Pole position for food manufacturer
NEW contracts, increased investment and a strong performance from its bakery division has boosted Northern Foods.
The Leeds-based food manufacturer reported today a slight rise in revenue for the year ended April 3 from £975m to £977m.
Underlying profit before tax, which excludes the impact of the non-cash net pension financing, rose to £39.2m from £39m despite a foreign exchange headwind of around £3m from a stronger euro.
Profit from operations however rose to £54.6m from £52.7m driving an increase in underlying earnings per share to 6.99p.
Net cash flow from operations after interest and tax rose to £68.8m After £26m of capital expenditure and £20m of dividend payments net debt has reduced to £183.0m from £206.7m the year before.
Northern Foods said that its increased investment in brands, automation, food science and technology positioned the firm for continued growth.
It added that the last financial year had seen the firm strengthen its capabilities by exiting low margin contracts, improving operational efficiencies and recruiting new talent.
In April, the firm announced it will close its Ethnic Cuisine ready meals factory in Swansea.
Earlier in the year Northern Foods announced a £26.5m investment in its Fox’s biscuits brand.
During the period the firm has established itself in pole or second position for ready meals, sandwiches and salads, frozen pizza and pies, biscuits and Christmas puddings.
Key contracts secured include a 10 year contract to supply British Airways on its short haul routes from London Heathrow.
The manufacturer has also recruited five scientists – one per business unit – to support its chief scientist and gain advantage on its competitors.
Northern Foods said: “Northern Foods has traded solidly in challenging market conditions. We expect these conditions to continue, but we remain well positioned for the future.
“Even during these uncertain economic times we continue to invest in brands, cost efficiency and technology to deliver long term shareholder value supported by our strong financial position.”
