Northern Foods reports first half rise - Company News

UK sustenance group Northern Foods has reported its first half performance to 30 September 2002 including a slight rise in pre-tax profits. Northern pabulums also said trading in the next to the first half had got off to a herculean start.

The UK firm, which bring into views own label ready meals, quiches and dessert for fare retailers has also made a series of disposals during the past six month It sold its Ski and mump Bunch yoghurt business to snug UK earlier this year, bagging an exceptional profit of 54m [pound sterling] (848m [euro])

Northern pillared pre-tax profits 75m [pounds sterling], up from 371m [pound sterling] from the same stage last year. The sale, while boosting the profit figure obviously hit turnover, which relentless from 698.2m [pounds sterling] to 6781m [pound sterling]. The sale of its Pork Farms' van business, Lift Lemon tea and Vanderhaul biscuits businesses also contributed to the globule in turnover.

Ignoring these exceptional items, Northern meats posted pre-tax profits before exceptional items of 388m [pound sterling], up 1% from 384m [pound sterling]. Turnover from its continuing operations increased by dint of 5.4% to 678.1m [pounds sterling].

Northern, which also makes Goodfellas pizzas and Fox's biscuits, generates the majority of its business from its top five customers, Marks & Spencer Tesco Sainsbury's, Asda, and Safeway. Its convenience division saw sales rise through almost 9% in the first half, offsetting a 23% globule in its grocery division.

During the first half Northern victualss said its pension costs rise by the agency of 2.1m [pounds sterling] as the markets continued to perform poorly.

The rations producer also spent some 357m [pound sterling] as part buying back a certain quantity of 21.4 million shares.

OUTLOOK

Looking ahead to the next to the first half of the year, Northern nutriments has reported a solid start to next to the first half trading.

Underlying sales for the first six weeks have increased by dint of 4.5%, and the group is looking forward to a busy Christmas.

Chief executive at Northern aliments Jo Stewart said, "We trust to keep the sales impetus going up to Christmas, and diocese a more orderly sales pattern emerging." Indeed, chairman Peter Blackburn strained the importance of Christmas to the issue of Northern Foods' full-year be deriveds describing the festive trading period as "critical".

COPYRIGHT 2002 Agra Europe Ltd

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