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UPDATE 2-Northern Foods Q4 sales up, sees in-line FY

Published 03/26/2009, 03:35 AM
Updated 03/26/2009, 03:40 AM

* Sees FY pretax profit in line with expectations

* Establishes new banking facilities

* Like-for-like sales up across the business

(Adds detail)

By Rhys Jones

LONDON, March 26 (Reuters) - Northern Foods said fourth-quarter sales grew 8.8 percent on last year and that annual sales would be up around 4.7 percent, in a statement on Thursday.

The British group, which supplies food to retailers as diverse as Marks & Spencer and Poundland, also said its full-year pretax profit would be in line with market expectations.

The consensus forecast on Reuters Estimates shows analysts, on average, expect the company to deliver pretax profit of 45 million pounds ($65.49 million) for the year to the end of March.

Northern Foods said it had launched further value ranges, including chilled pizza and discount sandwiches during the fourth quarter, in response to the ongoing recession.

It added that sales in its chilled, bakery and frozen business were all up on the same period last year.

The company, which has deepened its relationship with Aldi and Lidl in recent months, also said it had established new banking facilities of 250 million pounds to July 2012 which will replace its existing 460 million pounds revolving credit facility.

Shares in Northern Foods, which have lost a quarter of their value over the last three months, closed at 45 pence on Wednesday, valuing the group at around 210 million pounds.

($1=.6871 Pound)

(Editing by Simon Jessop)

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