East Mids dessert maker calls off flotation plans

A food supplier giant which has its regional head office in the East Midlands has called off plans to float on the London Stock Exchange.

In October, Bakkavor, which makes desserts in the region and has factories in Newark, Bourne and Spalding, said it hoped to raise £100m from an IPO, but this morning the firm has cancelled the plans.

A statement from Bakkavor said: “Bakkavor announces that it will no longer proceed with its plans for an initial public offering. Whilst the company received sufficient institutional demand to cover the offering, the Board has taken the decision that proceeding with the transaction would not be in the best interests of the company, or its shareholders, given the current volatility in the IPO market.

“Bakkavor will continue to pursue its proven strategy within the fast-growing fresh prepared food sector, where the Group’s expertise and focus on innovation have made it a clear market leader. The Group’s ability to deliver long-term sustainable growth is underpinned by its strong financial position. The business continues to trade well and against this backdrop, the Board remains confident in the outlook for the Group.”