Revenue at Greencore up 8.7%

Greencore posted an 8.7 per cent rise in revenues to £804.2 million for the year ended September 30th, representing a 4.3 per cent increase on a like-for-like basis.

Greencore said pre-tax profits increased by almost one third to £35.47 million, up from £26.2 million in the previous year, even though “the UK and US food markets remain challenging”.

The results, which do not include recently-acquired UK business, Uniq, showed that operating profit for the year was in line with the previous year at £51.5 million.

Adjusted earnings per share were 13.9 pence, up 20.9 per cent, while a final dividend of 2.4 cent per share was paid.

The results were the first time Greencore has reported in sterling. It plans to move its primary listing to London early next year. More than 90 per cent of Greencore's revenues are generated in the UK.

Greencore's share's were trading close to 4 per cent higher this lunchtime, having fallen by more than 10 per cent yesterday following the announcement that talks with a prospective buyer had ended without agreement.

Greencore’s core division, convenience foods, performed well, despite challenging market conditions, posting an 8 per cent growth in revenues, or a 3.4 per cent increase in like-for-like terms.

“The business has made a good start to FY12 with revenue momentum in all of our major categories” the company said this morning, with the Uniq businesses trading in line with expectations and integration progressing to plan.

It noted, however, that the retail and economic environment remains challenging. Although input cost inflation is showing signs of moderating, it said, costs are expected to be modestly higher in 2012 than in 2011.