011. On a like-for-like basis however, we were pleased to deliver 5.5% growth in the year and 10.2% in the final quarter. This level of growth, which was ahead of the market, was due to the successful delivery of a strong seasonal offering and was supported by our capital investment strategy over the past two years and increased spend on innovation. This strong revenue performance also delivered double digit growth in adjusted EBITDA.

With regards to the full year, growth was almost entirely driven by increased volumes from promotional activity and new business. This was achieved despite a number of adverse factors, including subdued consumer spending and unusually poor weather throughout the spring and summer which impacted the sale of cold eat products.

ADJUSTED EBITDA PERFORMANCE

Adjusted EBITDA for the UK was £104.2 million, compared with £100.6 million in 2011, an increase of £3.6 million or 3.6%. Adjusted EBITDA margin increased by 20 basis points to 7.4% in 2012 as the UK benefited from increased sales and improved factory efficiencies, effective promotional management and factory efficiencies. This growth was also underpinned by the successes of our capital investment strategy in the past two years and increased spend on innovation.

KEY INNOVATIONS AND ACHIEVEMENTS IN 2012

Raising the benchmark for innovation within the industry is an integral part of our Group strategy as we focus on attracting consumers and stimulating sales. We created and launched over 1,300 products into the UK market during 2012 and won 11 industry food awards in recognition of our product development expertise.

In the UK our innovation pipeline was strong throughout the year as a direct result of targeted capital investments in key categories. In soups we extended our highly successful New York Soup Co range. Investment in our pizza category led to new business, including a major new range for one of our key retailer customers. Our investment in salad leaf processing technology further strengthened our market position.