We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Premier Foods report 29 percent decline in profit


Hovis owners makes trading profit of £173.7 million

Article comments

Premier Foods reported a 29 percent decline in profits in 2011 and said 2012 will be a challenging year.

The makers of Hovis, Mr Kipling and Batchelors said on Monday it made a trading profit of £173.7 million. This compares with £245.7 million the year before.

The group also confirmed it had received backing from its banks and pension scheme partners for a four and a half year re-financing package which will extend its bank facilities of £1.4 billion until June 2016.

Its banking covenants have been re-set to support a new strategic plan, focusing on its major brands, and the company's pension schemes have agreed to defer deficit contributions until January 2014, Premier Foods said.

"We intend to draw a line under the performance of 2011," said chief executive Michael Clarke.

"Having put the financing and strategic building blocks in place, our immediate priorities are to implement this re-financing package, continue stabilising the business, re-focus the portfolio and invest in our future growth," he added.

Premier Foods, which said in January it would axe 600 jobs in the UK, is grappling with a hefty debt pile built up during a buying spree that was undermined by worsening trading conditions.

Its net debt stood at £995 million at the end of 2011.

Share:

Comments

Premier Foods report 29 percent decline in profit
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..


Tesco sees 6% decline in annual profit

UK market leader faces up to 1.4% fall in like-for-like salesmore ..

Yahoo on the right path, says CEO

Marissa Mayer’s comments follow a 20 percent decline in quarterly earningsmore ..

Debenhams to increase investment in distribution centre automation

The retailer wants to cut distribution costs as omni-channel demands risemore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *