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:

Recommended Articles

Comments

Premier Foods report 29 percent decline in profit
Financial Planning

Could CFOs do more to boost shareholder value?

Could CFOs do more to boost shareholder value?

Working capital improvements start to pay off, but more could be donemore ..


Amazon slashes Fire Phone price ahead of iPhone 6 launch

Amazon today slashed the price of its three-month-old Fire Phone to 99 cents, an obvious bid to boost slow sales.more ..

Betfair mobile revenues spike during 'record' quarter

App use grows by 162 percent during World Cup periodmore ..

Samsung acquires cloud printing company PrinterOn

The acquisition aims to boost Samsung's business-to-business mobile offeringsmore ..

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..

Budget: What business wants

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

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
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *