(GRG.L) Greggs PLC Buy/Sell

RNS Number : 9834B Greggs PLC 04 November 2009

Financial Services Authority

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer Greggs Plc

of existing shares to which voting rights are attached:

2. Reason for the notification (please tick the appropriate box or boxes):
An acquisition or disposal of voting rights Yes

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached.

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the Legal & General Group Plc (L&G)

notification obligation:
4. Full name of shareholder(s) Legal & General Assurance (Pensions Management) Limited
(if different from 3.): (PMC)
02 November 2009

5. Date of the transaction and date on which the threshold is crossed or reached:

6. Date on which issuer notified: 04 November 2009
7. Threshold(s) that is/are crossed or From 3% - 4% (L&G)

reached:

8. Notified details:

A: Voting rights attached to shares
Class/type of Situation previous Resulting situation after the triggering transaction
shares to the triggering
transaction

if possible using the ISIN CODE
Number Number Number of voting % of voting rights
of of Number rights
Shares Voting of shares
Rights
Direct Indirect Direct Indirect
ORD 4,159,118 4,159,118 4,331,296 4,331,296 4.16

GBP 0.02

B: Qualifying Financial Instruments Resulting situation after the triggering transaction
Number of voting
Type of financial Expiration Exercise/ rights that may be % of voting
instrument date Conversion Period acquired if the rights
instrument is
exercised/ converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction

Type of financial Exercise price Expiration date Exercise/ Number of voting rights instrument refers to % of voting rights
instrument Conversion period
Nominal Delta

Total (A+B+C)
Number of voting rights Percentage of voting rights
4.16
4,331,296

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: Legal & General Group Plc (Direct and Indirect) (Group) Legal & General Investment Management (Holdings) Limited (LGIMH) (Direct and Indirect) Legal & General Investment Management Limited (Indirect) (LGIM) Legal & General Group Plc (Direct) (L&G) (4,331,296 - 4.16 % = LGAS, LGPL
& PMC)
Legal & General Investment Legal & General Insurance Holdings Limited

Management (Holdings) Limited (Direct) (LGIH) (Direct) (LGIMHD) (4,010,246 - 3.85 % = PMC)
Legal & General Assurance Legal & General Assurance Society Limited
(Pensions Management) Limited (LGAS & LGPL)

(PMC) (4,010,246 - 3.85 % =

Legal & General Pensions Limited (Direct)

Proxy Voting:
10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease

to hold:

12. Date on which proxy holder will cease to hold

voting rights:

13. Additional information:
Notification using the total voting rights figure of 103,990,470
14. Contact name:
Helen Lewis (LGIM)
15. Contact telephone number:

This information is provided by RNS The company news service from the London Stock Exchange

HOLUSVNRKVRARAA

HIGH STREET DISCOUNTS HIT WEB SALES

According to a study by IMRG, which represents online retailers, and Capgemini, the IT services company, discounting by retailers on the high street is eating into the growth in online spending.

Internet sales rose by 1.9 per cent between August and September, the lowest monthly growth recorded since the launch of the survey in 2000.

Capgemini's head of retail, Chris Webster, said, "This is the lowest growth we have seen, for two main reasons: people weren't buying their seen, for two main reasons: people weren't buying their autumn/winter clothes because September was so warm; and because of promotional activity on the high street."

HARMAN VOWS TO END MEN-ONLY BOARDS

Harriett Harman told MPs at a Commons Treasury Committee inquiry into sexism in the City that the government would have to look at measures to combat the 'nightmare' of men-only boards at City companies if businesses fail to take action voluntarily.

The women's minister said that she hoped Sir David Walker's review of corporate governance, due to be published next month, would promote gender equality in the board room as an important factor in risk management.

KING CALLS FOR BANKS' FUNCTIONS TO BE SPLIT

On Tuesday, Bank of England governor Mervyn King called for the splitting of banks into separate utility companies and risky ventures in order to prevent their becoming "too important too fail".

The call for a break-up places King in opposition to the Treasury and the Financial Services Authority, which have both specifically rejected the idea of breaking up banks.

International regulatory trends are also geared towards raising the quantity and quality of capital at financial institutions rather than breaking them up.

INCHCAPE RAISES FORECAST AFTER SCRAPPAGE DEALS

In its third quarter trading statement, Inchcape said that its full year results will be "significantly better" than expected, although the car dealer cautioned that the market looked less robust going into 2010.

For the three months to September 30, turnover fell 13.4 per cent compared with the same period last year. However, this represented a 2.2 per cent increase on figures for the second quarter, indicating that the market may be bottoming out.

HEYWOOD'S RESTRUCTURING HOPES LEFT IN TATTERS

On Tuesday, Heywood Williams entered into a pre-pack administration agreement. Under the terms of the pre-pack, 80 per cent of the building products manufacturer will be owned by the company's lenders - who in return will write off 40 per cent of the company's debt claims.

The agreement will also see the company provided with six million pounds in fresh funding, 10 per cent of which will be contributed by Heywood's directors and 10 per cent from the company's 1,000 employees.

GREGGS PLOTS BOLD EXPANSION

Greggs has announced plans to increase the company's current rate of expansion by opening 600 new stores over the next few years.

The bakery chain expects to spend up to 300 million pounds on expansion in the next five years, financing the investment through cash.

Like-for-like sales at the company rose 0.2 per cent during the 16 weeks to October 17, in line with management expectations but slightly below some analysts' forecasts.

QATARIS SELL 3.5 PER CENT STAKE IN BARCLAYS FOR 1.4 BILLION

POUNDS

Qatar Holding, Barclays' biggest shareholder, sold a 3.5 per cent stake in the bank on Tuesday in a deal worth 1.4 billion pounds.

The Qataris made a 615 million pound profit on the deal and may use the funds to increase their 26 per cent stake in UK supermarket group J Sainsbury.

Credit Suisse placed 379 million Barclays shares in the market at 360 pence, a six per cent discount on Monday's closing price. Shares closed down almost five per cent at 363.75 pence.

PRUDENTIAL CONSIDERS SEPARATE ASIA LISTING

UK insurer Prudential is thought to be conducting a preliminary assessment of the likely benefits of a separate listing in Shanghai or Hong Kong.

The firm saw strong demand for a 750 million dollar hybrid capital raising in Asia this year and a listing could be used to raise capital to further the bank's ambitions in the region.

HSBC is expected to be the first foreign company to list in Shanghai after regulations are reformed next year.

CADBURY BRACED FOR KEY UPDATE

A third-quarter trading update from Cadbury is expected to show strong top-line sales growth. Analysts believe that Cadbury will use the Wednesday update to bolster its defence case against Kraft, which has until November 9 to submit a bid for the confectioner.

Bernstein Research analyst Andrew Wood believes that Cadbury could highlight its value as a standalone group by raising its guidance on full-year organic revenue to the "middle" of the four-to-six per cent range.

PEARSON RAISES FULL-YEAR GUIDANCE

Pearson, owner of the Financial Times, raised its full-year earnings guidance on Tuesday after its education business showed "substantial" growth in digital services.

Sales for the nine months to September were up 20 per cent, or two per cent at constant exchange rates. Operating profit for the period was up 19 per cent, three per cent at constant rates.

Pearson revised its forecast for full-year adjusted earnings per share from the 57.7 pence predicted in July to "at or above 60 pence per share".

Prepared for Reuters by Durrants
Keywords: PRESS DIGEST Financial Times

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

HIGH STREET DISCOUNTS HIT WEB SALES

According to a study by IMRG, which represents online retailers, and Capgemini, the IT services company, discounting by retailers on the high street is eating into the growth in online spending.

Internet sales rose by 1.9 per cent between August and September, the lowest monthly growth recorded since the launch of the survey in 2000.

Capgemini's head of retail, Chris Webster, said, "This is the lowest growth we have seen, for two main reasons: people weren't buying their seen, for two main reasons: people weren't buying their autumn/winter clothes because September was so warm; and because of promotional activity on the high street."

HARMAN VOWS TO END MEN-ONLY BOARDS

Harriett Harman told MPs at a Commons Treasury Committee inquiry into sexism in the City that the government would have to look at measures to combat the 'nightmare' of men-only boards at City companies if businesses fail to take action voluntarily.

The women's minister said that she hoped Sir David Walker's review of corporate governance, due to be published next month, would promote gender equality in the board room as an important factor in risk management.

KING CALLS FOR BANKS' FUNCTIONS TO BE SPLIT

On Tuesday, Bank of England governor Mervyn King called for the splitting of banks into separate utility companies and risky ventures in order to prevent their becoming "too important too fail".

The call for a break-up places King in opposition to the Treasury and the Financial Services Authority, which have both specifically rejected the idea of breaking up banks.

International regulatory trends are also geared towards raising the quantity and quality of capital at financial institutions rather than breaking them up.

INCHCAPE RAISES FORECAST AFTER SCRAPPAGE DEALS

In its third quarter trading statement, Inchcape said that its full year results will be "significantly better" than expected, although the car dealer cautioned that the market looked less robust going into 2010.

For the three months to September 30, turnover fell 13.4 per cent compared with the same period last year. However, this represented a 2.2 per cent increase on figures for the second quarter, indicating that the market may be bottoming out.

HEYWOOD'S RESTRUCTURING HOPES LEFT IN TATTERS

On Tuesday, Heywood Williams entered into a pre-pack administration agreement. Under the terms of the pre-pack, 80 per cent of the building products manufacturer will be owned by the company's lenders - who in return will write off 40 per cent of the company's debt claims.

The agreement will also see the company provided with six million pounds in fresh funding, 10 per cent of which will be contributed by Heywood's directors and 10 per cent from the company's 1,000 employees.

GREGGS PLOTS BOLD EXPANSION

Greggs has announced plans to increase the company's current rate of expansion by opening 600 new stores over the next few years.

The bakery chain expects to spend up to 300 million pounds on expansion in the next five years, financing the investment through cash.

Like-for-like sales at the company rose 0.2 per cent during the 16 weeks to October 17, in line with management expectations but slightly below some analysts' forecasts.

QATARIS SELL 3.5 PER CENT STAKE IN BARCLAYS FOR 1.4 BILLION

POUNDS

Qatar Holding, Barclays' biggest shareholder, sold a 3.5 per cent stake in the bank on Tuesday in a deal worth 1.4 billion pounds.

The Qataris made a 615 million pound profit on the deal and may use the funds to increase their 26 per cent stake in UK supermarket group J Sainsbury.

Credit Suisse placed 379 million Barclays shares in the market at 360 pence, a six per cent discount on Monday's closing price. Shares closed down almost five per cent at 363.75 pence.

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

RNS Number : 0434B
  Greggs PLC
  20 October 2009
   

    

20 October 2009

GREGGS plc

INTERIM MANAGEMENT STATEMENT

Greggs is the leading bakery retailer in the UK, with 1,400 retail outlets serving six million customers per week throughout the country.

TRADING UPDATE

Robust performance in a challenging market

So far in our current financial year (42 weeks ending 17 October 2009) total sales have increased by 3.8 per cent and like-for-like sales by 1.0 per cent, in line with our expectations.  

In the first 16 weeks of the second half, up to 17 October, total sales have increased by 2.5 per cent and like-for-like sales by 0.2 per cent. Selling price inflation is falling and is now running at its lowest level for five years, whilst our underlying volumes have remained in line with those of the first half.

Cost inflation is easing overall, in line with our expectations. This year's good wheat harvest and reduced energy costs are contributing to this positive trend, which is partly offset by continued cost increases in some ingredients, particularly meats. 

Overall business performance in the year to date is in line with our plans and our financial position remains strong.

Chief Executive Ken McMeikan commented "I am pleased with our sales performance against the background of continued tough high street trading conditions. We are committed to helping our customers make their budgets stretch as far as possible and the exceptional value we offer, combined with the freshness, quality and taste of our products, is a key strength.  We are on track to deliver our targets for the year although the final outcome will depend on consumer sentiment and spending over the important Christmas period."  

BUSINESS STRATEGY UPDATE

Delivering Growth

During 2009, we have been progressively simplifying our business and building the foundations for future growth.

Key to this has been:

*     Creating one brand by converting our Bakers Oven shops to the Greggs fascia

*     Withdrawing from our Belgian business

*     Harmonising our product range to be 80 per cent national and 20 per cent local

*     Completing the change from a decentralised to a centrally-run business

Great progress has been made against all of these objectives. This now puts us in a strong position to bring the qualities of the Greggs brand and product offer to many more customers.

Our Brand:

Greggs offers an exclusive product range with a strong reputation for quality and value. We make all our sandwiches fresh in our shops each day by hand, bake our savouries 'little-and-often' to deliver great taste and quality, and provide bread, rolls and confectionery fresh from our bakeries each day. Our customers value this highly and we will place increasing emphasis on our freshness and bakery skills in our national advertising.

Accelerated Shop Expansion:

The growth opportunities within the UK are significant. It remains our belief that a further 600+ shops can be opened in the medium term with little cannibalisation of sales from our existing shops. This will take our shop numbers above 2,000, making us accessible to many more consumers and creating some 6,000 new jobs.

We see opportunities for expansion across the UK but particularly in areas where we are currently under-represented or have no presence at all.  Southern England (particularly the South West), the East Midlands, North East Scotland, North West England and North Wales are good examples of areas with further potential for us.

We also see the continued opportunity to expand into locations where consumers work and travel such as transport hubs and industrial and retail parks, in addition to our more traditional presence on high streets.

We intend to open 50-60 (net) new shops in 2010 and from 2011 onwards at least 70 (net) per annum.  This is more than double our historic rate of new shop opening.

At the same time, we plan to double the rate of shop refits to 120 per annum from 2010, allowing us to improve the ambience of our shops, accelerate the roll-out of successful service innovations and increase the accessibility of our products.  This will drive further growth from our existing estate as well as from new shop openings.

A Supply Chain with further potential:

Our supply chain is built around regional bakeries that provide fresh products and distribution services to our shops around the country. These are supported by a national savoury manufacturing facility and two national distribution centres.  We have undertaken a fundamental review of our supply chain to determine how we can achieve the optimal production and distribution network to support our planned growth of an additional 600+ shops.

The review has re-evaluated the costs and performance of our integrated bakery and logistics model on a number of different bases, including comparison with outsourced alternatives. The review has concluded that continuing to make and bake our own products is a competitive advantage as well as being a profitable part of our business. It has also highlighted the potential for us to supply substantially more shops through our existing supply chain, thus achieving significant efficiency improvements.

To fulfil this potential we plan to:

*     Renew older bakeries to improve quality, efficiency and capacity for growth

*     Extend other bakeries to facilitate greater expansion than previously planned

*     Provide the capability for new shop growth in the South by replacing our bakery in Twickenham

*     Build an additional new bakery to support growth in the South of England.

Our supply chain is central to the Greggs offer and provides a great foundation on which to build for the future.

Financial impact:

The development of our supply chain will require an increase in capital expenditure over the next 3-5 years but deliver eventual annual efficiencies of at least £10 million per annum.

We have previously highlighted some of the benefits that we are beginning to see from the simplification of the business and we expect this momentum to continue as the business grows.

The growth that we expect from accelerated shop expansion will progressively contribute to performance as new shops mature and as we raise awareness of our brand in new areas.

Overall we expect that our plans to deliver shop growth and greater efficiency will require total capital expenditure in the business to rise to between £50 and 60 million per annum during this period. We will finance this investment from our ongoing cash generation.

The Future:

Chief Executive Ken McMeikan commented: "The fact that Greggs is a baker, with wholesome, tasty products that are made in our own bakeries and shops remains a key point of difference versus our competitors. This gives us a great opportunity to attract new customers who are less familiar with the brand, particularly as we move into areas where we are new or under-represented.  Although high street trading conditions remain tough we are building for the long term and remain confident in our ability to build an even stronger, more profitable business.  We look forward to making the unique Greggs proposition available to many more customers throughout the UK as we embark on our major programme of accelerated expansion." 

 ENQUIRIES:
 Greggs plc                        Hudson Sandler
 Ken McMeikan, Chief Executive     Wendy Baker / Hugo Jenkins
 Richard Hutton, Finance Director  Tel: 020 7796 4133
 Tel:        0191 281 7721

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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