July 24, 2006

Northern Foods reports slight revenue increase

British meat and food processor Northern Foods have seen revenue up on last year for the first three months, despite competitive trading conditions which squeezed profits.

The company said that in light of current conditions and changes in customer delivery preferences, the results from the first half of the year is expected to be lower than the second half.

Northern Foods Chairman, Anthony Hobson, said underlying revenue for the 13 weeks to Jul 1, 2006 was up 1.6 percent on-year.

Underlying revenue in those businesses grew 4.5 percent over the prior year.

The company's focus this year continues to be on restoring margins through its disposal programme, Chilled Division simplification, center-cost reduction, and rigorous capital and cash management, Hobson said.

A fire last week at one of the plants that Northern Foods is putting up for sale halted production. The company said any material property damage and business interruption loss is expected to be covered by the Group's insurance.