Financial information

This section provides the latest financial information from Northern Foods as reported at the 2007/08 half year results on 13 November 2007.

 

Operating highlights

• Continued progress against all elements of the performance improvement plan
• Chilled improvement continues, with underlying revenue up 5.4% and operating margin up by 200 basis points 
• Repositioning of Fox's progressing on plan
• Launch of Goodfella's into the chillled category with 'Goodfella's Signatore'
• Recovery of recent commodity cost increases agreed

Financial highlights

• Profit before tax* up 37.7% at £20.1m, with adjusted earnings per share⁽¹⁾ (eps) 34.3% ahead  at 3.21p
• Profit from operations* up 5.9% to £26.8m
• Operating margin* improved by 20 basis points to 6.1%
• Underlying revenue⁽²⁾  up 2.7%
• Net debt⁽³⁾ reduced by 33.3% to £218.5m
• Interim dividend increased by 3.3% to 1.55 pence and payment date accelerated

Half year revenue and profit by division 2007/08

Chilled
Revenue* up 5.4% to £229.4m (2006/07: £217.7m)
Profit from operations* up 61.9% to £13.6m (2006/07: £8.4m)

Frozen
Revenue down 2.8% to £117.8m (2006/07: £121.2m)
Profit from operations* down 37.8% to £6.1m (2006/07: £9.8m)

Bakery
Revenue* increased by 2.8% to £91.4m (2006/07: £88.9m)
Profit from operations* maintained on prior year at £7.1m (2006/07: £7.1m)

 ^{* Throughout the Half Year results statement, an asterisk denotes results for continuing operations before restructuing items.  'Continuing' operations exclude businesses which were sold ('discontinued') during 2006/07.  'Restructuring items' which relate to significant restructuring events and the impact of the Fletchers fire in 2006 are presented in a separate 'Restructuring items' column within their relevant Consolidated income statement  category.  Presentation of these items in a separate column helps to provide a better indication of the group's underlying business performance. 'Restructuring items' includes costs or income associated with the restructuring of businesses, gains or losses on the disposal of businesses and assets and financial instrument gains and impairments arising from the group's restructuring activities.}

^{(1) Adjusted eps  is basic eps adjusted to exlcude restructuring items and discontinued operations.}

^{(2) Underlying revenue excludes the impact of currency rate changes, product categories no longer manufactured and discontinued operations}

^{(3) Net debt is defined as total borrowings (including both short and long term bank loans, bonds, loan notes and finance leases) less cash equivalents and short term investments}