27 September 2010 – update on disposal

A further £0.5m net of costs has been received in respect of the disposal of The Baked Snacks Company Limited, which is currently in administration. Although no further consideration is now expected, no amount had been recognised in the Group accounts in respect of deferred consideration, so there will be an adjusting item in the accounts for the current financial year. We continue to believe that the shares look undervalued, trading on less than 6 times forecast earnings for 2010/11. With new 4 year bank facilities recently secured, we rate Zetar as a BUY.