Produce Investments PLC Statement Re: Product Recall and Trading Update (8732G)

TIDMPIL

RNS Number : 8732G

Produce Investments PLC

11 August 2016

PRODUCE INVESTMENTS PLC

("Produce," "Company" or the "Group")

Statement Re: Product Recall and Trading Update

Produce Investments plc, (AIM:PIL), a leading operator in the fresh potato and daffodil sectors, is pleased to report that it has now concluded its position on the uninsured element of the claims relating to the product recall which affected one of its subsidiaries, Swancote Foods.

On 13 May 2015 we announced that Swancote Foods, our processing business, experienced a contamination issue relating to traces of metal being found in some product. This resulted in a recall of a number of potato salad and ready meal products. In our final results for the year ended 27 June 2015, we stated that we expected the financial impact from the uninsured element to be in the range of GBP0.3m to GBP1.5m and that this was not included in the financial statements due to a lack of certainty.

Working with our insurers and the affected customers we have recorded and finalised the claim with the total uninsured element amounting to GBP571,000. This amount will be included in our financial statements for the year ended 25 June 2016, as an exceptional item.

Our final results for the year to 25 June 2016 are due to be released on the 29 September 2016. We are pleased to announce that since we reported our interim results on 16 March 2016, trading has remained robust and the Board expects to report Full Year results that are in line with market expectations.

For further information contact:

 
 Produce Investments plc 
 Brian Macdonald                    01890 819503 
 
 Shore Capital & Corporate 
  Limited (Nomad) 
 Stephane Auton / Patrick 
  Castle                           020 7408 4090 
 
 Powerscourt 
 Nick Dibden / Sophie Moate 
  / Samantha Trillwood 
  produce@powerscourt-group.com    020 7250 1446

Notes to Editors

The Group is a vertically integrated company supplying blue chip customers such as Tesco, Sainsbury, Asda, Waitrose and Marks & Spencer with potatoes and daffodils.

Website: www.produceinvestments.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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August 11, 2016 02:01 ET (06:01 GMT)

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