Hibernia Foods, the Dublin-headquartered but US-listed food group, has said it is working on a number of financial transactions designed to strengthen its balance sheet.

Chief financial officer Mr Colm Delves said Hibernia expected to announce the outcome of this process in September. "The overall thrust of it is to reduce our current debt profile," he said. However, he added it would not involve a public offering of shares.

The company, which produces cakes, frozen desserts and private-label ready-meals, reported an operating loss of €6.7 million for fiscal 2003, down from €7.8 million a year earlier. This excludes one-time charges of €4.7 million relating to the closure of the company's Bristol site and other restructuring. A further €4.8 million in charges will be recognised in the first half of fiscal 2004.

Sales in the period slipped to €200.6 million from €201.3 million. However, Hibernia said this was entirely due to the appreciation of the euro against sterling. Underlying revenues were up by 4 per cent, the company said.

Hibernia said it had focused on integrating the Sara Lee dessert business with its frozen desserts business in 2003 and the turnaround of its ready meals division, which delivered a €2.7 million improvement in profits. This led to an improvement in the second half and, particularly, the fourth quarter performance, when the firm reduced losses before exceptionals by €5.1 million.

Chairman and chief executive Mr Oliver Murphy said, looking forward, first-quarter sales were expected to show high single-digit underlying growth.