Company Information for Hilton Food Group plc

AIM-HFG

http://www.hiltonfoodgroupplc.com

Company stock charts - 12 Month chart

AIM; HFG

View full financial data

Company Statement

Hilton Food Group is a leading specialist meat-packing business supplying major international food retailers, primarily Tesco, Ahold, Albert Heijn and ICA, from state of the art facilities located in the UK, Ireland, the Netherlands, Sweden and Poland.

Hilton’s business model is to source its Primal Meat from a local and global base of quality suppliers, which it then processes and packs in large scale, modern, central meat-packing plants for onward distribution by third party hauliers. These plants operate at the high volume levels necessary to produce competitive unit packing costs, whilst achieving the levels of hygiene, food safety assurance, shelf life and product quality required by the Group’s discerning customer base.

Rapid growth has been achieved both by geographical expansion, product range extensions and the underlying growth in the market achieved by Hilton’s retail customers. Hilton is now the largest dedicated packer of red meat in Europe based on revenue. With its headquarters in Huntingdon, Cambridgeshire the Group now employs approximately 1,200 people across its five European sites.

Strategy

Hilton’s strategy is to build on its strong historic growth, leveraging its established business model by focussing on the following key areas:

Expansion with existing customers

Given the success demonstrated by Hilton to date with its existing customers, the Directors believe that Hilton is well placed to build on its strong customer relationships by participating in new initiatives either via product extension or new product development in existing territories and via partnering with customers in their overseas expansion plans.

The Directors believe that the opening of Hilton’s operations in Ireland is a good example of how Hilton’s expertise in central meat packing can be replicated across different territories with existing customers. The Directors believe that Hilton is well positioned to continue expanding its operations with its existing customer base of major international food retailers.

Hilton works closely with its customers on both developing and extending the range of products it offers. The Group’s flexible supply and production chain allow it to add new production lines relatively easily, taking advantage of consumer-led trends, such as the growth in barbecue products. Hilton also works on developing innovative packaging to further develop its customers’ own label offerings.

Continual focus on cost and quality

Over the three years to 31 December 2006, Hilton has invested approximately £55 million in both new and existing facilities to increase capacity and enhance Hilton’s processing technology. Hilton maintains these facilities at the advanced technological level required for efficient operations that support high volumetric utilisation, thereby ensuring Hilton continues to maintain quality and remain cost competitive. Hilton maintains cost reduction initiatives across the Group with resultant savings shared between Hilton and its customers, improving customer satisfaction and stimulating demand for higher volumes.

New customers

Hilton continues to focus on opportunities for geographical expansion. Whilst its relationships with its existing customers have afforded Hilton the opportunity to expand with those customers, the Directors believe that Hilton’s track record and outstanding facilities also provide a credible basis for attracting new customers in new countries and exploring where Hilton’s business model can, appropriately adapted, produce economic advantages for both parties. Opportunities are identified by active consideration of market developments and evaluation of approaches from potential new customers.

Current Operations

Founded in 1994, Hilton began its business operating a beef and lamb central meat packing facility in the UK. In the last 13 years the business has grown rapidly through its strong customer relationships to become the largest dedicated packer of red meat in Europe based on revenue.

Geographical Spread

Employing appoximately 1,200 people, Hilton has factories across Europe, and opened a factory in Poland in 2006. The Group has operated in the UK since 1994, the Netherlands since 1999 and Sweden and Ireland since 2004, packaging beef, lamb and also pork. Growth has been achieved by geographical expansion and product range extensions as well as through the underlying growth in the market achieved by Hilton's retail customers.

For the year end 31 December 2006 66% of turnover came from Continental Europe – namely the Netherlands, Sweden, Ireland, and Central Europe with the remaining 34% deriving from the UK.

Board of Directors and Key Management

Robert Watson OBE	Chief Executive Officer

Nigel Majewski	Finance Director

Colin Patten	Commercial Director

Philip Heffer	UK & Ireland Managing Director

Theo Bergman	European Managing Director

Gordon Summerfield CBE	Non-Executive Chairman

Chris Marsh	Non-Executive Director

Sir David Naish DL	Non-Executive Director

Company Address

Hilton Food Group plc, 2-8 The Interchange, Latham Road
Huntingdon, Alderney, United Kingdom PE29 6YE


Telephone:	+44 (0) 1480 383333
Facsimile:	+44 (0) 1480 383333
Email:	info[at]hiltonfoodgroup.com
Website:	http://www.hiltonfoodgroupplc.com

Nominated Brokers

Panmure Gordon

Nominated Advisors