Profits dip at Northern Foods

THE owner of Lancashire’s iconic Holland’s Pies has reported a 5% dip in profits.

Northern Foods, which is the biggest supplier of food to high street heavyweight Marks & Spencer, said like-for-like pre-tax profit for the year to March 28 fell slightly from £50.1m to £47.5m reflecting a reduced pension credit.

Revenue rose from £931.9m to £975.2m for the period. Adjusted earnings per share gained slightly rising from 7.76p to 7.88p.

Holland’s, which is based in Baxenden near Accrington, was founded in 1851. Around 400 people work at the factory, which produces more than 80 million pies, puddings and pastries every year.

Holland’s said it ontinued its recovery plan, through product improvement and effective press promotion. It has re-focused on its core chip shop outlets and is looking to increase distribution in foodservice and at sporting venues.

Northern Foods also announced it was looking to close its Hull-based ready meals factory as contracts with its main customer are to be terminated.

The proposal includes consultation to move a proportion of production to other facilities. It is not yet clear how many staff will be affected.

The decision follows the conclusion of negotiations to seek mutually “acceptable and commercially” viable terms for business.