Northern Foods hails good trading figures
NORTHERN Foods, the owner of Hollands Pies and Foxes Biscuits,elivered a positive Christmas trading performance as it reiterated its belief that a merger with Irish convenience food group Greencore is best for both businesses.
In its third quarter – the period covering the 13 weeks to January 1 – Northern said group like-for-like sales increased by 2.3%, reflecting a “good trading performance” over the festive period, despite the poor weather.
Northern said both it and Greencore believe that the proposed merger betwen the two, to create a brand called Essenta Fods, is a “compelling opportunity” for both companies.
Midlands-based Harry Ramsden owner Ranjit Boparan was told earlier this month by the Takeover Panel to make an offer for Northern Foods or walk away.
Northern Foods’ board confirmed last month it had received an approach via letter from Boparan Holdings asking for information about the company following suggestions Mr Boparan was ready to make a £300m bid for the firm.
Mr Boparan has since claimed Northern needs to be taken private in order for the group to grow.
In a trading statement this morning, Northern said its chilled division, which makes up around 50% of group revenue, performed well over the third quarter, thanks largely to the popularity of ready meals.
Like-for-like sales in bakery were up 5% as Christman puddings sold well but frozen like-for-like sales were down 17.2%.
Simon Herrick, acting chief executive of Northern Foods, said: “Overall, Northern Foods has continued to trade in line with market expectations, despite tough market and weather conditions.”
